Stock With Momentum: PUC Founder (MSC)

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This article first appeared in The Edge Financial Daily, on March 21, 2017.


PUC Founder (MSC) Bhd (-ve)
SHARES in PUC Founder (MSC) Bhd (fundamental: 1.95/3, valuation: 1.1/3) triggered our momentum algorithm yesterday, as the counter closed four sen or 34.78% higher to settle at 15.5 sen, with a market capitalisation of RM175.1 million. Volume traded was 269.47 million shares, compared with its 200-day average volume of 2.89 million shares.

The information technology solutions provider will conduct a 10% placement or up to 109.4 million shares to raise RM9.3 million to fund its technology business expansion involving its electronic commerce and payment, advertising and media, and related business, which would enhance the group’s performance.

The proposed placement is expected to be completed by the second quarter of 2017, subject to relevant approvals.

The stock has a trailing 12-month price-earnings ratio of 47.1 times and is currently trading at 0.74 times its book value.