Wintoni Group Bhd (+ve)
SHARES in Wintoni Group Bhd (fundamental: 0.6/3, valuation: 0/3) closed up 2.5 sen or 100% at five sen yesterday, with 31.1 million shares traded, surpassing its 200-day average trading volume of one million shares.

It has triggered our momentum algorithm once this year.

The Practice Note 17 company is a business solution provider and designer of automation systems.

In its third financial quarter ended Sept 30, 2016 (3QFY16), Wintoni’s net loss narrowed to RM365,000 from RM35.2 million net loss a year ago due to significantly reduced administration expenses.

Revenue plunged 96.7% to RM59,000 in its 3QFY16 from RM1.8 million in 3QFY15.

For its cumulative nine months of financial year 2016 (9MFY16), net loss reduced to RM408,000 from RM49.6 million net loss a year ago, while revenue fell 98% to RM139,000 from RM6.2 million in 9MFY15.

Wintoni said sales decreased due to bad condition in the global information technology industry which resulted in lower revenue generation.

“Due to lack of funding for new business opportunities, the group is unable to implement any business plan or any proper business direction. In addition, there is litigation concerning a group of shareholders acting in concert and holding more than 33% of the issued shares of the company,” it added.

Going forward, Wintoni’s board of directors is in the process of looking for suitable business ventures to be injected into the group.

In an announcement yesterday, the company said it has yet to finalise formulating its plan to regularise its financial condition.

Wintoni added that it is required to submit a regularisation plan to the relevant regulatory authorities by Feb 26, 2017.

At the current share price, Wintoni is trading at 278 times its book value.