Stock With Momentum: Cheetah Holdings

This article first appeared in The Edge Financial Daily, on August 14, 2018.
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Cheetah Holdings Bhd (-ve)

TRADING of shares in Cheetah Holdings Bhd (fundamental: 1.4/3, valuation: 1.2/3) triggered our stocks with momentum algorithm yesterday for the first time this year.

The stock closed up 6.5 sen or 15.12% to 49.5 sen, with 1,000 shares done versus the counter’s 200-day average of 8,404 shares.

For the third financial quarter ended March 31, 2018, the group’s net loss widened to RM3.12 million from RM3 million a year ago, impacted by a softer market as well as sales promotional campaigns that were carried out on thin margins.

Quarterly revenue was slightly lower at RM27.86 million from RM28.04 million a year ago.

For the cumulative nine months, net loss widened to RM5.55 million from RM3.33 million, while revenue was lower by 7% to RM79.81 million from RM85.89 million a year ago.

Cheetah is currently trading at 0.45 times its net book value.