Stock With Momentum: BTM Resources

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BTM-Resources_swm_theedgemarkets

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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. 

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