This article first appeared in The Edge Financial Daily, on May 26, 2016.
LEADER Steel Holdings Bhd (-ve) Red Flag
LEADER Steel Holdings Bhd (fundamental: 0/3; valuation: 0.9/3) has been highlighted as a “red flag” Stock With Momentum by our proprietary algorithm, suggesting that investors should exercise extra caution while trading. This was also the second time it triggered our momentum algorithm this month.
The stock climbed 3.5 sen or 11.48% to 34 sen yesterday, after 1.87 million shares were traded, compared with its 200-day average volume of 43,700 shares.
Leader Steel’s net profit jumped 64.27% to RM984,000 in the first financial quarter ended March 31, 2016, from RM599,000 a year ago, due to a higher profit margin as a result of higher selling prices in the steel pipes segment. Revenue fell 32.72% to RM37.01 million from RM55.01 million, due to the decrease in the trading of minerals.
The company is engaged in the trading and processing of minerals such as iron ore, manganese, mill scales and slags. It also manufactures a range of steel products.
LSTEEL (9881) - Stock With Momentum: Leader Steel Holdings
http://www.theedgemarkets.com/my/article/stock-momentum-leader-steel-holdings?type=Stock%20with%20Momentum
