Friday, 7 December 2012

Highlights / Stock Picks of the Day - Kian Joo Can Factory Bhd (KIANJOO")


KIANJOO’s share price has been on an uptrend for a little over two years now. The rally was further accelerated in June, following speculation that the two new additions to KIANJOO’s board would bring strength to the future direction of the company. As a result, the share price rose almost 40% to a high of RM2.73 just two months ago. Interestingly, even at yesterday’s closing price of RM2.12, the overall uptrend still remains intact. We believe that a rebound from the trend line is already in the making, and our view is further supported by the bullish short term indicators, which are mostly bullish. We reckon the reward to risk ratio is particularly high for this stock technically with a conservative target price of RM2.38 possible while stop-loss should be placed at RM2.00.

Source: Kenanga

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