Posted by bojed > 2021-11-16 09:52 | Report Abuse

It looks like that negative goodwill has been ARBB's theme for two consecutive QRs now LOL!

https://www.theedgemarkets.com/article/arb-2q-net-profit-nearly-doubles-rm1628m

Posted by gkent2000 > 2021-11-16 10:07 | Report Abuse

Breaking 0.20 !!!!!

Posted by jokurprg > 2021-11-16 10:10 | Report Abuse

Nice move ！

Posted by line > 2021-11-16 10:28 | Report Abuse

Slowly will go down.... better sell

Posted by neonstrife > 2021-11-16 10:41 | Report Abuse

=)

Posted by line > 2021-11-16 11:46 | Report Abuse

Retailers buying bit by bit

Posted by line > 2021-11-16 11:46 | Report Abuse

No huge investors saw it as an opportunity

Posted by blackchicken > 2021-11-16 11:49 | Report Abuse

Still very low PE, multibagger stock

Posted by hoot9eonly > 2021-11-16 11:49 | Report Abuse

Hehe... How you know ?

Posted by hoot9eonly > 2021-11-16 11:50 | Report Abuse

Prophet line. Blow water number one.

Posted by blackchicken > 2021-11-16 11:51 | Report Abuse

Awards Arbb has won so far

https://www.arbberhad.com/awards

Great opportunity to accumulate the stock

Posted by FlyFried > 2021-11-16 14:32 | Report Abuse

Why? EH.

B4 PROFIT announcement, price dropped from 30 s3n over to 15 sen.

Then profit announcement, price went back up a little to 20 sen.

Now what, continue coming down or up?

Second part of the eh.

Posted by hoot9eonly > 2021-11-16 15:04 | Report Abuse

Up and down , down and up

Posted by hoot9eonly > 2021-11-16 15:04 | Report Abuse

Nice

Posted by Stockisnotfun > 2021-11-16 15:04 | Report Abuse

Whatever wait after right issue only see. The right issue price estimated is around 0.120 so after diluted will drop at around current range. Seems fair enough

Posted by bosskufanboy > 2021-11-16 15:14 | Report Abuse

Congrats to those that caught the dip, hope you manage to take some profit

Posted by line > 2021-11-16 15:46 | Report Abuse

So everyone .... party is over ... sell whatever u can

Posted by line > 2021-11-16 16:01 | Report Abuse

Want to see how it drops?

Posted by line > 2021-11-16 16:21 | Report Abuse

But no potential

Posted by goodiewilly > 2021-11-16 16:25 |

Post removed.Why?

Posted by goodiewilly > 2021-11-16 16:27 |

Post removed.Why?

Posted by FlyFried > 2021-11-16 16:39 | Report Abuse

I have that dream too once.

Posted by FlyFried > 2021-11-16 16:40 | Report Abuse

As on today I make 3k

Posted by bosskufanboy > 2021-11-16 17:42 | Report Abuse

Big angpau next year?

Posted by bosskufanboy > 2021-11-16 17:42 | Report Abuse

Thanks to panic seller last week, most of here manage to buy the dip and profit some

Posted by blackchicken > 2021-11-16 18:27 | Report Abuse

Flash - ARB volume spikes after reporting profit jump https://www.theedgemarkets.com/article/arb-volume-spikes-after-reporting-profit-jump

Posted by blackchicken > 2021-11-16 18:45 | Report Abuse

https://www.nst.com.my/business/2021/11/745872/arbs-q3-net-profit-surges-rm336-million-revenue-stood-rm773mil

Posted by blackchicken > 2021-11-16 19:03 | Report Abuse

What further amazes me is their cash flow!

For a prolonger period of time, the market had been doubting ARBB’s financial performance due to their long cash conversion cycle nature. But little does the investors know, the ERP business model is more of a collaboration model, and the lockdown had hampered their collaboration partner, so there goes the cashflow of the company. But as the company and its associates is experiencing growth now, we could see that the cash flow is flowing back to ARBB, and we could see that the company had RM35.32 million in their war chest for now.

https://klse.i3investor.com/blogs/sss/2021-11-16-story-h1593866291-Important_Updates_on_ARBB_KLSE_7181_3rd_Quarter_Financial_Results.jsp

Posted by longtermvalue > 2021-11-16 19:14 | Report Abuse

RM33.59 mil profit consists of RM33.88 mil negative goodwill? can someone help to explain if this is real profit?

