Stock With Momentum: Fitters Diversified

This article first appeared in The Edge Financial Daily, on October 4, 2018.
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Fitters Diversified Bhd (-ve)
TRADING of shares in Fitters Diversified Bhd (fundamental: 0.75/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this year. The counter closed up one sen or 2.47% at 41.5 sen, with a market capitalisation of RM182.85 million. A total of 31.04 million shares were traded, versus the stock’s 200-day average trading volume of 730,992.5 shares.

For the second quarter ended June 30, 2018 (2QFY18), Fitters posted a net profit of RM1.8 million compared to a net loss of RM2.01 million it incurred in the same quarter last year.

Quarterly revenue rose 26.2% to RM74.43 million from RM59 million in 2QFY17. This, Fitters said, was mostly contributed by the significant improvement in the property development and construction division, which saw the work progress of the project management and construction contract obtained in the fourth quarter of 2017.

As at yesterday, Fitters shares were trading at 0.54 times their book value.