This Company is involved in ERP and IoT. IoT is the next big thing if you have read about it. If you're also in Bitcoin and alt coins, probably you have heard it long ago. Apparently ARBB is the only proven company in Malaysia for IoT while most others is in testing stage.
About the dilutive shares due to the conversion of ARBB-PA which many people complain including me, there is a positive side actually which is you need to pay RM0.20 to convert, so actually when converting RM200 will go into the bank of the Company per 1,000 shares. But still I myself don't like this, but to be fair you need to write about its positive part also.
Results as follows:
Since becoming an Tech stock it has posted quite impressive results. The only thing I don't like is the dilutive share which keep increasing. This stock I have been looking for quite some time as I'm not sure if it's doing ok. Another reason of looking at it is because due to MCO, in a lot of companies, thing has already changed. Either you adopt technology or you will be out of business. Hence IT solutions like this come in handy as it accelerates the adoption. Either you follow or your company will be out of business due to the change in environment. What in general people know is Glove companies have impressive earnings in our current environment, but a bit of news about vaccine most get panic already. Why is that so? Because people know glove companies is overvalued, and as long as there is the next idiot that keep buying the shares from the previous holder, it will of course still going up. People will keep quiet and not telling people so they could sell it to the next idiot and so on, they know its overvalued, but if my cost is low of course I want to sell high to the next person. Alternatively, we can always as ourselves, what opportunities could present itself in this environment? And start thinking...You can't keep thinking the same way as before because most businesses are traditional type of business. Renewable energy? IoT? Solar power? Something that is disruptive.
News is for entertainment. Reporters and writters from theEdge, the Star, NST, or whatever lar...you really think they know what they're talking about? Sometimes a Company shares can drop without any reason. Then they will write a logic thing to justify it. Most pro is copy+paste. All of that are rubbish my friends. They need to cari makan so have to write things that either please their advertisers, readers etc. but all is bullshit. One more thing is that sometimes you see Bursa like having mini crash because they go amplify the negative news. So its important you have more research and reading. Reading means selective reading, not reading rubbish news and materials that add no value to you.
Prospect
Balance Sheet
Bank have RM36 mil and no borowings, cash flow from operations is positive.
EPS is 2.3 sen this quarter. Assuming conservative of 1.5sen per quarter thus 6 sen/year
Let's take PE of 10, 6 sen x 10 = 60 sen
And this is a tech stock, so I also don't know why PE for this Company is so low. Another point I wanted to highlight is that the volume is all time high today 12/8/2020.
When looking into a Company like tech stocks a question always need to be asked is moving forward post Covid-19 how our environment would be? Now many people stream live from Facebook everyday to promote and sell their product, some smaller Company resort to remote working place, such as positioning their staff in shared work place etc...Thing are not same anymore. Business got to change or you prepare to be replaced. Covid-19 actually eliminate weaklings and only the strong survive. I think you guys can already see this. Even if you're an SME, it is so important that you sell on Lazada and Shopee itself. You don't setup? Wait to close shop. This time around it is also a good opportuniy to venture to become an entrepreneur. Barrier of entry is low with so much opportunities.
Balance Sheet wise and performance I don't see any issue aside from dillutive shares. Prospect remain bright. Got money in the bank, and they disposed off previous business untill now already become full IT Company. Any other catch or not if you ask me? I don't know. I see figures is no problem, but sometimes we will also ask macam something wrong. Why suddenly so good one. Maybe from the transition of old business to new business people still don't understand it yet. Based on what the news flow, I understand they have been in the IT business of ERP and IoT for like a year already? So for me seems like you kind of see one year of performance already. This unknown variable is that decision you think and make for yourself.
My opinion is the name of this Company is ugly. It is called Aturmaju Resources Berhad. Maybe need to change to something like Ironman, Elon Musk, or something related to it la. Name is also important one ok. You need to represent it to something that reflect ERP and IoT. On the other hand, most people are still at the pre-Covid thinking so it's not easy to digest this since it is a big change. Thus I do see a very good long term prospect for this Company. You can ask any FA gurus if ARBB is good, and all of them will tell you it is, including me.
I'm not sure why ARBB stock comments there the people like to argue between each other for no reason =.=". Another thing is I find it funny is they like to curse the substantial shareholder which is Datuk Seri Liew Kok Leong ("Fatty Liew").
Another article published today, before the announcement, however did not get the chance to pinned in blog of the stock, due to i3investor being selective in putting. Sometimes, quite a lot of article writters but got omitted by i3investor. I guess you need to write a lot for them to get published.
https://klse.i3investor.com/blogs/gmarb/2020-08-12-story-h1511673977-An_undervalued_stock_that_people_trying_to_depress_and_buy_more.jsp
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https://klse.i3investor.com/blogs/BabyAceStockAnalysis/2020-08-12-story-h1511675681-ARBB_7181_Q2_Results_By_No_1_Analyst_in_i3investor_BabyAce_12_8_2020.jsp
