Ewein Bhd (-ve)
EWEIN (Fundamental: 1.55/3, Valuation: 1.1/3) has surged 78.0% to RM1.05 since it was first picked by our momentum algorithm on April 2.
Last Friday, the company clarified that it was not aware of any potential takeover offer nor received any takeover notice. It was responding to a news report, quoting unnamed sources, that Ewein could be the target of a reverse takeover, with the takeover price of between 90 sen and RM1.20.
Penang-based Ewein manufactures precision sheet metal fabricated parts and plastic injection moulding products. However, Ewein has diversified into property development, after earnings from its core business more than halved since 2010.
It owns a 60% stake in Ewein Zenith Sdn Bhd, a joint venture with Consortium Zenith BUCG Sdn Bhd, which will develop a 3.67 acre land in Penang with a GDV of RM800 million.
The stock trades at a high trailing 12-month P/E of 64.6 times and 2.02 times book.
EWEIN (7249) - Stock With Momentum: Ewein
http://www.theedgemarkets.com
