Stock With Momentum: Negri Sembilan Oil Palms

This article first appeared in The Edge Financial Daily, on December 31, 2019.
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Negri Sembilan Oil Palms Bhd (-ve)
TRADING of shares in Negri Sembilan Oil Palms Bhd (NSOP) (fundamental: 1.2/3, valuation: 1.2/3) triggered our momentum algorithm despite the shares closing unchanged at RM3.60 yesterday.

Year to date, NSOP shares have gained 12.5% from RM3.20 on Jan 2 this year. At the current share price, NSOP has a market capitalisation of RM252.73 million.

According to its latest quarterly report, NSOP incurred a net loss of RM1.45 million for the third quarter ended Sept 30, 2019, compared to a net profit of RM1.61 million a year ago, as average selling prices of fresh fruit bunches, crude palm oil, and palm kernel were substantially lower.

Quarterly revenue also declined 10.4% to RM13.05 million, from RM14.57 million previously.