Silver Ridge Holdings Bhd (-ve)

Shares in Silver Ridge Holdings Bhd (fundamental: 0.95/3, valuation 0.3/3), which triggered our momentum algorithm yesterday for the second time this month, closed at 15 sen, after 4.2 million shares were exchanged, compared with its 200-day average volume of 111,313 shares.

Earlier this year, Silver Ridge proposed a par value reduction to halve the par value of its shares to five sen from 10 sen each, to reduce the group’s accumulated losses of RM6.82 million.

The company expected a minimum of RM6.05 million credit arising from the exercise, or as much as RM8.8 million if all outstanding warrants are exercised.

The proposed corporate exercise was approved by shareholders on Sept 8. As such, the exercise is slated to be completed in the fourth quarter of 2016.

The counter, which closed half a sen or 3.45% higher at 15 sen, is trading at 1.6 times its net asset value. The company did not pay any dividend for the financial year ended Dec 31, 2015.