This article first appeared in The Edge Financial Daily on March 28, 2019

Straits Inter Logistics Bhd (-ve)
TRADING of shares in oil trading and bunkering operator Straits Inter Logistics Bhd (fundamental: 0.9/3, valuation: 0.8/3) triggered our momentum algorithm yesterday for the third time this year.

The stock closed half a sen or 1.82% lower to 27 sen yesterday, with 8.31 million shares done, compared with the average 1.53 million shares recorded in the past 200 days.

On Feb 20, the group said it is paring down its stake in its wholly-owned logistics unit in favour of a new director in the subsidiary.

It said the unit, Straits Alliance Transport Sdn Bhd (SAT), will issue new shares to be partly subscribed by a new director, James Chai Yiing Jen, who has 15 years of experience in the logistics business.

To rope in Chai, SAT will issue 450,000 shares, of which 15,000 will be subscribed by Straits Inter Logistics and 435,000 shares (30% of the enlarged share base) by Chai for an undisclosed sum.

This will result in the dilution of Straits’ equity interest in SAT from 100% to 70%.