Stock With Momentum: Rex Industry

This article first appeared in The Edge Financial Daily, on March 8, 2019.
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Rex Industry Bhd (-ve)
TRADING of shares in Rex Industry Bhd (fundamental: 0.9/3, valuation: 0.95/3) triggered our momentum algorithm yesterday. A total of 34,200 shares were traded versus a 200-day average of 1.46 million shares.

The counter closed unchanged at 42 sen yesterday. The stock has been trading between 40 sen and 42 sen since September last year.

On Tuesday, Rex announced that its wholly-owned unit Rex Canning Co Sdn Bhd had acquired a piece of freehold industrial land in Batu Pahat, Johor for RM13 million to extend its beverage production line.

It had secured the land from Pentas Prisma Sdn Bhd, on which it currently occupies a block as a distribution centre.

The group was in the red with a widened net loss for its second financial quarter ended Dec 31, 2018 to RM1.22 million from RM768,000 a year earlier due to higher expenses in its marketing department and local subsidiary.

This was despite its quarterly revenue increasing to RM38.38 million from RM34.34 million a year ago on stronger overseas sales.