Calleranion, don't attack Roger, he is lighthouse. Follow what he says you will be billionaire. He said goes up you short, if he says goes down you buy. Simple when Genting open I want to bring 黑仔王 go.
On last Friday, dated 5th February 2021, numerous investors had shift their focus on YBS International Berhad (KLSE:YBS), which was previously known as LNG Resources Berhad, and the stock had rallied by over 30 percent in a single day. We believe this was due to the raging demand of investor to seek for undervalued technology counter to invest their capital into it, and YBS, just happened to be one of the “gem”.
But based on the technical chart, it seems like YBS is poised to retrace and profit taking activity is inevitable. The next question should ask is where would the money flow into after YBS?
The plain and simple answer would be – another technology company.
Based on our analysis, there are currently a sum of 90 technology companies listed in Main & Ace Market. However, more than half of these self-proclaimed technology companies are loss making companies, which made up to 46 of them having a negative PER to-date.
We did another study on the remaining 44 technology companies which are profitable and portray a positive PER. The average PER for these company is 66.74 times, seems high and crazy, right?
No. if you would compare the statistic with any financially matured stock market, this is quite the standard, or undervalued valuation for technology companies!
The obvious next step that we need to do is to identify out of the 44 technology companies, which has the deepest value in it, a.k.a. lowest valuation? We must be careful and apply quality and quantitative value investing in this approach as not sustainable profitability or companies that show a one-off profit that inflates their EPS should not be regarded as a candidate for our stock pick. Fortunately, I’m able to pinpoint this ultra-undervalued gem – ARB Berhad (KLSE:ARBB).
Based on our study, the price movement of ARBB shows a divergence between the company and Malaysia technology index as a whole. Over the past 3 months, Bursa Technology Index had delivered a 37.49% ROI while ARBB only delivered 7.84% in return. If we are being realistic here, there is a bare minimum of 20% upside for ARBB!
Bear in mind, we are not talking about 50%, 100% ROI within a short period of time. In my humble opinion, a 20% return before the Chinese New Year break from trading is easily achievable. Just look at the divergence! And now, to enhance your confidence level on the company, we will dive deep into value.
As I mentioned previously, our studies showed that on average any profitable technology companies arehaving a 66.74 times PER. While ARBB is trading at a mere 3.51 times PER! There must be a huge misjudgement in terms of profitability of this company that investor missed out. Also, the lack of coverage of this company from “gurus” had left it a untouched gem, waiting for investor to harvest it. Let’s just say ARBB could achieve 10 times PER by end of 2021, what is the return of this company for you
We also mentioned above qualitative and quantitative studies must apply to technology companies. For the past 8 financial quarters, ARBB had delivered an average profit of MYR 8 – 9 Million. There were no one-off profit in these quarters, and the profit had remain consistent throughout the financial year. So, ARBB is another solid technology company that remains uncovered.
Take our advise and ARBB should be your “Ang Pao” from us before Chinese New Year. Of course it’s up to you to trust us, or leave out the opportunity. However based on our studies, a 20% rally is approximately 5.5 cents away, how hard would it be?
lol, so many ppl blog about this junk and it still drop dead on the floor :D all these are bull shit, this junk only worth 10c+ after PA fully converted to mother share.
Roger, this one not make sense, if you say so, means ARBB maybe have a sky rocket QR aldi. Because they count their income until they late deliver QR. hahahahhaha.....
Bro, this is not the way to judge a stock man. None of us can say can confirm Arbb will have a good outcome but if you say late deliver is gg. You must be a panic investor.
• From timber processing previously, ARBB has now ventured into the information technology (IT) business, focussing on Enterprise Resource Planning (ERP) and Internet of Things (IoT) system solutions.
• The business transformation initiative has borne fruits after the Group registered net profit of RM32.8m in FY Dec 19, up from RM4.2m the year before. And the earnings momentum continued in FY20 with ARBB’s bottomline coming in at RM23.7m (+8% YoY) for the nine-month period ended September 2020.
• In addition, its debt-free balance sheet is backed by cash holdings of RM26.9m (or 5.8 sen per share) as of end-September last year.
• On the chart, ARBB shares are currently hovering near a support line that stretches back to September last year. The stock is also eager to breach a descending trendline at this juncture.
• With the stochastic indicator showing the %K line just crossed above the %D line when both values were below the oversold level recently, there is a fair chance that the share price would stage a technical breakout ahead.
• That being the case, the stock could be on its way to test our resistance thresholds of RM0.32 (R1; 14% upside potential) and RM0.37 (R2; 32% upside potential).
• We have placed our stop loss price at RM0.24 (or 14% downside risk from yesterday’s close of RM0.28).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Nagona
2 posts
Posted by Nagona > 2021-02-07 08:48 | Report Abuse
My forecast this coming monday the price will spike to 0.29..