KNM Share Is Bottom But Rebound Unlikely

KNM share is bottom but rebound unlikely due to KNM business is not looking good. What I know from they employee the turn over of man power is very high, so sure management got some problem.

KNM About To Moving Up Again

KNM price dip below RM2 and now at support line RM1.90. Base on the chart the big investor will test the market for any weak holder soon, may be today so once most of the weak holder is "wash" KNM about to moving up again.

KNM Dip To RM 2 Support Line

KNM now dip to RM2 main support line, any broken this level will be a good buy. Last 28 MAY 2011 a big dip with bad news is to wash all the weak holder so when they panic selling, someone is buying the share. However I think KNM will move sideways til next financial news flow out.

My old posting:-
KNM Price Likely To Dip More

KNM Price Likely To Dip More

KNM price dip after first quarter earnings come in below expectations. Base on the chart, the next support line is at RM2.00 so I think KNM price likely to dip more next week. However, this also is a good time to made panic selling.

A Positive Development At KNM Chart

After 24 FEB 2011 huge price dip in KNM, now KNM price is hold above 2.60 and likely the share will move sideways for accumulation before move higher.Due to high oil price, KNM share may likely benefit from it for long term investment.

KNM Report From HwangDBS

Christmas comes early

• Secures GBP450m (c.RM2.2b) power project; RM4.4b in the bag YTD
• A recovery story tapping on the growing opportunity in domestic and global markets; FY11/12F raised 24%/9%
• BUY, TP raised to RM3.50 on 15.5x FY11F EPS

Ending the year with a bang. KNM announced that its wholly-owned subsidiary, KNM Process Systems, had secured the GBP450m (c.RM2.2b) EnergyPark Peterborough contract. The 4-year contract entails the development of 80MWe gross capacity energy from biomass and waste recycling centre project in the United Kingdom. This brings contracts secured YTD to RM4.4b with an order book size of RM4.6b, an all-time high.

Earnings to garner momentum in 2011, potential news flow on local jobs in the near term. We expect the recovery in earnings to continue in the next few quarters as the company rides on the higher capacity utilisation and better margin jobs secured post-2009. Going forward, we
expect domestic market to play a crucial role in the company’s recovery story. Near term, we see news flow to come from its latest JV which is targeting potential jobs in East Malaysia. FY11-12F earnings are upgraded by 24% and 9%, respectively, to factor in higher contract wins in 2010 and better margins on new jobs secured. Buy, still a laggard in the O&G space.

We maintain our Buy call on KNM and revise upwards our TP to RM3.50 to reflect the earnings upgrade and higher FY11 PE multiple of 15.5x, based on 15% premium to its historical PE average of 13.5x. We believe the higher valuation is justified supported by the positive sentiment on oil & gas companies, particular on rising domestic jobs. KNM is also poised to benefit from growing global opportunities. KNM is trading at FY11 PE of 11.9x against local and regional peer’s average of 15.4x and 18.6x, respectively.

KNM Is Back To Action!

After a long period KNM become a penny stock now it back to action again. Just begin of this month on 03 Dec 2010 KNM split share 4 into 1 to make the share out from penny stock, and yesterday KNM share just fly. I think most of the KNM share in UNMO hand already sold because KNM share is in sleep for a year already and share in UNMO people is FOC so no loss to sold in any price.

Now after all the share is sold, KNM is back to action.

KNM Need To Broken RM0.52 Level To Go Higher

Base on the chart, KNM in short term may drop back to RM0.48. However for KNM to go higher, the share price need to broken RM 0.52.

KNM Likely Ready To Move Up

After a long time of accumulation KNM had been tested the market below RM0.48 and the drop hits below RM0.40. Due to the vol is low, the test is successful and the price move up again.

Borsig GmbH Drop KNM Share Near Major Support Line RM 0.70

KNM Group Bhd saw net profit tumble almost 70% to RM31.92mil for the three months ended Sept 30 compared with the previous corresponding period due to the continued impact of the intangible asset amortisation arising from the acquisition of Borsig GmbH and the global economic slowdown. The process equipment manufacturer’s revenue dropped 38.57% to RM458.34mil in the third quarter.

