Stock With Momentum: Protasco

This article first appeared in The Edge Financial Daily, on December 20, 2019.
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Protasco Bhd (+ve)
TRADING of shares in Protasco Bhd (fundamental: 0.35/3, valuation: 1.2/3) triggered our momentum algorithm yesterday for the fourth time this year.

The stock closed unchanged at 39.5 sen, with 5.5 million shares done, compared with the average 1.3 million shares recorded in the past 200 days. On Dec 9, Protasco said its 30%-owned associate company PJP Barisan HCM JV Sdn Bhd had secured a 10-year contract from the Public Works Department.

Protasco said the duration of the performance-based contract for the long-term management and maintenance of state roads in Sarawak, Package 3 (Mukah division), will be from Jan 1, 2020 to Dec 31, 2029. The contract, worth approximately RM24.6 million per annum, said Protasco, is subject to review every three years, with a maximum increase of 7.2% per revision.