Theta Edge Bhd (-ve)

SHARES in Theta Edge Bhd (fundamental: 1.85/3; valuation: 0.9/3) triggered our stocks with momentum algorithm yesterday for the seventh time this year.

The stock dropped 5.05% or 2.5 sen at 47 sen yesterday, with 834,600 shares done versus the counter’s 200-day average of 507,369 shares. The group, a subsidiary of Lembaga Tabung Haji, is an information and communications technology service provider.

For the third quarter ended Sept 30, 2017 (3QFY17), it reported a net profit of RM5.96 million versus a net loss of RM122,000 in the previous year.

Quarterly revenue declined 28% to RM22.06 million from RM30.43 million a year ago due to lower segment earnings. For the nine-month period of FY17, the group reported a net loss of RM1.41 million versus a net profit of RM1.05 million in the previous year.

Theta Edge is currently trading at 0.76 times its net book value.