Stock With Momentum: Aturmaju Resources

This article first appeared in The Edge Financial Daily, on March 6, 2019.
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Aturmaju Resources Bhd (-ve)
TRADING of shares in Aturmaju Resources Bhd (fundamental: 2.55/3, valuation: 0.3/3) triggered our Stocks with Momentum algorithm yesterday for the fifth time this year.

The stock closed six sen or 14.29% higher at 48 sen, after 7.45 million shares were traded, versus the counter’s 200-day average volume of 251,859.5 shares. The group’s market capitalisation stood at RM36.6 million.

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

On Monday, Aturmaju said its technology arm ARB Development Sdn Bhd had inked a memorandum of understanding (MoU) with Perkasa Selalu Sdn Bhd to jointly develop an intelligence modern lifestyle project in Kuala Selangor. Under the MoU, valid for six months, ARB Development will provide smart home engineering system integration, procurement and commissioning for a proposed contract value of RM78 million.

As of yesterday, Aturmaju shares were trading at 1.37 times its net book value.