Stock With Momentum: SCGM

This article first appeared in The Edge Financial Daily, on June 20, 2018.
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SCGM Bhd (-ve)
SHARES in SCGM Bhd (fundamental: 1.5/3, valuation: 1.5/3) triggered our proprietary momentum algorithm yesterday for the first time this year.

The stock closed 10 sen or 5.62% higher at RM1.88, bringing it a market capitalisation of RM352.7 million.

A total of 1.89 million shares changed hands, exceeding its 200-day average volume of 272,690 shares.

SCGM’s net profit fell 22.7% to RM5.4 million in the third financial quarter ended Jan 31, 2018 from RM6.98 million a year ago, due to higher costs, depreciation charges and foreign exchange losses. Quarterly revenue, however, rose 16.2% to RM53.42 million from RM45.99 million, buoyed by higher sales demand for its plastic packaging products.

The stock is currently trading at 2.13 times its book value based on its latest traded price.