Our faith in QTV’s game-changing proposition in vascular diseases treatment is solidified in the aftermath of the TCT conference – the world-renowned interventional cardiovascular medicine conference that was held in Washington D.C.
We keep our estimates and target price (based on a blended valuation approach). Despite the recent share price drop on moratorium lock-up expiry, we keep our Add call with the roll-out of coronary Chocolate products in the US and EU in late-3Q14 and regulatory approval in Japan for Chocolate products early next year being the catalysts.
Versalink Holdings is an established Malaysia-based manufacturer of mid to high-end system furniture. The Company provides products and services to more than 90 overseas dealers located in more than 40 countries in Africa, Asia, Australasia, Middle East and North America. The Company also represents international brands such as ZÜCO Bürositzmöbel AG of Switzerland, Dauphin Human Design of Germany and Sinetica Industries Srl of Italy.
The Company is principally engaged in the design, manufacture and supply of a wide range of system furniture and the provision of workspace planning and consulting services. The Company also supplies ancillary products such as seating models and work tools that are sourced from third party manufacturers. Customers include contractors, corporate customers, dealers and OEM customers in Malaysia as well as overseas.
BUY with a target price of S$10.20 with protective stops placed at S$9.55. The stock has rebounded from the rising 50-day EMA after a brief consolidation and looks poised to retest its previous high formed on 25 Aug 14. Watch if the MACD indicator could form a bullish crossover above the centreline as the 14-day Stochastics indicator could move out of the oversold region after forming a bullish crossover.
Expected timeframe: 1 to 2 months
Our institutional research has a fundamental BUY with a target price of S$12.05.
A reversal of volatility-suppressing interest rate policy, a stronger US$ and higher bond yields driving an increase in the cost of capital pose growing headwinds for Asian equities. Historically, volatility regimes have been inversely correlated with equity returns and P/E multiples. A benign interest rate-volatility environment on top of exceptionally low interest rates has allowed country-specific factors to dominate selected equity market performance (i.e. Indonesia and India). Across Asia, low volatility stocks have significantly outperformed high volatility stocks in recent years. If high volatility stocks have not outperformed in a benign volatility environment, the chances that they will when rates are rising become even lower. Stick to value stocks and markets where policy risks are for easing not tightening as a hedge into 2015.