Stock With Momentum: Pinehill Pacific

This article first appeared in The Edge Financial Daily, on September 26, 2018.
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Pinehill Pacific Bhd (+ve)
Trading of shares in Pinehill Pacific Bhd (fundamental: 0/3, valuation: 0.9/3) fell by 8.5 sen or 15.74% to 45.5 sen yesterday, after 14.3 million shares were traded, versus the counter’s 200-day average volume of about 192,248 shares.

Last Friday, the group announced the proposed disposal of its plantation assets in Hilir Perak — about 8,999.13 acres (3,641.82ha) — to United Plantations Bhd for RM413.6 million.

Some RM126.7 million and RM109.5 million from the proceeds will be used to repay bank borrowings and its creditors, respectively. Another RM70 million will be used to fund its existing oil palm plantation business in Indonesia. The balance will be given out as dividend to minority shareholders, used as working capital and to pay estimated disposal expenses.

Over the last one year, Pinehill shares have jumped some 106.8%.