MoserBaer - MoserBaer had made a double top earlier
around 340 levels, and slipped sharply
from the highs. It is currently trading
around the major support level which is
also a double bottom for the stock around
240 levels. The stock has found support
and has reverted back with an increase in
volumes, suggesting an excellent bottomfishing
opportunity in the stock. The
leading indicator like 14-day RSI has given
a strong buy signal, as it bottomed out
around the oversold territory. However,
the stock currently is trading below all the
major moving averages barring the 200-
day EMA, from where we had earlier seen
a bounce back in the stock. The stock may
face trouble around 280 levels on the
upsides above which it could witness a
unidirectional movement towards its all
time high levels of 350. This stock is an
excellent bottom fishing pick from the
current levels. All long positions in the
stock should be protected with a stop loss
placed below 238 levels on a closing basis
DLF - DLF had been consolidating lately around
its rock solid support zone of 850-900 levels.
The stock made a high of 999 in the recent
past. However, profit booking forced the
stock to test lower levels of 800. The stock
is currently consolidating around the 900
mark and a further decline in the stock is
largely ruled out. The 14-day RSI is hovering
around the oversold territory and hasgenerated a
strong buy signal from the current levels.
Immediate resistance isplaced at around the all time
high levels. A sustained close above that level will
induce fresh buying interest in thestock which might
guide it to test new highs of 1080-1100 levels.
The 50-day EMA level is placed at around 850
levels which is unlikely to be broken in the near term.
Investors are advised to assume long positions in the
stock in the range of 900-925 levels for a medium term
target of 1050 and 1100 levels. All long positions in the
stock should be protected with a stop loss placed below
840 levels on a closing basis.
Cinemax - declared its 2QFY08 resultswhich were lower
than our expectations.This was due to a delay in the
launch ofits new properties as compared to our
expectations. The delays have been due to mix of
late handing over of properties,delay in getting
the fit-outs done and getting the specific clearances
like no objection certificates from the municipal
authorities. The company has currently
15 properties under operation with 44
screens and 12,057 seats. The topline of
the company grew by 7.5%, while the bottomline rose
by 36.8% QoQ on account of larger number of
screens under operation. The company also
reported a 70% QoQ jump in its other income from
Rs.8.9 mn to Rs.15.1 mn, thereby aiding its bottomline
growth. As the company was listed in (2H FY07), the
corresponding figures of (2QFY07) are not available for
comparison. Moving forward, they now have pushed back
the launch of new properties on account of various reasons
as outlined. On an average, we now estimate that upcoming
properties may be delayed by a quarter. Hence, we have revised
our FY08E and FY09E topline numbers. Our FY08 sales
are revised downwards by 17% from Rs.1,580 mn to
Rs.1,306 mn, while FY09 sales from Rs.2,864 mn to
Rs.2,414 mn. Inspite of this reduction in our estimates,
we still rate Cinemax as a ‘BUY’ with a reduced price target
of Rs.168 against our previous target of Rs. 200. The
stock currently trades 15.2x FY08E and 8.7x FY09E. The
revised price target implies a 41% upside from the current
market price and is at 12.3x FY09 estimated earnings.