Southern Steel Bhd (-ve)
SHARES in Southern Steel Bhd (fundamental: 0/3, valuation: 0.6/3), which triggered our momentum algorithm last Friday for the fourth time this year, fell 9.4% to RM1.93.
This was despite the group’s return to the black in the financial results for the fourth quarter ended June 30, 2017 (4QFY17), with a net profit of RM5.57 million, compared to a net loss of RM112.7 million in the corresponding quarter a year ago. Revenue grew 10.8% to RM654.9 million from RM590.9 million.
The stock had rallied prior to the release of the results, when it reached an all-time high of RM2.13 last Thursday.
The group is currently trading at a trailing price-earnings ratio of 8.7 times, with a market capitalisation of RM828.99 million. Year to date, the stock has gained 59.5%.
http://www.theedgemarkets.com/article/stock-momentum-southern-steel-1
