NOVAMSC (0026) - Stock With Momentum: Nova MSC

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

Nova MSC Bhd (-ve)

SHARES in Nova MSC Bhd (fundamental: 1.85/3, valuation: 0.3/3) triggered our momentum algorithm again yesterday after the stock was first picked as a Stock with Momentum on Monday.

The counter ended the day 4% lower at 12 sen, after 8.96 million shares were traded — significantly higher compared with its 200-day average volume of 2.75 million shares.

The group announced on June 7 that the issue price of its private placement — of up to 20% of its enlarged issued and paid-up share capital — had been fixed at 10 sen per placement share for the first tranche of the private placement.

Nova MSC’s share price has dropped about 17.24% from a year ago, but on a year-to-date basis, it has rebounded with an 8.7% increase. Its 52-week range is between nine sen and 17 sen, indicating marked volatility.

At its current level, which gives it a market capitalisation of RM71.55 million, the stock is trading at 1.59 times its book value.

NOVAMSC (0026) - Stock With Momentum: Nova MSC