Stock Trading Buy Call: JEL by CIMB-GK

CIMB-GK Research said it has initiated coverage of JEL Corp (Holdings) Ltd, a distributor of photographic and consumer electronic products, with a "trading buy" rating and a target price of 0.51 sgd. In a note to clients, CIMB-GK said JEL has an extensive network in growing markets such as Indochina, Africa and Latin America, and distributes a wide range of products, which has recently expanded to include Motorola mobile phones and Apple iPods. "We initiate coverage with a 'trading buy' rating and expect strong earnings and possible new distribution rights to act as near-term catalysts," CIMB-GK said. "Among the product segments, we believe that the wireless business presents the most exciting growth opportunities for JEL. Low handset penetration rates in these emerging markets, coupled with Motorola's strong brand name and wide range of models, offer good growth prospects." At 11.42 am, JEL was up 0.01 sgd or 2.6 pct at 0.39, on volume of 5.211 mln shares.