March 10, 2011

TAANN - CIMB Research has Sell on Ta Ann, near term gains capped

Stock Name: TAANN
Company Name: TA ANN HOLDINGS BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has a Sell on timber stock Ta Ann Holding Bhd at RM4.80.

It said on Thursday, March 10 the recent breakout looks more like a fake-out. After hitting a new 52-week high of RM5.39, prices have been on a descending trend, suggesting that the bears are gaining pace fast.

'If the 200-day SMA support (now at RM4.65) is breached, we expect renewed selling pressure to set in, pushing prices lower towards RM4.35 and RM4 next.

'Near term gains are likely capped at RM4.84-RM5.02. Hence, our strategy here is to unload on strength. But a buy stop at RM5.15, just in case,' it said.

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