Stock With Momentum: NWP Holdings

This article first appeared in The Edge Financial Daily, on March 9, 2018.
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NWP Holdings Bhd (+ve)
SHARES in NWP Holdings Bhd (fundamental: 0.75/3, valuation: 0.3/3) which triggered our momentum algorithm yesterday for the first time this year, closed 1.5 sen or 6.82% higher at 23.5 sen.

It saw 52.64 million shares traded, above its 200-day average volume of 1.7 million shares.

On Monday, NWP said it had inked a heads of agreement (HoA) with LBS Bina Group Bhd to jointly undertake a development project relating to the transformation of the 264-acre (106.84ha) Zhuhai International Circuit (ZIC) in China.

Under the HoA, NWP said LBS will take up a 73.7% stake in NWP’s enlarged share base for RM93.5 million in cash, to part-fund the ZIC development.

The subscription price is 8.5 sen a share, which represents a discount of about 51.4% to its current trading price.