KUALA LUMPUR (Aug 7): theedgemarkets.com has highlighted three stocks with momentum at the close of the afternoon market today.
Out of the three stocks, only Hibiscus Petroleum Bhd shows a positive momentum, while both PJ Development Holdings Bhd and Xidelang Holdings Ltd show negative momentum.
The stocks are:
Hibiscus Petroleum Bhd (fundamental: 1.7; valuation: 1.5) up 1 sen at 88 sen.
PJ Development Holdings Bhd (fundamental: 1.9; valuation: 3) unchanged at RM1.55.
Xidelang Holdings Ltd (fundamental: 1.3; valuation: 1.5) up 1 sen at 18.5 sen.
The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.
This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. The share price may move up or down from this point. But the “+ve” (suggesting a rising price trend on volume) and “-ve” (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time.
However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)