Merge Energy Bhd (-ve)
SHARES in Merge Energy Bhd (fundamental: 0.95/3, valuation: 0.3/3) rose another four sen or 4.62% to close at their multi-year high of 90.5 sen yesterday, with a market capitalisation of RM60.64 million.
Trading of the stock triggered our momentum algorithm for the 16th time since the beginning of October. A total of 7.5 million shares were crossed yesterday, higher than the counter’s 200-day average trading volume of 553,265 shares.
Last week, Merge Energy said it was disposing all 100% equity interest it owned in Arena Terbaik Sdn Bhd — which is in the business of providing repair and maintenance services and trading of parts and equipment for motor vehicles — for a nominal amount of RM1 to two individuals including a director of the group’s subsidiary.
Merge Energy acquired the loss-making Arena Terbaik in 2017 for RM50,000, as an effort to diversify into a segment to sustain the group’s current business set-up.