Stock With Momentum: Omesti Bhd

This article first appeared in The Edge Financial Daily, on January 15, 2020.
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Omesti Bhd (-ve)
TRADING of shares in Omesti Bhd (fundamental: 1.3/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the third time in the past year.

The counter closed up two sen or 3.77% at its 14-month high of 55 sen yesterday. A total of 5.61 million shares were traded, 14 times higher than stock’s 200-day average volume of 390,254 shares. For the past one year, its share price has risen 37.5% from 40 sen.

In November, Omesti’s 51%-owned unit, Formis Network Services Sdn Bhd, bagged a RM71.47 million contract to rent computer equipment to the Inland Revenue Board of Malaysia.

The three-year contract, to be completed on Nov 14, 2022, is expected to contribute positively to Omesti’s earnings throughout the contract’s duration.