This article first appeared in The Edge Financial Daily on August 27, 2019

MMAG Holdings Bhd (-ve)
TRADING of shares in MMAG Holdings Bhd (fundamental: 1.65/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the second time this year. The stock fell 0.5 sen to 25.5 sen, with 580,600 shares done, compared with the average 250,313 shares recorded in the past 200 days.

On Aug 23, the group said that it had acquired eight pieces of land in Jelutong, Johor Baru for RM9.39 million cash, which will be funded by internally generated funds and external borrowings. The sale and purchase agreement was entered into between MMAG’s unit MGudang Sdn Bhd and Liangsiang Capital Sdn Bhd. It said the acquisition is intended to facilitate the future courier and logistics storage and warehousing needs of the group’s unit Line Clear Express & Logistics Sdn Bhd, in the area of Gelang Patah, Johor. With the proposed acquisition, the group’s warehouse area will increase from approximately 601,000 sq ft to 726,000 sq ft.