Due to this news KNM had sale down to near 1st major support line. I think any KNM share price drop below RM 0.70 may be a good buy if the vol is high. Now Gold price is on bull run due to economic recovery unstable but when the economic get really better Gold price will stop going up and Black Gold ( crude oil ) will get more higher and stable price compare now. With the crude oil price getting better KNM share may likely to shine again.

A Same Pattern Form Between KNM And Genting Singapore

Base on the chart analysis on Genting Singapore, I found that this share is forming a patten same like KNM 2 months ago.
























For Genting SP the major support line is at SD1.00 and for KNM last 2 months ago the major support line is at RM0.70 so when this support line broken KNM share jump up high the next day to form a bullish pattern till now. May be when Genting SP broken major support line will bounds up like what happen in KNM 2 months ago.























Will Genting SP form and follow KNM chart pattern? What we can do is wait and see.

Bullish Sign On KNM Share Price

Money start flow back into KNM share. Look like KNM share price forming a bullish formation, if the price broken RM0.90 KNM share likely to go higher to hits above RM1.00

KNM Update Report From HWangDBS

KNM Group (RM0.76; Buy; Price Target: RM1.10; KNMG MK)
Secures RM155m new contracts

KNM announced yesterday that its subsidiaries, FBM-KNM FZCO (“FBM”), KNM Process Systems Sdn Bhd (“KNMPS”) and Borsig Boiler Systems GmbH (“Borsig”), have secured RM155m new orders. The new orders include:-

1. FBM, from Danieli & C Officine Meccantiche SpA, for Reactor Vessels for the Gulf Steel Plant Project in Egypt;
2. KNMPS, from Technip Itally SpA, for Shop Assembled Columns for the Jubail Export Refinery Project in Saudi Arabia; and
3. Borsig, from EdeA V.O.F., for the engineering, supply and installation of Steam Boilers at Chemelot Industrial Estate in Geleen, Netherlands.

The new order win is in line with our view that contract flow for the oil and gas sector has picked-up following the stronger crude oil price and completion of cost review for some of the outstanding projects. Contract flow has picked up since July 09 for KNM, with RM1.5b new wins for YTD09. We estimate average EBIT margin of 25% for the RM155m new projects, with EBIT contribution of RM38.8m to be recognised over the next 1-2 years. KNM is poised to secure new contracts as new projects from the Middles East have started to flow through. New development at the Northern corridor of Malaysia and Australia (KNM is bidding for c.US$300m worth of jobs at Gorgon), could also lead to more projects.

Maintain Buy and RM1.10 target price based on 10x FY10F PE, which is its midcycle valuation. KNM is now trading at attractive 7x FY10F PE against local and regional peers’ averages of 9x and 15x.

An Update Of KNM From HwangDBS

If KNM is on bullish patten KNM-CB and KNM-CC will be a profitable warrant.

Just Sale Out All My KNM Share

Yesterday KNM bounds up more higher and I sale out my balance share at RM0.775. Will buy back the share when it drop below 1st support line.

Related Posting:-

1. KNM Drop Below RM0.70 Support Line
2. KNM Technical Bounds Up But Forming A Descending Triangle

KNM Technical Bounds Up But Forming A Descending Triangle

After broken major or 1st support line at RM0.70 yesterday KNM bounds up to close at RM0.745 with day high at RM0.75. This is a technical bounds up and KNM likely to forming a descending triangle. If KNM really forming this patten so the price will drop to next support line at around RM0.55 before any rally or bull run. I think today KNM likely to keep the price at above RM0.75 to form a descending triangle.

I just sold out all the share I brought at RM0.695 on Monday at RM0.74 with 6.47% of profit. The profit is not mach but I get this profit without bank in any cash yet ( still in T+3 ). Base on the chart and latest update from off market, KNM share price likely to form a descending triangle and it will be risky to keep the share better keep your money.

I still holding some KNM share I buy early at RM0.75 and will sold it out by today.



Related Posting:-

1. KNM Drop Below RM0.70 Support Line

KNM Drop Below RM0.70 Support Line

KNM close at RM0.695 on yesterday and broken 1st support level at RM0.70. Now KNM is drop into oversold zone base on RSI. Since KNM announcements on 2Q2009 profit drop, the share price was drop from around RM0.90 to RM0.695 equal to -22.77% however since start the drop KNM had share buy back start at 24/08/2009 till now cumulative net outstanding treasury shares as at to-date (units) is 58,079,500 equal to 1.45%.

