CIMB Equities Research has a Sell on semiconductor device maker Unisem at RM3.21, which is trading at a FY11 price-to-earnings of 9.3 times and price-to-book value of 1.7 times.
The research said on Tuesday, July 20 that prices did manage to climb above its 50-day SMA to test its RM3.25 resistance. However, at current prices, it said it started to see some weakness creeping in, making the retest of the old high of RM3.53 less likely.
“MACD is still rising but could potentially form a bearish divergence with prices. And so it is RSI and volume, which makes us less comfortably with the buy call earlier.
“Prices could still push on a tad more, but we reckon that a reversal is more likely to happen. Upside could be capped around the 78.6%FR at RM3.31. A breakout above the RM3.53 would signal more upside to come but it remains a low probability scenario,” it said.
Written by CIMB Equities Research
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