July 1, 2010

KMLOONG - CIMB Research has Buy on Kim Loong at RM1.97

Stock Name: KMLOONG
Company Name: KIM LOONG RESOURCES BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has a Buy on Kim Loong at RM1.97 where is it is trading at a price-to-book value of 1.4 times.

The research house said on Thursday, July 1 that Kim Loong is still trapped in a downtrend channel but things have improved in recent weeks.

'Prices hit a low of RM1.80 and have since bounced back above its 30-day and 50-day SMAs. Looking at the chart, it seems that the candles will soon test the downtrend resistance line at RM2.02,' it said.

CIMB Research said if the RM2.02 level is taken out, next upside targets are RM2.18 and RM2.29. Its positive stance is also backed by the improving technical readings.

'MACD is about to turn positive while RSI is also rising. The rebound could be extended and traders with higher risk appetite may want to take some position ahead of the breakout. However, always place a stop at RM1.80, its recent low,' it said.

Kim Loong cultivates oil palm and cocoa. It owns and leases leasehold land, manufactures concrete culverts, processes and markets oil palm products, and manufactures compost fertilizers. The company also trades in fresh fruit bunches.


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