Stock With Momentum: SMTrack

This article first appeared in The Edge Financial Daily, on April 16, 2019.
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SMTrack Bhd (-ve)

SMTrack Bhd (fundamental: 1.2/3, valuation: 0.3/3) also made it to our list yesterday for the second time this month.

The counter closed 2.5 sen or 21.74% higher at 14 sen, with a market capitalisation of RM20.85 million, after 26.28 million shares were traded versus its 200-day average volume of 938,762 shares.

The company is an MSC-status track and trace solutions provider that utilises radio frequency identification to provide online and mobile solutions.

On Saturday, SMTrack inked a preliminary agreement with Dexma Express Sdn Bhd to explore investment opportunities in Garuda Indonesia’s subsidiary Citilink’s upcoming operation in Malaysia. Under the memorandum of understanding, SMTrack plans to acquire a 60% stake in the operation for RM2.8 million.

Dexma will then change its name to Citilink Aviation Malaysia Sdn Bhd and obtain an air operator certificate and any other licences or permits required for the purpose of Citilink Malaysia’s operation.