Asdion Bhd
Asdion (Fundamental: 1.65/3.0, Valuation: 0/3.0) was picked by our momentum algorithm for the third time since Dec 29, 2014. However, this was the first time its share price exhibited downward momentum with rising volume, closing down 6.4% at 59 sen. Asdion provides integrated business and operations solutions, mainly to the hospitality, recreational, supply chain logistic and data services businesses in Malaysia, Singapore and China.

It is likely seen as a beneficiary of the GST-compliant software market worth RM1.7 billion. Nevertheless, we prefer other software solution providers as an exposure to this lucrative sector.

The major shareholder of Asdion is Tey Por Yee (22.0% stake), who has stakes in several listed companies, including Protasco and Nexgram Holdings. Tey was recently embroiled in a boardroom tussle at Protasco.

The company has been in the red since FY Dec 2009. It also does not pay dividend. The stock is trading at price-to-book ratio of 2.8 times.  

This article first appeared in The Edge Financial Daily, on January 28, 2015.