This article first appeared in The Edge Financial Daily on February 27, 2020

JAG Bhd (-ve)
TRADING of shares in JAG Bhd (fundamental: 1.25/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the third time this month.

The total waste management company’s counter closed unchanged at 4.5 sen, though it was heavily traded with some 41.97 million shares done, over 21 times its 200-day average trading volume of 1.96 million shares.

Yesterday, JAG announced that its net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) jumped sixfold to RM2.53 million from RM415,000 for 4QFY18, thanks to higher commodity prices and sales of high-purity commodity products. The stronger quarterly earnings came despite a 20% fall in revenue to RM36.96 million from RM44.89 million.

However, the group still incurred a net loss of RM11.9 million for FY19, versus a profit of RM1.69 million for FY18, as revenue declined to RM139.52 million from RM154.41 million.