Stock With Momentum: Aturmaju Resources

This article first appeared in The Edge Financial Daily, on January 18, 2019.
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Aturmaju Resources Bhd (-ve)

Aturmaju Resources Bhd (fundamental: 1.65/3, valuation: 0.3/3), which made it into our Stocks with Momentum list for the first time this year, closed 14 sen or 30.77% higher at 59.5 sen, with a market capitalisation of RM39.99 million.

A total of 985,400 shares were done, versus the counter’s 200-day average trading volume of 69,899.5 shares.

The company is a manufacturer of wood products and is also involved in hire of scows and tug boats.

On Wednesday, Aturmaju’s subsidiary ARB Development Sdn Bhd inked a memorandum of understanding (MoU) with Yes’s Comm Enterprise Sdn Bhd to collaborate in a new retail business model and to supply the latter’s five retail outlets with an inventory tracking system.

The MoU would be valid for a month or until a definitive agreement is signed. Aturmaju indicated the formalising of an agreement could result in a deal providing RM20 million in annual revenue for the company.