Stock With Momentum: PeterLabs Holdings

This article first appeared in The Edge Financial Daily, on January 13, 2020.
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PeterLabs Holdings Bhd (-ve)
TRADING of shares in PeterLabs Holdings Bhd (fundamental: 1.7/3, valuation: 0.5/3), which closed one sen or 4.35% higher at 24 sen last Friday, triggered our momentum algorithm for the fifth time since Jan 24, 2019.

At the closing bell, the animal health and nutritional products maker — now valued at RM51.54 million — recorded a total trading volume of 4.35 million shares, sharply higher than the counter’s 200-day average of 1.12 million shares.

PeterLabs has been embroiled in a boardroom tussle in the past year starting in February when two substantial shareholders, including executive director Lau Kin Wai, wanted to oust seven board members.

Things took a turn in April after two shareholders issued a notice expressing their intention to remove Lau in a May annual general meeting. Lau then trimmed his stake and ceased to be a substantial shareholder on April 16, before stepping down on May 29.