Southern Steel Bhd (+ve) Red Flag
Southern Steel Bhd (fundamental: 0/3; valuation: 0.9/3) was highlighted as a “red flag” Stock With Momentum by our proprietary algorithm, suggesting that investors should exercise extra caution while trading. This was also the first time it triggered our momentum algorithm.
The stock closed 5 sen or 5% higher at RM1.05 yesterday, after 474,300 shares were traded, compared to its 200-day average volume of 50,208 shares.
The loss-making company has confirmed in early March that its subsidiary was affected by the industry-wide audit conducted by the Royal Malaysian Customs Department.
In a filing with Bursa Malaysia dated Mar 1, it said Customs made a “surprise” visit to its subsidiary Southern Steel Pipe Sdn Bhd (SSP) on Feb 24.
For the purpose of the audit, it said customs took custody of certain documents and related financial records and has frozen certain bank accounts.
At its current share price, the stock is trading at 0.52 times its book value.
SSTEEL (5665) - Stock With Momentum: Southern Steel
http://www.theedgemarkets.com/my/article/stock-momentum-southern-steel
