This article first appeared in The Edge Financial Daily on June 11, 2019

Dolomite Corp Bhd (-ve)
Trading of shares in Dolomite Corp Bhd (fundamental: 0/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the first time this year. A total of 8.34 million shares were crossed yesterday — compared with the stock’s 200-day average trading volume of 156,451 shares — before the counter closed one sen up at 19.5 sen.

Last week, Dolomite announced its subsidiary was disposing of all its equity interest in Dolomite Granite Quarry Sdn Bhd (DGQSB) to Sunway Holdings Sdn Bhd for RM125 million. Dolomite said the proposed disposal allowed the company to unlock the value of its quarry assets and that RM92 million of the proceeds would be used for payment of the redemption sum to Maybank Labuan. The balance will be used to facilitate the fees involved in the transfer of pieces of land, to settle debts with creditors of DGQSB, paying income tax and royalty payable, among others.