Paramount Corp Bhd (-ve)
TRADING of shares in Paramount Corp Bhd (fundamental: 0.8/3, valuation: 2/3) triggered our momentum algorithm last Friday for the second time last week.
Paramount went up five sen or 2.29% at RM2.23, after 954,500 shares were traded, versus the counter’s 200-day average volume of 216,595 shares. The group’s market capitalisation stood at RM966.36 million.
Last week, Paramount announced that it was divesting a controlling stake in its K-12 education business to Two Horses Capital Sdn Bhd for an indicative price of RM540.5 million cash.
With the cash in hand, the group plans to distribute RM177 million, or 40.8 sen per share, to its shareholders in the form of special dividend. On the other hand, Paramount will have a bigger war chest to expand its land bank for property developments and to trim borrowings.