Stock With Momentum: Censof Holdings

This article first appeared in The Edge Financial Daily, on December 18, 2019.
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Censof Holdings Bhd (+ve)
TRADING of shares in Censof Holdings Bhd (fundamental: 0.55/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the third time this year.

The stock closed half a sen or 4% higher at 13 sen, with 4.93 million shares done, compared with the average of 309,715 shares recorded in the past 200 days. The stock has been trading sideways throughout the past 12 months.

On Oct 2, Censof bagged a RM34.77 million contract from the Inland Revenue Board of Malaysia (IRB) to provide licence renewal, software support and maintenance services for data warehouse systems of the board.

Censof said its wholly-owned subsidiary Century Software (M) Sdn Bhd had accepted a letter of award from the IRB to undertake the three-year project from Jan 1, 2020 to Dec 31, 2022.

Censof was of the view that the contract would contribute positively to its earnings for the period.