This article first appeared in The Edge Financial Daily on December 2, 2019

Sig Gases Bhd (+ve)

Sig Gases Bhd (fundamental: 1.35, valuation: 0.8) made it again to our Stocks with Momentum list last Friday, marking its fifth entry this year. The last time the counter made it was on May 3.

The counter closed 1.59% or 1.5 sen higher at 96 sen, after 1.24 million shares were traded, nearly six times its 200-day average trading volume of 215,721 shares.

On Nov 18, the group announced a stronger net profit in its third quarter ended Sept 30, 2019 (3QFY19), as earnings jumped to RM2.38 million from RM835,000 a year ago, following the adoption of the Malaysian Financial Reporting Standard 5, the accounting standards, which it said required no depreciation provision for the current quarter.

It posted a revenue of RM20.31 million from its now discontinued operations, down 5.6% compared with RM21.51 million previously, largely attributed to lower refrigerant sales with the completion of project jobs.

The group, which is now classified under Practice Note 16 as a cash company with no material business activities following the sale of its major wholly-owned subsidiary Southern Industrial Gas Sdn Bhd, is now actively seeking to acquire a new business.