OSK Technology Sector Stock Picks, Oct 2011


OSK, maintains their UNDERWEIGHT call on the Technology sector as we expect sub par growth in the seasonally sturdy 3Q of the year. Although valuations have retraced to as low as below net book value for some, we believe it is still premature to attempt bottom-fishing with firm recovery unlikely until 2012 given the current global macro outlook.

Despite the recent sharp spike in USD against RM which could help to lift earnings given the export nature of local technology manufacturers, OSK upholds their negative view on the sector due to the weakness in end-consumer demand for HDDs amidst rising demand for solid-state drives and the impact from floods in Thailand where these companies presences.

Below are the target prices/fair value and ratings for selected technology stocks.

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OSK Technology Sector Stock Picks, May 2011


OSK have no buy calls among the semiconductor companies and HDD component manufacturers under their coverage.

Although share prices have largely retraced from respective peak valuation since 2009, OSK remain wary of potential earnings shortfall should Ringgit appreciation accelerates, potential component shortages insemiconductor supply chain materializes, or weak sentiment in the consumer PC marketprevails.

Hence, OSK maintain UNDERWEIGHT recommendation on the sector.

Below are the target prices/fair favue and ratings for selected technology stocks.

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S&P 2010 Stock Picks – 25 Stocks to Outperform FBM KLCI

standard and poors

Standard & Poor’s recently issued a comprehensive report on Malaysia and make 25 stocks picks that they believe will outperform FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) in 2010.

This year, share prices are not as cheap as in early 2009 and the market will be more volatile. Standard & Poor’s however, maintain FBM KLCI target at 1,400 points in 2010 for an 11% return.

They believe the chosen stocks will be the best poised to benefit from the economic recovery and with relatively comfortable valuations to hold up against the increased volatility in the market. The managements of the chosen company also have a proven track records. Some of the chosen companies are also the dominant players in their fields.

Below is the 25 stocks that  Standard & Poor’s pick for 2010.

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Stock Pick – 10 Counters to Watch in 2010

Every beginning of the year The Edge Malaysia, make a recommendation on the counters to Watch for that year. This year, they recommend 10 counters to look into based on companies fundamental and share price valuation.

Before we see the 2010 list, we look at the performance of their 2009 stock pick. In 2009, The Edge recommend 20 counters in their watch list. Overall the The Edge stock picks in 2009 outperformed Kuala Lumpur Composite Index (KLCI) with an average gain of 68% versus 45% gain for KLCI. In the investors sell the counters at the peak of the share price, the gain is higher at 78.5%.

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