Stock With Momentum: Sanbumi Holdings

This article first appeared in The Edge Financial Daily, on September 6, 2018.
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Sanbumi Holdings Bhd (-ve)
TRADING of shares in Sanbumi Holdings Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the fourth time this year.

The stock closed up 0.5 sen or 2.5% to 20.5 sen yesterday, with 979,500 shares done, much higher than the counter’s 200-day average of 114,675 shares.

The group is principally engaged in travel and tourism services including hotel operations, tour and ticketing services. It is also involved in general trading of lubricants and supplies. For the first quarter ended June 30, 2018 (1QFY19), the group reported a wider net loss of RM977,000 versus RM412,000 in the previous corresponding quarter on lower revenue and operating profit in the quarter under review. Loss per share was at 0.43 sen compared with a loss per share of 0.18 in 1QFY18.

Sanbumi is currently trading at 0.57 times its net book value.