Friday 02 Jun 2023
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KUALA LUMPUR (Nov 6): There was a sudden surge of interest in BTM Resources Bhd (BTM) today, lifting its share price by 30%.

The timber company’s share price rose six sen to close at a one-month high of 26 sen. The trading was brisk with 64.75 million shares changing hands, which is equivalent to half of its share capital of 122.2 million shares.

Terengganu-based BTM is one of counters featured as the Stocks with Momentum by TheEdge Research today. However, a red flag is raised on the stock to caution investors on its high risk level.

On a scale of one to five, BTM’s risk factor reads at five indicating the high risk level of the stock. Meanwhile, the fundamentals of the loss making company is weak based on TheEdge Research with barely 0.2 on the scale of zero to three.

The spike on share price and trading volume came after the listing of 81.46 million rights shares and 32.58 million warrants on Oct 28.

In a filing with Bursa Malaysia on Wednesday, BTM said it obtained an extension of four months up to Feb 25, 2015 to dispose the woodwaste fired cogeneration system boiler by its wholly-owned subsidiary Besut Tsuda Wood Production Sdn Bhd for RM4.2million.

BTM’s core business involves manufacturing of moulding, priming timber and sawntimber, which are the key contribution to the company.

It also involves in logging and trading of sawntimber and plywood, kiln-drying operations, timber moulding, manufacturing of finger jointed timber and lamination boards.

BTM posted a net loss of RM847,000 in the second financial quarter ended June 30, 2014 compared with a net loss of RM19,000 a year earlier.

For the six months, the company's net loss expanded to RM2.56 million from RM548,000 in the previous corresponding period. Loss per share ballooned to 2.08 sen from 0.05 sen a year ago.

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