Highlights / Stock Picks of the Day - Pos Malaysia ("POS") – BUY

News of POS's 67% YoY increase in 3Q13 pre-tax profit was well received by the market last week. As a result, the share price had broken out of its consolidation phase, underpinned by five straight days of gains. In fact, the share price has now confirmed a "Bullish Pennant" chart pattern following yesterday's 18 sen advance to RM3.75. Taken in combination with the bullish technical indicators (MACD, Stochastic and SMAs) and increased trading volume, the "Bullish Pennant" suggests a continuation of the overall uptrend. Undoubtedly, the odds favour the bulls and we reckon that the share price could potentially climb towards the "Flagpole" target price of RM4.26 (target RM4.23 or 2 bids below this level). We suggest that traders looking to buy in could do so now, while a stop-loss of RM3.38 should also be placed.

Source: Kenanga