KUALA LUMPUR (June 5): theedgemarkets.com highlighted seven stocks with momentum at Bursa Malaysia's afternoon market close today. Two stocks show positive momentum while five show negative momentum.
The stock with positive momentum is:
Xian Leng Holdings Bhd (fundamental: 1.05; valuation; 0.9) up 14.5 sen at 60 sen
Rubberex Corp (M) Bhd (fundamental: 1.4; valuation: 2.6) up one sen at 74 sen
Stocks with negative momentum are:
Wong Engineering Corp (fundamental: 1.25; valuation: 0.3) up 2.5 sen at 65.5 sen
United U-Li Corp Bhd (fundamental: 2.7; valuation: 2) up 16 sen at RM3.25
Cocoaland Holdings Bhd (fundamental: 2.8; valuation: 2) up six sen at RM2.49
Golden Land Bhd (fundamental:0.7; valuation: 2) up five sen at RM1.87
Jerasia Capital Bhd (fundamental: 0.8; valuation: 1.7) up two sen at 68 sen
The list of stocks with momentum is generated using a proprietary mathematical algorithm highlighting stocks with a build-up in trading volume and price. The algorithm differentiates between stocks that exhibit positive (+ve) momentum and negative (-ve) momentum.
This list is not a buy or sell recommendation. It merely tells you which stocks are seeing higher than normal volume and price movements. The share price may move up or down from this point. But the "+ve" (suggesting a rising price trend on volume) and "-ve" (suggesting a falling price trend on volume) indicators should give readers a better idea of what the market is buying and when to sell. Note also that momentum generally only persists for a short period of time.
However, each stock has an accompanying fundamental score and valuation score to help readers evaluate the attractiveness of the stocks, if they want to ride the momentum.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)