MMCCorp to soar after listing subsidiaries

MMCCorp plans to list or spinoff its subsidiaries namely, Gas Malaysia, Malakoff and Johor Port.

Listing them will lighten MMC's internal system to focus on their core ETP projects. Essentially the multi-year multi-billion ringgit Kuala Lumpur MRT construction.

Definitely a pick as a stock ready to soar. (NOTE: recently I came across many English typos in the internet writing space, titling - stocks ready to sour! Or perhaps was that their topic, about stocks that are ready to take a great hit and turn into sour tasting grapes?)

Gamuda rated Buy $4.50 Target Price

Just this week, Gamuda has been rated at Buy by 3 research house averaging a target price of $4.50.

OSK rates a high 4.96 target price stapling the imminent underground MRT ETP as the basis.

CIMB rates it higher at 5.60 target price.
It said on Friday, March 25 that it expects 2H11 to be stronger due to the gradual rise of CONSTRUCTION  margins as key projects enter their mature phase.

'The reason for the deviation was our underestimation of EBIT margin. We now up our FY11-13 EPS forecasts by 8-10%, which raises our RNAV-based target price from RM5.45 to RM5.60,' it said.

CIMB Research said these strong results could catalyse the stock, along with project awards and newsflow on the MRT project for which Gamuda is the PDP and potentially the contractor for the tunnelling works. 

Mudajaya and KNM elevating silently others are in the limelight

Recently the ETP announcements helped propel stocks that are being directly awarded with contracts. Namely Gamuda, MMC Corp, Dialog, SapuraCrest.

At the same time some stocks are moving silently behind the scenes.

Mudajaya up from RM4.16 to RM5.10 today.
KNM up from RM1.80 (adjusted) to RM3.20 today.

Bursa Component Stocks Ready to Soar in 2011

My last writing was a preview and insight into the component stocks of the FTSE Bursa Malaysia Composite Index. A de facto benchmark of the country's performance, looking inside the ingredients is essential in powering your stock portfolio into winning gems and supernormal profits.

All the banks in the list, is out of the selection - mainly because of cost and also they have generally surged to high levels by now. The goal is to look for the final gems that can outperform for 2011. Forget 2009 and 2010 where many stocks have gained 50%. So here's my focus for this write up.

Now 22 left. MAS is out, since if one were to go into this sector (airline/travel), then go for AirAsia.

Heavily priced heavyweights such as BAT (over 40 RM), Digi and KLK(over 20 RM) I will leave out as well. So is SIME with a messy politico game. Plus it is expensive. Petronas Dagangan and Petronas Gas too both over 10 RM. So those too are cut away from my radar of stocks that are ready to soar in 2011.


Which currently leaves the remaining 10:

Axiata Group Bhd

1 Week 3.4% 13 Weeks 3.6%  
4 Weeks 7.4% 52 Weeks 55.4%

Maxis Bhd
1% since listing 2010

PETRONAS Chemicals Group Bhd
10% since listing 2010

MMC
1 Week 11.5% 13 Weeks 11.9%  
4 Weeks 0.3% 52 Weeks 26.5%

Genting Malaysia BHD
1 Week 4.4% 13 Weeks 8.3%  
4 Weeks -0.3% 52 Weeks 22.9%  

Telekom Malaysia

1 Week 6.3% 13 Weeks 10.4%  

4 Weeks 6.9% 52 Weeks 19.9%  

Tenaga Nasional

1 Week -2.3% 13 Weeks -4.9%  

4 Weeks -7.7% 52 Weeks -0.3%  

YTL Power International

1 Week -0.8% 13 Weeks 1.3%  
4 Weeks 4.8% 52 Weeks 10.0%  

Gamuda
1 Week 11.5% 13 Weeks 13.0%  
4 Weeks 11.3% 52 Weeks 49.6%

Plus Expressways

1 Week 2.0% 13 Weeks 5.3%  
4 Weeks 10.8% 52 Weeks 41.0%

The recent stock performance can give some indication where most stocks have rised 40-50% from a year ago. Gamuda up 50%. Plus 40%. Axiata 55%.

Tenaga has been trickily at a precarious position - not up nor down too much the past year. And now facing some issues with coal supply. It is perhaps still a good buy seeing it is still the utility company to go to in Malaysia.

Therefore, my selections would zoom down to MMC, YTL Power, Genting Malaysia.