Friday 26 Apr 2024
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Komarkcorp Bhd (+ve) Red Flag
TRADING volume for Komarkcorp (Fundamental: 0.2/3, Valuation: 1.2/3) surged to over 5 million shares yesterday, from its average 200-day trading volume of only 116,852 shares. Its share price rose to a fresh year-high of 66 sen before retracing to close at 64 sen, for a gain of 11.3%. Due to its low fundamental score, the stock was ‘Red Flagged’, suggesting investors should exercise caution. 

The company is now primarily involved in the printing of labels, after discontinuing its unprofitable automatic labeling machine segment in 2QFYApril2015. In 3QFY15, the company made a small net profit of RM0.808 million, after 3 consecutive loss-making quarters. Improved results in the latest quarter pared cumulative net loss to RM0.488 for 9MFY2015, compared with net profit of RM0.916 in the previous corresponding period.

About 70% of the its products are exported, with China being its largest market followed by Thailand and Singapore.

komarkcorp_020415

 

This article first appeared in The Edge Financial Daily, on April 2, 2015.

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