Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on November 2, 2018

Nextgreen Global Bhd (-ve)
TRADING of shares in Nextgreen Global Bhd (fundamental: 0.8/3, valuation: 0.3/3) — a company involved in printing activities and manufacturing of pulp and paper products — triggered our proprietary momentum algorithm yesterday for the third time since Oct 17.

The stock finished the day three sen or 6.12% higher at 52 sen, with a market capitalisation of RM236.08 million. A total of 27.71 million shares were crossed, more than 10-fold from the counter’s 200-day average volume of 2.27 million shares.

Nextgreen, which has been loss-making for three straight years since its financial year ended June 30, 2016 (FY16), wrote in its annual report released on Wednesday that its printing business should improve in FY19, due to higher government orders and positive enquiries from other overseas markets.

It also noted the “risk that the group may counter cash flow difficulty if the situation persists”, as cash and bank balances reduced to RM600,000 in FY18, from RM1.49 million the year before, having spent on the development of land and deposits for plant and machinery.

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