Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on May 22, 2018

GSB Group Bhd (-ve)

SHARES in GSB Group Bhd (fundamental: 0.15/3, valuation: 0.3/3) triggered our proprietary momentum algorithm yesterday for the first time this year.

The stock closed 2.5 sen or 18.52% higher at 16 sen, bringing a market capitalisation of RM81.8 million. A total of 74.7 million shares changed hands, higher than the counter’s 200-day average volume of 674,230 shares.

Last Friday, Javawana Sdn Bhd, a major shareholder of GSB, made a conditional mandatory general offer (MGO) of 13 sen a share for the remaining 313.1 million shares in the company which it did not own.

Javawana previously purchased 127 million GSB shares, representing 24.05% of the company, for RM16.51 million. Its purchase boosted its stake to 40.71%, triggering the MGO.

At the current share price, the group is trading at 1.62 times its book value.

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