Stock With Momentum: Globetronics Technology

This article first appeared in The Edge Financial Daily, on July 16, 2018.
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Globetronics Technology Bhd (-ve)

TRADING in the shares of semiconductor-based products manufacturer Globetronics Technology Bhd (fundamental: 3/3, valuation: 1.7/3) triggered our momentum algorithm for the first time this year.

The stock closed up 16 sen or 7.02% higher at RM2.44 last Friday, after 4.84 million shares were traded, compared with its 200-day average trading volume of 674,022 shares.

It is unclear what was driving the optimism in the group’s shares as it has not made any significant announcements to Bursa Malaysia after declaring a single-tier interim and a special dividend of one sen and two sen per share respectively for the financial year ending Dec 31, 2018, payable on July 11.

The group announced on April 24 its net profit grew 3.25 times to RM15.19 million in the first quarter ended March 31, 2018, from RM4.67 million a year ago, as revenue jumped 73.6% to RM86.49 million from RM49.83 million.