Stock With Momentum: BTM Resources



-A +A

BTM Resources Bhd (-ve)

SHARES of BTM (Fundamental: 1.65/3, Valuation: 0.9/3) have surged 25.8% to 19.5 sen since posting 1Q2015 earnings results. Net loss narrowed from RM1.7 million in 1Q2014 to RM773,000 in 1Q2015, on the back of a 56.8% increase in sales to RM2.9 million.

BTM is involved in logging, sawmilling, and trading of sawn timber, logs and plywood. Domestic market accounts for 50% of sales, with the balance from export markets - mainly to Australia and Korea. It has a poor financial track record, incurring losses for the past ten years.

Last Thursday, one of its substantial shareholders, Yong Tu Sang, disposed of 1 million warrants or 3.07% stake on the open market for 7 sen each. With the disposal, Yong, who is also the Managing Director cum CEO of BTM, still holds a total of 25.2% of the warrants. 

The stock trades at 0.77 times book value. Historically, the company has not paid out any dividends. 


This article first appeared in The Edge Financial Daily, on June 10, 2015.