Seksun

�� Seksun rose to an intra day high of 68 cents per share yesterday before closing at 65.5 cents (+7.5 cents) on 8.859mln shares, above its average of 1- 3 mln shares in the last 2-3 weeks on the back of takeover rumours. �� The company was queried by SGX for the significant rise in trading vol and share price yesterday. �� The company said that they are in confidential discussions in respect of a possible transaction, but added that there is no certainty that a binding agreement will be entered into between the parties. �� During the recent market carnage, the stock had hit a low of 57 cents per share, down from its July’07 high of 75 cents per share. �� During the last 3 months, the stock had hit a low of 55 cents per share and high of 75 cents per share. �� We had downgraded the stock to a HOLD on 13 Aug’07 (at 67.5 cents per share) as the stock has risen over 80+% from our initial buy recommendation and its forward PE of 10x only at a slight discount to MMI, Brilliant and Amtek’s takeover PE of 11x. �� Besides, looking at the takeover table on the next page suggest that most of the takeover news is likely in the price with maybe a small upside potential when the news is finally annnounced. Hence, we see no reason to change our HOLD