This article first appeared in The Edge Financial Daily on January 21, 2020

Notion VTec Bhd (-ve)
TRADING of shares in hard disk drive manufacturer Notion VTec Bhd (fundamental: 1.95/3, valuation: 1.4/3) triggered our proprietary momentum algorithm yesterday for the second time this month.

A total volume of 22.52 million shares were crossed, almost eight times its 200-day average of 2.83 million shares, before it closed eight sen higher at RM1.13, the highest since August 2017.

Notion VTec told Bursa Malaysia last Thursday the company plans to undertake a bonus issue of up to 188.08 million new shares on the basis of one bonus share for every two existing units. It also intends to seek shareholders’ approval at the upcoming annual general meeting to purchase its own shares.

The company said it had been offered a final amount of RM22.22 million from its insurer for the business interruption loss settlement in relation to a fire incident at its facility in 2017. This is on top of the RM159.37 million claim offered in November 2018.