Stock With Momentum: TSR Capital

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This article first appeared in The Edge Financial Daily, on March 21, 2017.

 

TSR Capital Bhd (-ve)
SHARES in TSR Capital Bhd (fundamental: 0.6/3, valuation: 1.7/3) triggered our momentum algorithm yesterday, as the counter closed up 2.5 sen or 4% higher to settle at 65 sen, with some 3.52 million shares traded, a huge climb from its 200-day average volume of just 49,954 shares.

Last Thursday, the group announced that it had signed a memorandum of understanding (MoU) with Terusan Al-Maju Sdn Bhd to develop 30.76ha of land in Langkawi into a high-end mixed development, including residential units, a resort, hotels, and commercial and corporate buildings to cater to the tourism and service industry.

The civil engineer and property developer said the MoU is valid for one year and is subject to any extension mutually agreed upon by the parties.

The stock is currently trading at 0.62 times its book value and has a 12-month price-earnings ratio of 10.68 times.