Super high volume this morning at 7.3 m shares already. Stock up 1 cent at 25c. Yesterday\'s vol was only 2.4 m. So what\'s brewing? My 2 c worth is some contract clinched.
Massive volume of 11.6 m shares in the first hour alone this morning! Something\'s up and the stock is at 27.5 c (+1 c), not sharply up but it suggests that something\'s brewing. Other construction stocks are up too.
[Dow Jones] Yongnam (Y02.SG) +1.9% at 2-month high of S$0.27 in active trade, extending Friday\'s 10.4% gain. Newsflow on construction group has been thin since release of 4Q09 results late last month, but investor interest unabated based on expectations Yongnam well-positioned to land more contracts in Singapore, Asia, Middle East. Company last month said it expects steady stream of contracts this year, with projects tantamount to 62% of S$492 million orderbook expected to be completed in 2010. \"Downtown MRT Line contracts remain Yongnam\'s key bidding focus,\" says CIMB, which has Outperform call with S$0.46 target price; \"prospects for this segment remain bright, given that the Singapore government has announced plans for a new expressway and new MRT lines after the completion of the Downtown Line and Marina Coastal Expressway.\" Notes company currently bidding for total of S$1.4 billion worth of contracts, with management hopeful of securing one-third of this amount. Resistance eyed at current 2010 high of S$0.295 set in January.
Seems a tad too aggressive a target price of 46 cents by CIMB. For that, Yongnam has to win lots of big contracts in the next couple of months. As it is, the outstanding order book ain\'t hot to make me expect a major rise in revenue/profit for 2010. What do ya think?
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