Tuesday 17 April 2007

SAPURA GROUP

Sapura Group counters seem to be on the move, led by SAPCRES which has shot up from RM0.735 to RM1.63 in the space of 2 weeks. This was driven by a Citibank report valuing this counter at RM2.15. Based on past trends, I believe it would be a good bet to go into these counters. SAPRES is a cheaper entry counter and in the past it has surged on speculative interest. In 2000, SAPRES shot up from RM0.50 level to a high of RM8.80 and in 2003, from RM0.50 level to RM2.50. Note that in 2003, SAPCRES had shot up to RM17 (this was before share splits).

I have a buy call on SAPRES with a target of RM1 and higher. Today it closed at RM0.505. Good luck.

I will post my analysis of Patimas at a later date.