Stock With Momentum: Velesto Energy

This article first appeared in The Edge Financial Daily, on November 7, 2019.
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Velesto Energy Bhd (-ve)
TRADING of shares in Velesto Energy Bhd (fundamental: 0.75/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the seventh time this year.

The stock closed 2.5 sen or 6.94% higher at 38.5 sen, with 285.08 million shares traded, compared with the average 22.33 million shares recorded in the past 200 days.

On Tuesday, the group said its unit had bagged a contract worth US$131 million (RM541.17 million) from Carigali Hess Operating Company Sdn Bhd. Carigali Hess, an oil and gas joint venture between PCJDA Ltd and Hess Oil Company of Thailand Ltd, is involved in gas production in the joint development area administered by the Malaysia-Thailand Joint Authority.

The contract, which is for the provision of a 10K jack-up drilling rig, will start in the second half of 2020 for a duration of three years, with three extension options of six months each.