Stock With Momentum: TDM Bhd

This article first appeared in The Edge Financial Daily, on December 6, 2019.
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TDM Bhd (-ve)
SHARES in TDM Bhd (fundamental: 0.35/3, valuation: 0.9/3) closed two sen or 8.89% higher at 24.5 sen yesterday. It was the fourth most actively traded stock on Bursa Malaysia, with 43.78 million shares done, more than 11 times its 200-day average trading volume of 3.81 million shares.

The stock made it into our Stocks with Momentum list yesterday for the first time in almost three years. It was last featured on Jan 19, 2017.

It reported a sharply wider net loss for the third quarter ended Sept 30, 2019 at RM41.4 million, compared with RM3.27 million last year following a fire incident at its Kalimantan estates. This was despite a 22.4% growth in revenue to RM106.11 million from RM86.7 million.

TDM said the write-off of bearer plants affected by the fire incident during the quarter amounted to RM33.7 million for a total area of 1,918ha, based on the management’s assessment of the affected area supported by a valuation report.