This article first appeared in The Edge Financial Daily on August 29, 2017 - September 4, 2017

M3 Technologies (Asia) Bhd (+ve)

SHARES in M3 Technologies (Asia) Bhd (fundamental: 1.8/3, valuation: 0.9/3), which triggered our Stocks with Momentum algorithm yesterday, closed 0.5 sen or 5% lower at 9.5 sen. The value-added mobile services provider saw 30.5 million shares traded, far above its 200-day average volume of 3.58 million shares.

In the fourth quarter ended June 30, 2017, M3 Technologies’ net loss expanded to RM4.71 million from RM3.94 million a year ago, though revenue improved 38% to RM12.52 million from RM9.07 million.

For the full financial year 2017 (FY17), net loss grew to RM6.97 million from RM5.93 million in FY16. Revenue slid 4.7% to RM39.16 million from RM41.08 million.

In a Bursa Malaysia filing last Friday, M3 Technologies said the higher annual net loss was mainly due to a loss incurred in the disposal of investment in one of its associates. At the current share price, M3 Technologies is trading at 1.02 times its book value.