APFT Bhd (+ve)
APFT (Fundamental: 0.2/3, Valuation: 0/3), an operator of flight training academy, was ‘Red Flagged’ by our system, due to its low fundamental score, suggesting that investors should exercise caution while trading.
The stock was last picked by our momentum algorithm on June 9 at 20 sen. It was picked again yesterday as volume traded rose 54.1% to 21.2 million shares. The stock closed 2.4% higher at 21 sen.
The company, which is undergoing a private placement to raise up to RM23.6 million, initially allocated 40.6% of the proceeds to purchase oil and gas equipment with intention to bid for the Refinery and Petrochemical Integrated Development (RAPID) project by Petronas.
However, due to the current weak oil prices and the delay in RAPID project, APFT decided to revise its utilization plans. Accordingly, 60.0% of the proceeds will be used for working capital, 25.4% for aircraft purchase, 13.6% for loan repayment and the balance 1% for proposal expenses.
This article first appeared in The Edge Financial Daily, on June 18, 2015.