Stock With Momentum: Carimin Petroleum
12 Oct 2017, 10:38 am
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Stock With Momentum: Carimin Petroleum Bhd

This article first appeared in The Edge Financial Daily on October 12, 2017 - October 18, 2017

Carimin Petroleum Bhd (+ve)
SHARES in Carimin Petroleum Bhd (fundamental: 1.65/3, valuation: 0.9/3) triggered our momentum algorithm yesterday for the fourth time in the past two months. The stock price went up one sen or 2.04% at 50 sen yesterday for a market capitalisation of RM118.11 million. Some 15.02 million shares were traded yesterday, which was higher than its 200-day average volume of 1.325 million shares.

Last week, Carimin announced that it had won a five-year contract from Petronas Carigali Sdn Bhd to provide maintenance, construction and modification services (Package C [Offshore] Peninsular Malaysia Oil) for an undisclosed sum. The contract, which is valid for five years — from Sept 20 this year until Sept 19, 2022 — at an agreed fixed schedule of rates, comes with a one-year optional extension. Carimin said the new job should contribute positively to its earnings over the duration of the contract.

Its shares are currently trading at 0.73 times its net book value.

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