This article first appeared in The Edge Financial Daily on May 31, 2017
Asia Bioenergy Technologies Bhd (+ve)
Shares in Asia Bioenergy Technologies Bhd (AsiaBio) (fundamental: 1.25/3, valuation: 0.3/3) triggered our momentum algorithm for the second time this year.
The counter closed unchanged at six sen yesterday, following trades of some 74.5 million shares, compared with its 200-day average volume of 11 million shares.
AsiaBio returned to the black in the fourth quarter ended March 31, 2017 (4QFY17), with a net profit of RM15.95 million, versus a net loss of RM9.27 million a year earlier, on marking to market its medium- to long-term investments.
Revenue, however, fell 36% to RM1.88 million from RM2.49 million, due to lower trading volume of marketable securities.
The stock is currently trading at 1.3 times its book value and has a trailing 12-month price-earnings ratio of 32.32 times.