MIECO (5001) - Stocks With Momentum: Mieco Chipboard
MIECO CHIPBOARD BHD (Fundamental:0/3, Valuation: 1.2/3) was highlighted as a “Red flag” Stocks With Momentum by The Edge Market’s proprietary algorithm yesterday. Stocks are “Red Flagged” when they have weak fundamentals coupled with an increase in trading momentum, which suggests investors should exercise extra caution.
Mieco manufactures particleboards commonly used as a core material for home and office furniture, wall panels, worktops for both domestic and export markets.
Revenue declined 4.4% from RM307.7 million in 2012 to RM294.7 million in 2013 on the back of lower particleboard selling prices. Losses widened from RM7 million to RM63.6 million over the same period, due, in part, to impairment loss of RM45.8 million on Mieco’s Kuala Lipis plant.
Positively, turnover improved 13.5% y-y in 9M2014 and Mieco returned to the black with net profit totalling RM3.4 million. Gearing stood at 46.3% at end-September 2014.
Mieco has not paid dividends since 2007.
This article first appeared in The Edge Financial Daily, on February 10, 2015.
http://www.theedgemarkets.com/
MIECO CHIPBOARD BHD (Fundamental:0/3, Valuation: 1.2/3) was highlighted as a “Red flag” Stocks With Momentum by The Edge Market’s proprietary algorithm yesterday. Stocks are “Red Flagged” when they have weak fundamentals coupled with an increase in trading momentum, which suggests investors should exercise extra caution.
Mieco manufactures particleboards commonly used as a core material for home and office furniture, wall panels, worktops for both domestic and export markets.
Revenue declined 4.4% from RM307.7 million in 2012 to RM294.7 million in 2013 on the back of lower particleboard selling prices. Losses widened from RM7 million to RM63.6 million over the same period, due, in part, to impairment loss of RM45.8 million on Mieco’s Kuala Lipis plant.
Positively, turnover improved 13.5% y-y in 9M2014 and Mieco returned to the black with net profit totalling RM3.4 million. Gearing stood at 46.3% at end-September 2014.
Mieco has not paid dividends since 2007.
This article first appeared in The Edge Financial Daily, on February 10, 2015.
http://www.theedgemarkets.com/
