KUALA LUMPUR (May 8): Focus Lumber Bhd has been grossly oversold and about to bottom out in near term, as substantiated by oscillators, according to Hong Leong IB Research.

In a note today, the research house said it was targeting RM1.52 and RM1.64 for Focus Lumber, with a long term objective of RM1.70.

“However, immediate supports are at RM1.42 and RM1.39. Cut loss below RM1.37,” it said.

HLIB Research said Focus Lumber’s export markets contributed approximately 98% of the group’s total revenue.

Thus, it said the company’s top and bottom line could be boosted by strong US dollar.

“The group has net cash per share of 57 sen which is equivalent to 39% of its share price and attractive dividend yield of 5.5%,” it said.