This article first appeared in The Edge Financial Daily, on November 26, 2015.
Oriented Media Group Bhd (-ve)
OMEDIA (Fundamental: 2.25/3, Valuation: 0/3) triggered our momentum algorithm for the fourth time this month. The stock saw a pick-up in trading volume since October 19, rising a whopping 181.6% to close at 53.5 sen yesterday.
The company, which has been in the red since FY2004, posted a small net profit of RM2,737 in 1QFYJune2016, compared to a net loss of RM13.1 million in 1QFY15. This was attributed to the improved performance of its e-commerce business in China.
To recap, Omedia provides information technology related products and services for the maritime port, shipping and logistics industry. It has also expanded into the sportswear industry via an online sportswear trading platform, operated by its wholly-owned subsidiary in China — Fujian Accsoft Technology Development Co Ltd — which commenced in April 2015.
Last Tuesday, Bursa Malaysia has also approved Omedia’s application for extension of time up to February 26, 2016, to complete its rights issue with warrants exercise, raising up to RM42.7 million.