Stock With Momentum: Asia Media Group

This article first appeared in The Edge Financial Daily, on April 27, 2018.
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Asia Media Group Bhd (+ve)

SHARES in Asia Media Group Bhd (fundamental: 2/3, valuation: 0.9/3), triggered our proprietary momentum algorithm yesterday for the first time since January.

The stock closed one sen or 12.5% higher at nine sen, giving it a market capitalisation of RM22.75 million.

The group returned to the black in the fourth quarter ended Dec 31, 2017 (4QFY17), posting a net profit of RM1.59 million compared to a net loss of RM4.91 million a year ago, on a revenue that was up 61.2% to RM3.7 million from RM2.3 million in 4QFY16.

On April 20, Asia Media announced that it and DPO Holdings Pte Ltd had mutually agreed to extend the completion period for the share sales agreement (SSA) to June 30, 2018. The SSA is to sell its entire equity interest in DPO, comprising 5 million shares, for RM4 million cash.

At the current share price, the group is trading at 0.85 times its book value.