Solid Automotive marches to another record high

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KUALA LUMPUR (Oct 30): Automotive-component trader Solid Automotive Bhd share price marches to another record high today, hitting RM1.06 this morning.

At 11am, its share price went up six sen or 6.1% to RM1.06 with some 1.58 million shares changed hands. The stock, which made its debut in September last year, has gained 77% against its initial offer price of 60 sen.

Solid Automotive the Stocks With Momentum picked by TheEdge Research yesterday afternoon.

As reported in The Edge Financial Daily today, TheEdge Research pointed out Solid Automotive’s expansion abroad would help to enhance its sales base.

According to TheEdge Research, exports account for about 40% of its business, while the remainder 60% was generated in Malaysia and Singapore. It exports to the Middle East and Africa.

However, TheEdge Research cautioned investors of the geo-political risks in the Middle East.  

In its latest financials, the company’s net profit soared 92.3% year-on-year to RM2.2 million on the back of higher revenue of RM31.5 million in the first quarter ended July 31, 2014.

 Technical reading wise, according Kenanga Research, the stock has broken two immediate resistance levels at RM1 and RM1.05. It pegs the next resistance at RM1.08.

 Meanwhile, the immediate support level for Solid Automotive share price is at 92 sen.