Otto Marine (G4F.SG) +11.1% at over 4-week high of $0.40 in active trade, retracing bulk of 13.3% decline since Aug 5, when shipbuilder reported 40.4% on-year fall in 2Q10 earnings to $16.7 million on weaker revenue, FX loss, according to Dow Jones.

Besides disappointing June-quarter results, recent price weakness also attributed to concerns of potential order cancellations by some clients.

“The risk-reward appears favourable,” says Standard Chartered Equity Research, which has Outperform call with $0.52 target, “the current concerns which have impacted the shares are mostly overblown. Negotiations for new-build vessels are progressing and any new orders announced would be a significant catalyst.”

With shares now resting around 100-day moving average level, next resistance tipped at $0.425 (Aug 5 high).