Monday, March 30, 2009

Sell Sunningdale Tech, Buy SembCorp Marine, Keppel Land

Sunningdale Tech (SUNN SP; S$0.035) – SELL

• A base building formation was seen on the daily chart. The stock may have bottomed temporary at its 52-week low of S$0.03, but until a breakout from its long term downtrend channel materialises, we are still bearish on the stock. There is still a risk for it to go below S$0.03.

• Although technical landscape has improved, gains would be capped at $0.045 and S$0.055 resistances.

• We advocate investors to take profit on rally, as the bears still have the upper hand over the bulls.

Sunningdale Tech Ltd manufactures and sells mould and plastic injection products. The Company also designs, manufactures, markets, and exports high precision steel moulds. Sunningdale Tech trades car audio equipment and provides product design consultancy, mold flow service, mold design, and project management.

SembCorp Marine (SMM SP; S$1.87) – BUY

• Tested its triangle resistance trend line yesterday. However, if it fails to hold above S$1.86, the stock may poise for a minor correction soon. Support is seen at S$1.67.

• Although MACD is still rising and has pierced into the positive territory, RSI is already overbought at 76.

• Investors should wait for share prices to come off before accumulating, preferable near its support. The overbought RSI would cap further gains for now. Resistance is at S$2.04.

SembCorp Marine Limited operates ship building, ship owning, ship repair and conversion. Through its subsidiaries, the Company provides equipment rental, cleaning and maintenance services, marine, general electronic, and electrical works. SembCorp Marine also trades copper slag, processes copper slag for grit blasting and building, as well as fabricates metal structures.

Keppel Land (KPLD SP; S$1.49) – BUY

• The stock has rebounded from its 52-week low to retest the triangle resistance. However, we would only turn bullish if prices break above S$1.51.

• Technical indicators have improved. MACD is positive but RSI is fast approaching the overbought zone.

• While daily chart still looks positive, investors should buy on weakness, possibly near its support at S$1.38. Cut losses if prices fall below its 30-day SMA at S$1.28.

Keppel Land Limited is the property arm of the Keppel Group. The Company's portfolio of properties includes office towers, residential properties, hotels, resorts, retail complexes, industrial buildings, and townships. The Company also provides management and consultancy services.

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