KUALA LUMPUR (Nov 10): MMS Ventures Bhd fell as much as 2% after The Edge Research said shares of the industrial automation manufacturer was "not cheap".
AT 11.28am, MMS fell as much as 1.5 sen to 66.5 sen with with some eight million shares traded.
The stock had earlier hit a high of 69.5 sen. For comparison, the FBM KLCI added 4.45 points or 0.24%.
MMSV is one of the stocks with momentum highlighted by The Edge Research using algorithm.
The Edge Research report is published in The Edge Financial Daily today.
The Edge Research noted that MMS shares were traded at four times book value, and a trailing 12-month price-earnings ratio of 14.3 times.
"For valuations to compress, investors will need to see more evidence that the earnings recovery is sustainable," The Edge Research said.
According to The Edge Research, MMS shares had earlier risen by 75.6% from a three-month low of 39 sen on October 16.
The research unit noted that although MMS' revenue had fallen to RM16.3 million in financial year (FY) ended December 31, 2012 from RM25.7mill in FY10, it had recovered to RM26.7 million in FY13.
"Balance sheet is solid with net cash of RM10.1 million or 6.2 sen per share at end-2Q14," it said.