April 4, 2011

COASTAL - Coastal advances at mid-morning

Stock Name: COASTAL
Company Name: COASTAL CONTRACTS BHD
Research House: OSK

KUALA LUMPUR: COASTAL CONTRACTS BHD [] shares advanced on Monday, April after the Edge Weekly reported that Coastal was eyeing a strategic shareholder to diversify into the fabrication business.

At 10.30am, Coastal was up 13 sen to RM3.21 with 1.91 million shares done.

OSK Research maintained its Buy call on Coastal with a fair value of RM4.85, and said the news was not only within its expectation, but in fact it had envisaged something even bigger for the company.

'We believe Coastal could be a potential merger and acquisition target since its share price valuation is appealing and it owns a strategic asset in its 100-acre yard which sits tight in a strategic area, and which is currently being coveted by many O&G operators for conversion to facilitate fabrication or repair and maintenance jobs,' it said on April 4.

No comments:

Post a Comment