Same thing happen before in IOICorp and after a few week IOICorp bounds back strongly so will KNM do the same? For me I think likely KNM will bounds back to RM0.70 and move sideway untill 3Q09 announcements. Yesterday had brought some KNM share on RM0.695.

KNM Price Likely To Bottom Up Soon

Base on the chart KNM price likely to hits bottom this season at around RM0.70. This level is the major support line and if KNM price drop below this level than the price will likely to hits RM 0.55 for next major support line. I think to broken this level will be unlikely due to market will rally again for entering 4Q2009.

Target Price From HWangDBS 2H2009 Summery

Sime Darby (RM8.24; Fully Valued; Price Target: RM7.45; SIME MK)
Stronger 4QFY09

• 4QFY09 earnings were better than expected due to lower taxation, slightly stronger property margins, and lower borrowing cost
• CPO price could range between RM2,000 and RM2,200 in FY10F
• Maintain Fully Valued call and RM7.45 TP.

Axiata (RM3.11; Fully Valued; Price Target: RM 2.70 (Prev RM 2.35); AXIATA MK)
2Q09 core profit in line

• Annualized core 2Q09 net profit is in line with our FY09F profit, but below consensus
• We raised FY10F-11F earnings in anticipation of a turn around in its overseas operations
• Sum-of-parts price target is raised to RM2.70. But downgrade to Fully Valued on rich valuation.

Litrak (RM2.69; Hold; Price Target: RM2.70; LTK MK)
Limited upside

• 1QFY10 result was in line, with traffic volume growing 4% q-o-q
• Declared 10 sen interim DPS, double that for preceding year
• Downgrade to Hold, TP maintained at RM2.70.

KNM Group (RM0.77; Buy; Price Target: RM1.10; KNMG MK)
Expect stronger 2H09 earnings

• Weak 2Q09 result was within expectation
• Expect stronger 2H09 following recent contract wins
• Poised for new contract wins given stronger oil price.

MRCB (RM1.29; Buy; Price Target: RM1.50; MRC MK)
Stronger earnings ahead

• Strong 2Q09 result driven by higher construction contribution
• Expect earnings to improve following lower building material cost and improving property demand
• Maintain Buy and SOP-derived RM1.50 TP.

TRC Synergy (RM1.45; Buy; Price Target: RM2.05; TRC MK)
Still awaiting key catalyst

• 2Q09 result in line, margins improved
• Still missing key re-rating catalyst, Petro-Bru led Brunei refinery project
• Maintain Buy rating and RM2.05 TP.

Malaysia Airports (RM3.34; Buy; Price Target: RM4.50; MAHB MK)
2Q09 result within expectation

• 2Q09 core net profit was flat y-o-y at RM60.6m, in line with our expectation but below consensus’
• Positive impact from restructuring, strong passenger growth in LCCT, and improved rental contribution supported earnings
• Maintain Buy and SOP-based RM4.50 TP.

Eastern & Oriental (RM1.33; Buy; Price Target: RM2.10 (Prev RM 1.50); EAST MK)
In line, stronger sales ahead

• 1QFY10 result was in line, profit is expected to pick up with RM330m unbilled sales and RM2b upcoming launches
• Completion of rights issue by Oct09 will strengthen balance sheet and cashflows
• Maintain Buy, raised TP to RM2.10 based on 20% discount to RNAV of RM2.66 (fully diluted RM1.99)

Lafarge (RM6.30; Fully Valued; Price Target: RM5.10; LMC MK)
2Q09 in line, supported by higher ASP

• 2Q09 result was within our and consensus expectations
• Demand continues to fall 7% y-o-y, but should pick up in 2H09 along with a recovering economy
• As expected, LMC declared a single tier 15 sen DPS
• We retain our Fully Valued call as valuation remains expensive; RM5.10 TP is based on mid-cycle 9.8x PE.

KNM GROUP BHD saw its net profit drop by 25.8%

KNM GROUP BHD saw its net profit drop by 25.8% year-on-year for its second quarter ending June 30, 2009, to RM71.42 million from RM96.29 million and no dividend was declared for the quarter.

However this bad news is already reviewed on KNM share price by drop to RM0.77 and low volume. Now the bad news had roll out and soon I think likely the share price will gains on oil rebound in coming next week.

Related Post

1. KNM Support Line At RM0.75