Stock With Momentum: Nova MSC

This article first appeared in The Edge Financial Daily, on July 5, 2018.
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Nova MSC Bhd (+ve)

SHARES in Nova MSC Bhd (fundamental: 1.85/3, valuation: 0/3) has triggered our proprietary momentum algorithm for the second time since January this year. The stock closed unchanged at 16.5 sen with a volume of 85.87 million shares, exceeding its 200-day average volume of 6.71 million shares.

The application software provider secured a 20-month contract from Singapore’s Public Utilities Board to provide building information modelling services worth S$5.17 million (RM15.4 million) in June this year. In a filing with Bursa Malaysia dated June 8, 2018, Nova MSC said it would be maintaining the project for 20 months thereafter.

The group said the contract was awarded to its wholly-owned unit, novaCITYNETS Pte Ltd. It added that the contract will contribute positively to its overall results for the financial year ending March 31, 2019. At its last price yesterday, Nova MSC was trading at 2.83 times its book value, with a market capitalisation of RM124 million.