This article first appeared in The Edge Financial Daily on February 18, 2019
Can-One Bhd (-ve)
Trading of shares in Can-One Bhd (fundamental: 0.8/3, valuation: 1.8/3) triggered our momentum algorithm last Friday for the third time this year.
The stock closed unchanged at RM2.68, with 298,000 shares done, much higher than its 200-day average of 69,451 shares.
At the group’s extraordinary general meeting last Thursday, the shareholders agreed to go ahead with the proposed mandatory general offer for its 32.9%-owned associate Kian Joo Can Factory Bhd at RM3.10 per share.
This is despite concerns about Can-One’s risk of gearing up to take control of Kian Joo, whose earnings and dividend payouts have been declining in recent years.
Can-One is currently trading at 0.63 times its net book value.