Melewar Industrial Group Bhd (+ve)
SHARES of Melewar Industrial Group (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm for the third time this month, after 1.9 million shares exchanged hands versus its 200-day average of 101,395 shares. Its shares closed up 1.5 sen or 5% to 31.5 sen yesterday.
For second financial quarter ended Dec 31 2015 (2QFY16), the company posted a net profit of RM3.5 million, reversing a net loss of RM3.6 million a year ago, thanks to the better spread between the average selling price and the average cost of raw materials consumed.
Revenue for the quarter, however, saw a 20% drop to RM146.9 million, due to a 23% decline in cold rolled subsidiary’s lower sales volume and a 10.3% decrease in average selling price.
The stock currently trades at a trailing 12-month P/E of 80.3 times and 0.23 times book value. No dividends were paid for the past three years.
MELEWAR (3778) - Stock With Momentum: Melewar Industrial Group http://www.theedgemarkets.com/my/article/stock-momentum-melewar-industrial-group
