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Hot stock: Stratech keeps climbing on active trading
STRATECH Group on Monday rose half a cent or 11.6 per cent to S$0.048, on a volume of 56.6 million shares, making it the most active counter on the market.
The stock has been climbing steeply from S$0.015 in early April. Stratech is in the business of technology innovation for government and business clients, including the aerospace sector. Singapore's Changi Airport, for instance, uses its iFerret™ airfield/runway surveillance system.
Last Monday, remisier Ernest Lim said in a blog post: "Since April 10, 2015, Stratech has appreciated around 100 per cent from $0.016 to $0.032 today. Its recent share price performance has been spectacular.
"The recent significant contract wins (in Dubai and Hong Kong), coupled with the positive industry outlook, should make it an interesting stock to keep on the watch-list."
Mr Lim had written the blog post after an exclusive meeting with David Chew, executive chairman of Stratech. In the blog post, he extolled Stratech systems' use of high resolution intelligent vision over other players which use radar technology that may interfere with the performance of other airport equipment.
"Stratech's potential turnaround investment thesis revolves mainly around the success and acceptance of its iFerret (technology) by the airports," he said.
That said, the company has been on the Singapore Exchange (SGX) watch-list since June 2013, after recording three straight years of net losses, but Mr Lim believes that "there is a chance that SGX may grant an extension to them pending their discussions with SGX".