This article first appeared in The Edge Financial Daily, on October 7, 2015.

XOX Bhd (-ve)

ACE market-listed XOX (Fundamental: 1.4/3, Valuation: 0.2/3) was slapped with an unusual market activity query by Bursa on October 5, after its shares surged 39% to 1-year high of 12.5 sen. 

The company said it was unaware of any corporate development that could have led to the rise. Its shares closed unchanged yesterday.

Riding on Celcom’s network, the mobile virtual network operator offers full-fledged mobile services. It also has a SIM-free second mobile number app for calling and texting.

For FYJun2012-FY2014, XOX alternated between profits and losses. In FY2015, it returned to the black with a net profit of RM0.8 million, on the back of a 59% increase in sales to RM90.9 million.

Last October, XOX proposed several corporate exercises, including a share capital reduction and share issuance to raise funds, which have yet to be completed. The stock trades at a high P/E of 51.4 times.