Global Oriental Bhd (-ve)

SHARES in Global Oriental Bhd (fundamental: 0.95/3, valuation: 1.20/3) triggered our momentum algorithm yesterday for the second time this year and closed one sen or 2.41% higher at 42.5 sen, giving it a market value of RM188.69 million.

The counter saw some 11.52 million shares traded yesterday, a huge climb from its 200-day average volume of just 149,514 shares.

The group returned to the black in its second quarter ended Sept 30, 2016 (2QFY16) with a net profit of RM2.5 million, compared with a net loss of RM12.97 million registered in the previous year’s corresponding quarter, mainly due to increased revenue recognition from its development projects in Seri Kembangan and Subang Jaya, and the sale of a subsidiary company.

Quarterly revenue jumped 62% to RM58.3 million up from RM36 million.

The stock is currently trading at 0.42 times its book value.