Written by Joseph Chin
Monday, 28 September 2009 09:47
KUALA LUMPUR: CIMB Retail Research sees limited upside for MUDAJAYA GROUP BHD []'s share price and recommends investors sell it into strength at RM3.73.
In a research note issued on Sept 28, it said the financial year 2010 price-to-earnings is 8.7 times while price-to-book is 4.6 times.
"The stock was stuck in a consolidation mode after recent spike up. Unless it can run above the 52-week high of RM3.92, we think upside is limited for now. MACD shows a bearish divergence while its RSI has also retraced from its peak. The immediate support is at RM3.51, followed by RM3.23 next," it said.
CIMB Equities Research said investors may want to take some profit off the table and buy back later, preferably near the stipulated support levels.
It added if RM3.92 was taken out, the next upside target was at RM4.08 and RM4.15. Sell into strength.
Mudajaya provides civil engineering and building CONSTRUCTION [], leases plant and machinery, and operates property management and development. Mudajaya also manufactures concrete products, precast concrete, and building materials.