Stock With Momentum: Privasia Technology Bhd

This article first appeared in The Edge Financial Daily, on July 26, 2018.
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Privasia Technology Bhd (+ve)
TRADING of shares in Privasia Technology Bhd (fundamental: 0.75/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the third time this year.

The technology solution and business process outsourcing firm saw 9.9 million shares traded, equivalent to 1.77% of its share capital, exceeding the counter’s 200-day average of 1.47 million shares.

The stock closed unchanged at 14 sen, valuing it at RM78.15 million. Privasia was last traded at 1.1 times its book value.

For the first quarter ended March 31, 2018, Privasia’s net loss was reduced to RM1.64 million, from RM2.14 million a year ago, on improving cost control.

Quarterly revenue, however, fell 23.6% to RM11.78 million, from RM15.42 million a year ago, no thanks to lower income from its two business divisions — satellite-based network services, as well as information and communications technology.