Stock With Momentum: Asdion

This article first appeared in The Edge Financial Daily, on May 2, 2018.
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Asdion Bhd (-ve)
SHARES in Asdion Bhd (fundamental: 0.75/3, valuation: 0/3) has triggered our proprietary momentum algorithm for the 11th time since January this year.

The stock closed 6.5 sen or 16.05% higher at 47 sen with a volume of 19.19 million shares, exceeding its 200-day average volume of 2.16 million shares.

Asdion provides business solutions.

For its third quarter ended Dec 31, 2017, Asdion’s net loss shrank to RM380,000 from RM1.26 million a year ago while its revenue fell 60.5% to RM851,000 from RM2.16 million.

The lower revenue in the current year to date compared with the preceding year corresponding quarter mainly resulted from the disposal of its loss-making IT businesses subsidiary which had contributed RM2.53 million in the preceding year.

At the current share price, Asdion is trading at 5.28 times its book value. It closed with a market capitalisation of RM55.23 million on Monday.