Stock With Momentum: Red Sena

This article first appeared in The Edge Financial Daily, on January 7, 2019.
-A +A

Red Sena Bhd (-ve)
TRADING of shares in special purpose acquisition company (SPAC) Red Sena Bhd (fundamental: 0.75/3, valuation: 0/3) triggered our momentum algorithm last Friday after 21.5 million shares in the group were traded.

Comparatively, its 200-day average volume traded was 1.48 million shares. The stock closed unchanged last Friday at 50.5 sen, though it had climbed to this record high on Dec 28 last year.

That was also the first time Red Sena has ever traded above its initial public offering (IPO) price of 50 sen. It had lost 11 sen on its maiden trading day in Dec 2015.

Red Sena faces delisting from Bursa Malaysia following a suspension effective on Jan 16, as it has failed several attempts to secure a qualifying acquisition (QA). It was Bursa Malaysia’s first SPAC established in the food and beverage industry.

Money will be returned to shareholders from an estimated 92% or RM368 million allocated during the IPO for the purchase of a QA.