§ From a 3-month high of RM3.26 (19 sep), STAR tumbled 21% to a low of RM2.58 (24 Dec).
§
Values
are likely to resurface after recent plunge and we see limited scope
for further significant selldown due to its extremely oversold positions
(daily RSI at 6.6 and slow stochastic at 1.8), defensiveness, strong
netcash of RM230m as at 3Q12 (or 31sen/share) and attractive net
dividends (6.9%). Valuation remains undemanding at 10.7x FTY13 P/E,
implying a 11.5% discount to its 5-year average of 12.1x.
§
Immediate
supports are RM2.54 (daily lower Bollinger band) and RM2.46 (23.6% FR).
Lower supports are RM2.30-2.35. Risk takers may start to nibble as
a relief rally in the pipeline with initial upside targets at RM2.72
(100-d SMA) and RM2.83 (20-d SMA). More formidable resistances are
RM2.90 (50% FR) and RM3.05 (61.8% FR). Cut loss below RM2.43.As Warren Buffett once said, be brave when you see blood in the street. There is no blood in the street yet but this particular counter (Star) has blood all over its price. So maybe it is good to buy some at around RM2.60 and sell when there is resonable profit to be made.
