Stock With Momentum: Handal Resources

This article first appeared in The Edge Financial Daily, on June 26, 2019.
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Handal Resources Bhd (-ve)
Trading of shares in Handal Resources Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the second time this year. The stock closed down three sen or 6.32% at 44.5 sen yesterday, with 19.92 million shares done, versus its 200-day average trading volume of 302,383 shares.

On June 24, Handal said its joint venture (JV) — Borneo Seaoffshore-Handal JV — had bagged a seven-year contract worth RM360 million from Petronas Carigali Sdn Bhd. The job entails providing water injection module supply on mobile offshore unit for mobile water injection facilities — package four. The contract commences in March 2020, with an extension option of three years. It said the contract is expected to contribute positively to its financial period ending June 30, 2019 and subsequently until the contract’s expiry.