RH Petrogas (technical)

RH Petrogas (RHP): Counter took a 20% dive yesterday amid a slew of trading-negative news which had no fundamental bearing. Malaysian media reported that Sona Petroleum is not taking a stake in RHP, which triggered the selloff on top of traders taking profit to cover losses elsewhere. With its price collapsing to less than half of its conservatively-estimated TP, RHP is again trading at takeover levels. DMG firmly believe that the margin of safety at this level is extremely wide and that longer-term investors who can ride out the volatility stand to reap supernormal gains. OSK DMG reiterate its BUY rating with TP $1.33.