This article first appeared in The Edge Financial Daily, on May 19, 2016.

PA Resources Bhd (-ve)

SHARES in PA Resources Bhd (fundamental: 0.15/3, valuation: 0.9/3) triggered our momentum algorithm for the first time yesterday as the stock surged 12.5% to close at its one-year high of nine sen, with 8.5 million shares traded. The counter was highlighted as a “red flag” by our proprietary algorithm, suggesting that investors should exercise extra caution while trading. PA Resources is involved in the production of aluminium billets, extrusion profiles and downstream aluminium product-related services. The group recorded a net loss of RM1.46 million in the third financial quarter ended March 31, 2016 (3QFY16) compared to a net profit of RM472,000 a year ago. Revenue also declined 35.5% to RM18.89 million from RM29.27 million in 3QFY15. The group has been loss-making since FY10. At current level, it is trading 0.95 times its book value.