Stock With Momentum: Eduspec Holdings

This article first appeared in The Edge Financial Daily, on April 16, 2019.
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Eduspec Holdings Bhd (+ve)

TRADING of shares in Eduspec Holdings Bhd (fundamental: 0.15/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the first time this year.

The stock closed one sen or 33.33% higher at four sen, after 92.41 million shares were traded, versus its 200-day average volume of 4.03 million shares. The group’s market capitalisation stood at RM44.07 million.

Eduspec is principally engaged in providing IT literacy materials for primary and secondary schools which is mainly done through its subsidiary Dynabook Computer Centre.

On Jan 31, it proposed to undertake a capital reduction to cancel RM107.31 million of its paid-up share capital to offset accumulated losses. With this, it hopes to transform its financial position from an unaudited accumulated loss of RM54.44 million as at Sept 30, 2018, to RM62.83 million in retained earnings.

As of yesterday, Eduspec shares were trading at 0.56 times its net book value.