Stock With Momentum: M-Mode Bhd

This article first appeared in The Edge Financial Daily, on August 21, 2018.
-A +A

M-Mode Bhd (-ve)
TRADING of the shares in M-Mode Bhd (fundamental: 1.2/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this year. The group saw 2,447,000 shares traded compared with its 200-day average of 946,699.

For the quarter ended May 31, 2018, the mobile media content and data application company recorded a net loss of RM7.98 million on the back of RM10.55 million in revenue. This was mainly due to impairment losses on development costs and impairment of goodwill on consolidation in the current quarter. The group said for the remaining quarters, it will be focusing on working together with mobile operators to expand their reach, while continuously investing in mobile Internet business services. Note that the company changed its financial year end from Dec 31 to May 31.

The stock rose two sen or 5.8% to close at 36.5 sen, giving it a market capitalisation of RM59.39 million. M-Mode was last traded at 0.85 time its book value.