Stock With Momentum: EKA Noodles

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This article first appeared in The Edge Financial Daily, on February 2, 2016.


EKA Noodles Bhd (-ve)

SHARES in EKA Noodles (Fundamental: 0.35/3, Valuation: 0/3) continued its uptrend on Friday, closing one sen or 6.67% higher at 16 sen. The stock was heavily traded with 22.89 million compared with its 200-days average volume of 1 million shares.

The company primarily is involved in manufacturing and marketing of all types of rice and sago sticks (vermicelli) and other related products.

In the last five financial years, the company only managed to register a slight profit of RM0.7 million in 2013, while making losses for the others. Its latest quarter report ended Sept 30, 2015 showed a loss of RM1.65 million.

On Jan 18, the company announced its memorandum of understanding with Anhui HuiJia Biological Science and Technology Co Ltd for the transfer of technology for the production of liquid fructose. The board of directors is confident the new production will provide an additional source of steady income if successfully carried out.