May 10, 2011

JCY - CIMB Research has Buy on JCY at 65 sen

Stock Name: JCY
Company Name: JCY INTERNATIONAL BERHAD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has a technical Buy on JCY International at 65 sen at which it is trading at a FY12 price-to-earnings of 7.6 times and price-to-book value of 1.5 times.

It said on Tuesday, May 10 JCY broke out of its long term bullish wedge pattern in late March and prices hit a high of 83 sen.

CIMB Equities Research prices have since eased and it had retraced to its 61.8%FR levels while it formed a hammer-like candle on Monday.

'We do not expect prices to move too far from its 61.8%FR levels as its MACD and RSI are turning sideways now, possibly suggesting a slowdown in selling momentum.

'Aggressive traders may go long now with a stop placed below the recent swing low of 57.5 sen. A break above 68.5 sen would likely be a good signal to suggest that a new rally has begun. We expect prices to take out the old high of 83 sen in the short to medium term. Remain positive on the stock,' it said.

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