******** Still a Trading BUY: NeraTel. Share price 0.71. (Likely to push up further if 0.700 holds as immediate support)

Following up from Neratel Trading call made yesterday, 2nd July 2013. NeraTel has indeed tested the Critical 0.700 resistance today and broke above this morning. Support should remain at 0.700 currently. Note that at this level, it is currently at an all time high and momentum still looks strong as long as it stays above 0.700. Next target probably at 0.74 to 0.75 region. A break above can see it test psychological 0.800 level in the near term before consolidating.

Stop loss at 0.68. 

LIM AND TAN – 3^RD July 2013

 

DMG – 1 JULY 2013

Nera Telecommunications: S$0.63
BUY (TP: S$0.79)

Myanmar Telco’s Real Singapore Beneficiary
Myanmar  government  announced  the winners for the two coveted licenses to
Norway’s  Telenor  and  Ooredoo  (formerly  Qatar  Telecom), which beat out
SGX-listed  Singtel  and  Yoma.  In  view of the fact that both victors are
NeraTel’s established customers, we expect the latter to emerge as the sole
Singapore  winner  in  the  Myanmar  telco  battle.  Reiterate  BUY with an
unchanged TP of SGD0.79 as we look forward to a strong year ahead.

The  only  Singapore winner in Myanmar’s telco battle? While
SingTel and
Yoma  have  lost the battle for Myanmar’s telco licences, NeraTel may score
an  indirect  victory.  This  is  because  our checks show that both of the
Myanmar  license  winners  -  Telenor  and Ooredoo - are NeraTel’s existing
customers. NeraTel is currently providing services to them in Indonesia and
in  Malaysia.