Stock With Momentum: Avillion

This article first appeared in The Edge Financial Daily, on December 3, 2018.
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Avillion Bhd (+ve)
Trading of shares in Avillion Bhd (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm last Friday for the first time this year.

The stock closed 1.5 sen or 5.66% higher at 28 sen, after 1.42 million shares were done, compared with the counter’s 200-day average trading volume of 179,341 shares.

On Nov 26, the group announced that it narrowed its net loss to RM2.92 million for the second quarter ended Sept 30, from RM3.04 million a year ago, despite a 12% fall in revenue to RM29.08 million from RM32.95 million. The improved performance came as operating expenses fell, and as it recognised lower depreciation and amortisation as well as taxation.

But Avillion’s net loss for the half year ended Sept 30 expanded to RM7.22 million from RM4.84 million a year ago, as revenue slipped 7% to RM63.52 million from RM68.42 million, while it recognised higher finance costs and lower other operating income.