Selangor Dredging Bhd (+ve)
SHARES in Selangor Dredging Bhd (fundamental: 1/3, valuation: 2/3) triggered our momentum algorithm yesterday for the fifth time this year. The counter closed unchanged at RM1.13, with 1.01 million shares done, about 10 times higher than its 200-day average volume of 104,613 shares.
The group is principally involved in property development. It is also involved in the hotel industry.
On June 20, the group said it was selling its Wisma Selangor Dredging building, along with the land it sits on in Jalan Ampang, for RM480 million cash. The property developer said the proposed disposal would provide it with an opportunity to unlock its investment in the property and generate immediate cash flow for the group, besides enabling it to repay bank borrowings.
At the current share price, Selangor Dredging is trading at 0.54 times its book value.