Goodway Integrated Industries Bhd (+ve)

SHARES in Goodway Integrated Industries Bhd (fundamental: 0.15/3, valuation: 0.3/3) was highlighted as a “red flag” stock with momentum by our proprietary algorithm yesterday, suggesting that investors should exercise extra caution while trading in its shares.

This was the sixth time the stock triggered our momentum algorithm since it began tracking. The stock closed up 11 sen at 73.5 sen yesterday, after 3.19 million shares were traded, compared with its 200-day average volume of 323,084 shares.

Goodway is involved in the manufacture and distribution of rubber compounds and related products, as well as property development.

For the first half of the financial year ended June 30, 2016 (1HFY16), the group reported a net loss of RM3.21 million compared with a net loss of RM2.86 million a year ago, mainly due to an impairment loss of receivables amounting to RM1 million.

Revenue for 1HFY16 was RM84.73 million, 12.1% lower than its 1HFY15 revenue of RM96.35 million.