May 23, 2011

PWORTH - CIMB Research has Buy on Priceworth at 65 sen

Stock Name: PWORTH
Company Name: PRICEWORTH INTERNATIONAL BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has a technical Buy on Priceworth International Bhd at 60.5 sen, at which it is trading at a price-to-book value of 0.4 times.

It said on Monday, May 23 that Priceworth is gyrating in a bullish wedge pattern. Recent consolidation may have found its bottom at the 57 sen level and it thinks a stronger rebound is imminent.

'Prices need to push above its 30-day and 50-day SMAs to convince the bulls,' it said.

CIMB Research MACD is poised for a positive crossover while RSI has hooked upward. The moving averages at 62.5 sen and 64 sen are the first targets followed by 68 sen.

'Prices must not fall below the 57 sen level to keep the bulls intact. Be quick to cut loss if this level is breached,' it said.

Priceworth manufactures and sells processed wood products, distributes and trades log timber, provides wood processing services and timber extraction, and rents kiln dry machinery. It also provides CONSTRUCTION [] and land development contract services.

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