Stock With Momentum: Berjaya Land

This article first appeared in The Edge Financial Daily, on January 9, 2019.
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Berjaya Land Bhd (-ve)
Trading in shares of Berjaya Land Bhd (fundamental: 0.2/3; valuation: 0.9/3), also triggered our proprietary momentum algorithm yesterday for the first time this year.

The stock closed up 2.5 sen or 9.26% at 29.5 sen, after 13.77 million shares were done, versus its 200-day average trading volume of 1.50 million shares.

The company is mainly in hotels, resorts, recreation development and vacation timeshare, property investment and development.

Last month, Berjaya Land said it plans to divest its entire stake in TPC Nghi Tam Village Ltd (TPC Village), which operates the five-star Intercontinental Hanoi West Lake Hotel, for 1,244.59 billion Vietnamese dong or RM222.18 million. The deal will result in an estimated gain of about RM192.33 million. Its wholly-owned subsidiary, TPC Development, owns 75% in TPC Village, while the remaining 25% is held by Vietnam-based Thang Long GTC joint stock company.

As at yesterday, Berjaya Land was trading at 0.36 times its book value.