Stock With Momentum: K-One Technology Bhd

This article first appeared in The Edge Financial Daily, on July 13, 2018.
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K-One Technology Bhd (+ve)
TRADING of the shares in K-One Technology Bhd (fundamental: 2.25/3, valuation: 0.3/3), which provides technical design services, triggered our proprietary momentum algorithm yesterday for the third time this year.

The stock closed 0.5 sen or 2.56% higher at 20 sen, with some 6.14 million shares traded, exceeding its 200-day average volume of 738,130 shares.

In the first financial quarter ended March 31, 2018, K-One posted a net profit of RM21,000 compared to a net loss of RM8.81 million a year ago driven by the share of profit contributed by its associate company following the completion of the acquisition of a 30% stake in AHM Consultancy & Security Services Sdn Bhd in January.

Revenue for the quarter fell 5.9% to RM18.79 million from RM19.97 million due to the steep upward trajectory of the ringgit against the US dollar.

At its last price, K-One was trading at 1.2 times its book value.