By Asia Analytica / The Edge Financial Daily | July 20, 2016 : 10:37 AM MYT
This article first appeared in The Edge Financial Daily, on July 20, 2016.
Goodway Integrated Industries Bhd (+ve)Red Flag
SHARES in Goodway Integrated Industries Bhd (fundamental: 0.15/3, valuation: 0.9/3) gained 5.49% to settle at 48 sen yesterday, after 8.85 million shares were exchanged.
The counter was, however, highlighted as a “red flag” stock by our proprietary algorithm, suggesting that investors should exercise extra caution when trading in its shares.
Goodway has triggered the algorithm three times this month. Its share price is now double the 24 sen at end-June. On Monday, it said it was acquiring S5 Systems Sdn Bhd from NSA Technology Sdn Bhd for RM900 million.
The proposed buy is expected to provide shareholders of Goodway, which has been loss-making since the financial year ended Dec 31, 2014, an opportunity to participate in a new core business that is profitable with growth potential and a steady stream of cash flows.
Prior to the announcement, Goodway was slapped with an unusual market activity query by Bursa Malaysia due to the sharp rise in its share price.
GOODWAY (7192) - Stock With Momentum: Goodway Integrated Industries