This article first appeared in The Edge Financial Daily on June 11, 2018

Asdion Bhd (-ve)

SHARES in loss-making Asdion Bhd (fundamental: 0.6/3, valuation: 0/3) triggered our proprietary momentum algorithm for the 13th time this year. The stock closed 0.5 sen or 1.72% higher at 29.5 sen. A total of 33.87 million shares changed hands, exceeding the counter’s 200-day average volume of 3.36 million shares.

On May 28, Asdion aborted its plan to undertake a private placement exercise, which would have seen it issuing up to 10% of its share capital to new investors, to raise around RM2.47 million. Separately, on May 31, See Poh Yee resigned as its independent and non-executive director due to work exigency.

Asdion posted a lower net loss for the fourth quarter ended March 31, 2018, at RM870,000 from a net loss of RM4.44 million a year ago. Revenue, however, declined to RM869,000 from RM1.8 million on the back of low performance from business activities in stevedoring, logistics and engineering.

The ACE Market-listed counter is trading at 3.61 times its book value, giving it a market capitalisation of RM34.3 million.