Stock With Momentum: Salutica

This article first appeared in The Edge Financial Daily, on August 21, 2018.
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Salutica Bhd (-ve)
TRADING of the shares in Salutica Bhd (fundamental: 1.45/3, valuation: 1.4/3) triggered our momentum algorithm yesterday for the third time this year. The group saw 21,912,800 shares traded compared with its 200-day average of 851,525.

Salutica slipped into the red in the third financial quarter ended March 31, 2018, posting a net loss of RM116,000 against a net profit of RM853,000 a year ago, as a result of increased research and development expenses for future product launches. Quarterly revenue, however, surged 52.35% to RM48.04 million, from RM31.53 million in the same period last year, thanks to higher sales of its headset products. On its prospects, Salutica, a vertically integrated electronics manufacturing company, said the business outlook remains favourable.The stock rose 3.5 sen or 5.88% to close at 63 sen, giving it a market capitalisation of RM244.44 million. Salutica was last traded at 1.43 times its book value.