The Edge Best Call Awards 2019
(Published in Capital, The Edge Malaysia Weekly, on December 30, 2019 - January 05, 2020)
UOB Kay Hian Research analyst Kong Ho Meng’s call on Uzma Bhd
Making a right call on oil and gas (O&G) stocks has not been easy with the industry in a rough patch since 2015. Analyst Kong Ho Meng’s recommendation was selected as one of the best calls for 2019 mainly because of the timing of his call throughout the year. It was also a non-consensus call.
Over the course of one year, Kong revised his calls three times, each tracking the share price closely. In short, those who followed his recommendation would have benefited from his prescient timing — buy low, sell high.
As Uzma’s share price halved from RM1.40 to around 60 sen in December last year, Kong made a brave call, recommending the O&G stock to clients at a time the world was unsettled by an abrupt fall in oil prices in 4Q2018.
As he had expected, Uzma staged a strong rebound to RM1.07 in mid-March. He then revised his call to “sell” from “buy”. Investors who took profit then would be grinning now as the stock dropped to 58 sen from its peak.
Again, Kong upgraded the counter when it was below 60 sen in August. Uzma then reversed its downward trend, climbing to the year’s high of RM1.11 in October. Since then, he has maintained a “hold” call on the counter to continue riding the improved sentiment in the O&G industry.
Excerpt from https://www.theedgemarkets.com/article/edge-best-call-awards-2019