Stock With Momentum: AHB Holdings

This article first appeared in The Edge Financial Daily, on July 14, 2017.
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AHB Holdings Bhd (-ve)
SHARES in AHB Holdings Bhd (fundamental: 1.9/3, valuation: 0.2/3) triggered our momentum algorithm for the third time this month. Its share price dropped 0.5 sen or 1.33% at 37 sen.  8.45 million shares were traded, versus its 200-day average trading volume of 1.215 million shares. There has been a surge of interest in the shares of the office furniture manufacturer and distributor since the beginning of the month after it was traded at 24.5 sen on July 3. The stock touched a five-year high of 38 sen on July 12, after it was traded in the range of 16 sen to 39 sen over a year. It is unclear what sparked the interest in the company’s shares as it has not made any significant announcements to the exchange since announcing its fourth-quarter results in May.

For the fourth quarter ended March 31, 2017, AHB posted a net loss of RM513,000 versus a net profit of RM514,000 a year earlier. For the full year, its net profit fell 70% to RM548,000 from RM1.83 million in the previous year. 

AHB trades at 1.99 times its net book value.