Stock With Momentum: Globetronics Technology

This article first appeared in The Edge Financial Daily, on August 2, 2018.
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Globetronics Technology Bhd (+ve)

TRADING of the shares in Globetronics (fundamental: 3/3, valuation: 1.7/3) triggered our momentum algorithm yesterday. The stock closed 4% or 10 sen higher at RM2.60, after about 7.45 million shares crossed.

In comparison, the group’s 200-day average volume is about 1.33 million shares.

The stronger buying momentum came after Globetronics recorded a 32% year-on-year growth in its net profit for the second quarter ended June 30, 2018 (2QFY18) to RM9.34 million from RM7.06 million, mainly on higher volume loadings of products from certain customers and a foreign exchange (forex) gain of RM710,000.

In comparison, it recorded a forex loss of about RM1 million in 2QFY17.

Globetronics, which manufactures sensors and digital products for the semiconductor and electronics industries, saw the pickup in volume loadings on the back of the mass production of new products since 3QFY17.