TDEX (0132) : Stocks With Momentum: Technodex
Technodex Bhd
Technodex (TDEX) is principally involved in providing IT, e-Business and human resource solutions, providing users with an open source framework for building web applications.
TDEX’ share price rose 2.2% to 23 sen on Monday, after trading volume surged to a three-year high of 43.8 million shares, or about 15% of its total issued shares. Despite periodic bouts of high volume, its stock price has traded in a very tight range of 21 sen and 22.5 sen over the past three weeks.
The company has seen a number of announcements in recent weeks. On 5 Nov 2014, its chairman Kerk Han Meng acquired 10.2 million shares off-market at 22.8 sen per share on 5 Nov 2014.
The company has also announced a number of corporate exercises, which includes acquiring stakes in several private companies. Among them is a 55% stake in Idealseed Resources Sdn Bhd, an employment and consultancy services firm, which it plans to acquire for RM2.2 million.
TDEX has also proposed to undertake a 10% private placement exercise, which it hopes to raise up to RM8.5 million.
The company’s profit margins have been erratic for the past years, ending in losses of about RM430,000 for FY April 2014. In Q1FY2015, it has managed to return to the black with a modest net profit of RM89,000 on the back of RM3.7 million in revenue. Investors should note that TDEX’s pioneer status will expire in FY 2015.
The company had net cash position of RM6 million in 1QFY2015, after managing to reduce its trade receivables by 64% to RM4.29 million as of FY2014. However, investors should note that there is client concentration risk given that 80% of its trade receivables are from three customers.
TDEX trades at 3.6 times book with a 12-month trailing P/E ratio of 286 times.
http://www.theedgemarkets.com
Technodex Bhd
Technodex (TDEX) is principally involved in providing IT, e-Business and human resource solutions, providing users with an open source framework for building web applications.
TDEX’ share price rose 2.2% to 23 sen on Monday, after trading volume surged to a three-year high of 43.8 million shares, or about 15% of its total issued shares. Despite periodic bouts of high volume, its stock price has traded in a very tight range of 21 sen and 22.5 sen over the past three weeks.
The company has seen a number of announcements in recent weeks. On 5 Nov 2014, its chairman Kerk Han Meng acquired 10.2 million shares off-market at 22.8 sen per share on 5 Nov 2014.
The company has also announced a number of corporate exercises, which includes acquiring stakes in several private companies. Among them is a 55% stake in Idealseed Resources Sdn Bhd, an employment and consultancy services firm, which it plans to acquire for RM2.2 million.
TDEX has also proposed to undertake a 10% private placement exercise, which it hopes to raise up to RM8.5 million.
The company’s profit margins have been erratic for the past years, ending in losses of about RM430,000 for FY April 2014. In Q1FY2015, it has managed to return to the black with a modest net profit of RM89,000 on the back of RM3.7 million in revenue. Investors should note that TDEX’s pioneer status will expire in FY 2015.
The company had net cash position of RM6 million in 1QFY2015, after managing to reduce its trade receivables by 64% to RM4.29 million as of FY2014. However, investors should note that there is client concentration risk given that 80% of its trade receivables are from three customers.
TDEX trades at 3.6 times book with a 12-month trailing P/E ratio of 286 times.
http://www.theedgemarkets.com
