This article first appeared in The Edge Financial Daily on October 23, 2018

Grand Hoover Bhd (+ve)

Trading of shares in Grand Hoover Bhd (fundamental: 0.55/3; valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year.

The stock slid 2.5 sen or 3.82% at 63 sen, after 405,500 shares were done, versus the counter’s 200-day average trading volume of 111,703 shares. For the fourth quarter ended June 30, 2018 (4QFY18), it reported a net loss of RM513,000 versus a net profit of RM2.92 million — despite revenue rising 16% to RM13.6 million from RM11.77 million a year ago — as it incurred higher costs and expenses.

In the full year, it fell into the red with a net loss of RM1.79 million versus a net profit of RM405,000 a year ago, due to lower revenue from its property development division and an impairment made on trade receivables in the trading division; full-year revenue declined 3% to RM52.16 million from RM54.02 million after it deferred the launching of property development projects.

Grand Hoover is currently trading at 0.54 times its net book value.