Stock With Momentum: Eden Inc Bhd

This article first appeared in The Edge Financial Daily, on July 31, 2018.
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Eden Inc Bhd (-ve)
TRADING of shares in Eden Inc Bhd (fundamental: 0.2/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year. The company saw 25.66 million shares traded compared to the counter’s 200-day average of 5.23 million. The stock rose one sen or 3.03% to close at 34 sen, leaving it with a market capitalisation of RM107.42 million.

Eden was last traded at 0.44 times its book value. It is an investment holding company which operates in the energy components, food and beverage, tourism and manufacturing segments.

The auditors of Eden indicated on May 7 the existence of significant material uncertainties during the course of their audit of the financial statements ended Dec 31, 2017 (FY17) may cast significant doubt on the group’s ability to continue as a going concern.

The company made a loss of RM2.82 million compared with a loss of RM6.2 million in the corresponding quarter in the previous financial year. This was despite revenue doubling to RM21.8 million from RM9.91 million.