SMRT Holdings Bhd (+ve)

SHARES in SMRT Holdings Bhd (fundamental: 0.35/3, valuation: 0.3/3) triggered our momentum algorithm last Friday on heavy volume.

It closed 0.5 sen or 2.38% higher at 21.5 sen, after 5.05 million shares were traded, compared with its 200-day average volume of about 664,111.

SMRT’s share price gained 19.4% in just seven days into October. On Sept 29, its bourse filing showed Bursa Securities had approved the listing of and quotation of up to 36 million new ordinary shares, representing approximately 10% of its issued and paid-up share capital, pursuant to its proposed private placement announced in early September.

The estimated proceeds from the proposed placement are between RM4.76 million and RM6.16 million and will be used to repay bank borrowings and for working capital.

SMRT shares have declined 21.82% year-to-date and have fallen 28.33% from a year ago.

At its current level, it is trading at 0.99 times its book value, and has a market capitalisation of RM59.83 million.