Stock With Momentum: Cypark Resources

This article first appeared in The Edge Financial Daily, on February 19, 2019.
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Cypark Resources Bhd (-ve)
Trading of shares in Cypark Resources Bhd (fundamental: 1.3/3; valuation: 1.8/3) triggered our stocks with momentum algorithm yesterday for the first time this year.

The stock went up four sen or 2.4% to RM1.71 yesterday, with 1.4 million shares done, a big jump against its 200-day average of 262,576 shares.

On Dec 12, the group said it had bagged two contracts worth a combined RM450 million to build a solar photovoltaic energy generating facility in Sik, Kedah and another one at Empangan Terip, Negeri Sembilan.

Cypark said its wholly-owned subsidiary Cypark Ref Sdn Bhd had accepted the letters of award from Viva Solar Sdn Bhd for the project in Sik, and Cypark Estuary Solar Sdn Bhd for the Empangan Terip project on a turnkey basis.

Work on the two plants will commence on the date of notice issued by Viva Solar and Cypark Estuary Solar respectively and the time of completion is Aug 4, 2020.

Cypark is currently trading at 0.79 times its net book value.