This article first appeared in The Edge Financial Daily, on August 5, 2016.
Felda Global Ventures Bhd (+ve)
Shares in Felda Global Ventures Bhd (FGV) (fundamental: 0.75/3, valuation: 0.8/3) triggered our momentum algorithm for the second time, following trades of 21.7 million shares, compared to its 200-day average volume of 7.27 million. FGV dropped seven sen or 3.55% at RM1.90.
FGV was recently reported to be a target company, as a strategic investment company affiliated with the Tradewinds Group is said to be planning a stake purchase in the group.
This follows the abortion of FGV’s plan to acquire Indonesia’s PT Eagle High Plantations Tbk for US$680 million (RM2.75 billion), as the group said it would put a hold on all its mergers and acquisitions plans this year.
FGV currently trades at 1.14 times its net asset value. The group paid four sen dividend per share in 2015.