Stock With Momentum: LTKM

This article first appeared in The Edge Financial Daily, on May 12, 2017.
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LTKM Bhd (-ve)

SHARES in LTKM Bhd (fundamental: 1.25/3, valuation: 0.8/3) triggered our momentum algorithm for the second time this year. The counter closed one sen or 0.55% higher at RM1.84 yesterday, with 791,600 shares traded. It only saw 56,471 shares in its 200-day average volume.

LTKM is involved in the production and sales of eggs, including Omega Plus eggs and investment in property development.

LTKM’s net profit fell 53.2% to RM2.04 million in the third financial quarter ended Dec 31, 2016 from RM4.34 million a year ago, on lower egg prices and higher expenses from the investment holdings segment. Revenue declined 4.76% to RM42.79 million from RM44.93 million.

For the nine month ended Dec 31, 2016, its net profit fell 11% to RM10.24 million from RM11.51 million. Revenue, however, grew 0.46% to RM129.24 million from RM128.65 million.

The stock currently trades at a trailing 12-month price-earnings ratio of 22.95 times.