KUALA LUMPUR (Nov 12): Borneo Oil Bhd, one of the companies tagged by The Edge Research as a "stock with momentum", rose 0.5 sen or 0.53% to 94.5 sen as at 10.16am today with 609,000 shares done.

According to The Edge Research, Borneo Oil appeared to have attracted much investor interest following the company’s announcement it was venturing into alluvial gold mining in Pahang.

Borneo Oil had also announced a capital reduction and private placement exercise that saw the entry of new substantial shareholder Tan Sri Lau Cho Kun. The Edge Research said Lau, who owns 23% in Borneo Oil, had caused a buzz among investors.

Borneo Oil Bhd derives a substantial 83% of its revenue from its fast food chain operations.

The company which also has an oil, gas and energy-related operations was tagged "a stock with momentum" by the research unit in a report carried by TheEdge Financial Daily today.

After fluctuating between profit and losses over the past five years, Borneo Oil Bhd managed to record a net profit of RM3.07 million in financial year ended January 31, 2014.
This compared with a net loss of RM8.09 million in the previous year.

The better results was, however, attributed to one-off gains. The gains were derived from an allowance for receivables written back of RM2.5 million and a procurement fee of RM6 million.