APFT Bhd (-ve)

APFT (Fundamental: 0.2/3, Valuation: 0.3/3) was ‘Red Flagged’ by our system, due to its low fundamental score, suggesting that investors should exercise caution while trading.

The stock was first picked by our momentum algorithm on March 10 at 15 sen. Since then, it has peaked at 21.5 sen before falling to a low of 17.5 sen. 

APFT was picked again yesterday, closing up 2.6% to 20 sen. This coincides with the company’s announcement of the fifth tranche of a private placement, involving 10 million new shares out of 118.11 million shares, which will be listed today. 

To recap, AFPT plans to raise a maximum of RM23.6 million through a private placement, of which 40.6% will be used to purchase oil and gas equipment, 25.4% for aircraft purchase and the rest for working capital and loan repayments. 

APFT, an operator of a flight training academy, intends to diversify into the oil and gas sector.

This article first appeared in The Edge Financial Daily, on June 9, 2015.