Stock With Momentum: Atta Global

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This article first appeared in The Edge Financial Daily, on March 17, 2017.


Atta Global Group Bhd (-ve)
SHARES in Atta Global Group Bhd (fundamental: 1.25/3, valuation: 2/3) triggered our momentum algorithm for the first time since October last year. The counter closed four sen or 3.7% higher at RM1.12 yesterday, with 622,400 shares traded. In comparison, its 200-day average volume was only around 48,303 shares.

Atta is involved in the processing of steel coils, tubes, strapping, furniture, metal roofing, floor decking and perforated metal, and industrial recycling of scrap metal.

Atta turned around in the third quarter ended Dec 31, 2016, with a net profit of RM4.62 million, compared to a net loss of RM17,000 a year earlier. Revenue fell 6.96% to RM28.06 million from RM30.16 million.

For the nine-month period, its net profit surged more than five times to RM7.13 million from RM1.28 million. Revenue, however, fell 8.9% to RM80.63 million from RM88.52 million.

The stock currently trades at a trailing 12-month price-earnings ratio of 22.19 times and at 0.63 times book value.