CONNECT (0102) - Stock With Momentum: Connectcounty Holdings

This article first appeared in The Edge Financial Daily, on June 16, 2016.

Connectcounty Holdings Bhd (-ve)

SHARES in Connect (fundamental: 2.1/3, valuation: 0.3/3) triggered our momentum algorithm yesterday for the first time this year. The stock fell by 11.5% to 11.5 sen after 11.1 million shares changed hands, more than double its 200-day average volume of 4.16 million shares.

Yesterday, it announced that 649.8 million of the group’s irredeemable convertible preference shares (ICPS) would be listed on Bursa Securities today, together with 43.3 million warrants (warrants B). The ICPS were issued pursuant to its rights issue of the ICPS with warrants. The ICPS were known as Connect-PA, the warrants as Connect-WB.

In addition, 9.22 million warrants A arising from the adjustment to the rights issue of ICPS with warrants B, will be granted listing.

At its current stock price, which gives it a market capitalisation of RM127.2 million, Connect is trading at a trailing price-earnings ratio of 11.33 times and is at 1.44 times its book value.

CONNECT (0102) - Stock With Momentum: Connectcounty Holdings