Stock With Momentum: Straits Inter Logistics

This article first appeared in The Edge Financial Daily, on July 17, 2017.
-A +A

Stock With Momentum: Straits Inter Logistics Bhd (-ve)

SHARES in Straits Inter Logistics Bhd (fundamental: 1.95/3, valuation: 0/3) triggered our momentum algorithm last Friday for the third time this year.

The counter closed down one sen or 3.45% at 28 sen, with 8.74 million shares changing hands, compared with its 200-day average volume of 743,143 shares.

The group manufactures and distributes air and water filters. It is also engaged in oil trading and bunkering services for marine fuel and petroleum based products.

For the first quarter ended March 31, 2017, Straits Inter Logistics posted a net profit of RM548,000, compared to a net loss of RM1,000 in the previous year. Quarterly revenue surged 134% to RM23.1 million from RM9.85 million a year ago, following the group’s plan to diversify its principal activities into oil bunkering and trading in oil products.

At the current share price, Straits Inter Logistics is trading at four times its book value.