Kumpulan Jetson Bhd (-ve)

SHARES in Kumpulan Jetson Bhd (fundamental: 0.15/3, valuation: 0.9/3) was highlighted as a “red flag” momentum stock by our proprietary algorithm last Friday, suggesting that investors should exercise extra caution while trading in its shares.

The counter closed 0.5 sen or 1.85% higher at 27.5 sen that day, after 2.73 million shares were done, compared with its 200-day average volume of 314,021 shares.

Kumpulan Jetson’s core business includes construction, property development and the manufacturing of anti-vibration systems, chemicals and plastic products.

It fell into the red with a net loss of RM398,000 in the second quarter ended June 30, 2016, from a net profit of RM1.75 million, due to lower margin in its construction and property division. Revenue, however, rose 4.78% to RM41.67 million from RM39.77 million.

The stock currently trades at 0.45 times its book value.