Stock With Momentum: Only World Group Holdings

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This article first appeared in The Edge Financial Daily, on December 28, 2015.


Only World Group Holdings Bhd (-ve)

SHARES of OWG (Fundamental: N/A, Valuation: N/A) rose 7.2% to close at an all-time high of RM3.13 last Wednesday. Since first triggering our momentum algorithm in April, the stock has performed well, rising by 40.7%.

Listed in December 2014, OWG is primarily involved in operating food service outlets and a central kitchen. This segment contributed 73.8% of FYJun2015 revenues. The company also operates water amusement parks and family attractions, which include Wet World Water Parks, STARShip Galactica and Roller Sports World.

Since end-July, Dato’ Sri Dato’ Koh Cheng Keong (OWG’s managing director and largest shareholder) has cut his holdings in OWG to 57.2% from 68% in the open market via his private vehicle Rich Dad Café Sdn Bhd. The latest share sale was on December 16, with two million shares disposed.

Meanwhile, OWG will be holding an extraordinary general meeting on December 29 to approve its proposed 1-for-5 bonus issue.