Stock With Momentum: Atta Global Group

This article first appeared in The Edge Financial Daily, on June 28, 2017.
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Atta Global Group Bhd (+ve)
SHARES in Atta Global Group Bhd (fundamental: 2.3/3, valuation: 2/3), which triggered our momentum algorithm last Friday for the first time this year, closed four sen or 2.94% higher at RM1.40, valuing the company at RM139.58 million.

Some 2.83 million shares were traded, compared with their 200-day average volume of 198,089 shares.

The group, previously known as SMPC Corp Bhd, said in late March it was looking to raise as much as RM188.62 million, mainly for working capital or investment in an entirely new business.

It intends to raise the funds via the rights issue of irredeemable convertible preference shares to existing shareholders.

The minimum amount it could raise from the exercise is RM12 million. To ensure the minimum subscription is achieved, it has procured written irrevocable undertakings from two Atta directors-cum-shareholders to take up the requisite shares.

It is trading at 0.95 times its book value, with a 12-month price-earnings ratio of 7.19 times.