This article first appeared in The Edge Financial Daily on May 2, 2019
Aturmaju Resources Bhd (+ve)
ARB Bhd, formerly Aturmaju Resources Bhd (fundamental: 2.55/3, valuation: 0.30/3), made it into our Stocks with Momentum list on Tuesday for the seventh time this year. It was last featured on March 15.
The stock rose 32.5% or 13 sen to close at 53 sen on Tuesday after 57.53 million shares were traded, over 55 times more than the 200-day average trading volume seen of 1.02 million shares.
On Tuesday, the group announced it returned to the black with a record-breaking quarterly net profit of RM5.08 million in the three months ended March 31, 2019 (1QFY19), versus a net loss of RM649,000 in the same quarter a year ago. Revenue for 1QFY19 surged 157 times to RM12.43 million, from RM79,000, as contribution from its information technology segment strengthened.
Just a day earlier, ARB announced a share sale agreement to dispose of two loss-making indirect wholly-owned subsidiaries that would give it an estimated gain of about RM3.61 million.