Ntegrator

Ntegrator: +16.1% at S$0.036 amid gains in Myanmar plays, but investors likely should be cautious. The co's business is stable, as the telco industry constantly needs technological upgrades, CIMB says after a meeting with mgt. Note that 93.1% of Ntegrator's operations are in emerging Asean mkts, with mgt expecting a fixed-line-communications boom as those countries actively invest in network infrastructure. Add that Ntegrator is able to win contracts in Myanmar, despite Chinese competition offering similar services at cheaper prices, due to good relations with the military, adding it also has a first-mover advantage there. But it advises caution as the stock trades at 64.0X historical P/E. Technically, the stock appears overbought. Also question the basis for recent high valuations for the counter, seeing that only 1.1% of FY11 revenue was attributed to Myanmar, with FY11's main mkts SG and Thailand. Tip any rebounds toward $0.043 support-turned-resistance should be viewed as a chance to sell, with the stock potentially weakening toward $0.026-$0.028.