This article first appeared in The Edge Financial Daily on August 20, 2019

Mieco Chipboard (-ve)

Mieco Chipboard Bhd (fundamental: 0/3, valuation: 0.9/3), which made it into our Stocks with Momentum list yesterday for the second time this year, closed 2.5 sen or 8.2% higher at 33 sen.

The counter saw 6.39 million shares done, compared with the average 832,875 shares recorded in the past 200 days.

On May 30, the group said its external auditor Deloitte PLT had included a material uncertainty related to the going concern in respect of its financial statements for the financial year ended Dec 31, 2018 (FY18).

The external auditor said the group’s net loss of RM60.6 million for FY18 and current liabilities had exceeded its current assets by RM75.5 million, and that the material uncertainty might cast doubt on the group’s ability to continue as a going concern.

In response, Mieco said it had adequate banking facilities to support its working capital requirements, while various measures were being taken to improve its financial position and return to profitability.