Stock With Momentum: London Biscuits Bhd

This article first appeared in The Edge Financial Daily, on December 13, 2018.
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London Biscuits Bhd (-ve)
TRADING of shares in London Biscuits Bhd (fundamental: 0.25/3, valuation: 1.7/3) triggered our momentum algorithm yesterday for the seventh time this year since Aug 6.

At the closing bell yesterday, its share price settled two sen or 3.23% higher at 64 sen, giving it a market capitalisation of RM131.3 million. A total of 9.6 million shares were traded versus the 200-day average trading volume of 1.3 million shares.

On Nov 30, in announcing its fourth-quarter results, the company guided that the additional capacity of its potato chip production line would facilitate new business opportunities to be secured, and that it would be introducing a new premium cake product by year end.

The group aims to strive to ensure that it continues to perform positively for the financial year ending Sept 30, 2019 (FY19) as FY18 was a challenging year.

London Biscuits is now trading at 0.31 times its net book value.