Stock With Momentum: OSK Ventures International

This article first appeared in The Edge Financial Daily, on May 19, 2017.
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OSK Ventures International Bhd (+ve)

SHARES in OSK Ventures International Bhd (fundamental: 1.95/3, valuation: 1.8/3) triggered our momentum algorithm yesterday for the first time this year.

The counter closed 4.5 sen or 6.38% higher at 75 sen, after 6.83 million shares were traded, far above its 200-day average of 79,926 shares.

The group, an affiliate of OSK Holdings Bhd, provides equity capital to mid-late stage high-growth companies. Its current investments are focused on telecommunications, application software and systems, consumer products and oil and gas.

The company returned to the black in its first quarter ended March 31, 2017 (1QFY17), with a net profit of RM14.75 million, from a net loss of RM4.84 million recorded a year earlier, thanks to a net fair value gain on financial instruments of RM15.24 million.

At the current share price, OSK Ventures International, which has a market capitalisation of RM148.08 million, is trading at 0.74 times its book value.