Why need right issue if have RM33mil? I just need some answers

Posted by blackchicken > 2021-11-16 20:35 | Report Abuse

In addition, its bottomline was also boosted by the increase of negative goodwill of RM21.2mil, which arose from the acquisition of a subsidiary.

ARB told the stock exchange yesterday that its net profit was recorded at RM33.59mil, as compared to RM8.4mil in the previous corresponding quarter.

https://www.thestar.com.my/business/business-news/2021/11/16/arb-earnings-rise-four-fold-in-third-quarter

Posted by blackchicken > 2021-11-16 20:36 | Report Abuse

RM33.59 mil profit consists of RM21.2 mil negative goodwill.

Posted by value_seeker > 2021-11-16 20:47 | Report Abuse

Something dont feel right dont know why. After the Fintec story this feel like so so funny. The next 6 months will show whether this view is true or not. Just feel why a company that is making tonne of money need to do right issue. Making money but never give dividend. Fintec also make tonne of money and never give dividend with trend such as right private placement.

Posted by blackchicken > 2021-11-16 20:54 | Report Abuse

It is common for tech companies not to pay any dividends at all. They want to prefer to propel growth without paying any dividends.

Posted by aasvogrl > 2021-11-17 05:19 | Report Abuse

3388万是3个季度合起来的负商誉，这个季度是2120万，实际利润也就是3359万减2120万，等于1239万，是不错的业绩。

Posted by pirate123 > 2021-11-17 09:33 | Report Abuse

when hoot9eonly said up up, it is equivalent to down down

Posted by line > 2021-11-17 12:49 | Report Abuse

Hehhehe... what arbb got to do with chip shortage.... oh ya my shop also affected.... difficult to get iphone

Posted by line > 2021-11-17 12:50 | Report Abuse

Brothers arbb won’t use that many chips..... stop posting unrelated studies

Posted by line > 2021-11-17 12:52 | Report Abuse

Those who listened to my advice to sell at 19 cents n 20 cents u guys are lucky. It was just simple retail reaction to the profit

Posted by line > 2021-11-17 13:06 | Report Abuse

U all must understand, if negative goodwill is removed, the profit is only 8 mil. Negative good will by certain standards not considered a gain

Posted by line > 2021-11-17 13:06 | Report Abuse

So sell

Posted by MarcusBioTech > 2021-11-17 13:32 | Report Abuse

I agree with Contributor Line that Negative Goodwill is a ONE OFF gain reflected in P&L. That I am thankful over factual remark.

Let’s benchmark with hot Tech stock JF Tech w ARBB.

9 months Profit = 56mil
Less One off gains = (36m)
Profit from operations = 20mil

Extrapolate to 12 months, expect
Turnover = 248 mil (assumed 20% increase revenues due to consolidating acquired 3 new co)
Net Profits. = 27mil (assumed no increase in profits due to increase growth in set up costs)
Market Cap = 105mil
PE Ratio = 4X! (stripping off ONE OFF GAINS ON ACQUISITION)
Patents = 10 target Q1 2022.

Benchmark to
JF Technology Berhad
Revenues = 50 mil (assume 20% increase, while factories in Kota Damansara & China plants under construction}
Net Profits = 20mil
Market Cap = 1,386 mil
PE Ratio = 69X!
Patents = 13

“The true investor welcomes volatility … a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses.” - Warren Buffett.

Verdict: Accumulate ARBB on dips.
Parent : 17 sen
Warrant : 3.5 sen

Note: Chips shortage affects iPhones sale but not IPHones software games & Apps. Another advantage of software co over hardware maker.

Disclosure: I am long on ARBB PA and may buy in next 48 hours of writing.

Posted by MarcusBioTech > 2021-11-17 13:38 | Report Abuse

Bonus Point

Corporate Governance risk is low. Pls see my earlier posts.

Keep happy and earn intelligently.

You don’t have to be right all the time. Make more right Investments decisions over wrong ones. (Warren Buffett)

Focus on Gig Economy. You can earn too without capital, use intellectual capital instead. Think Grabcar model

Cheers.

Posted by amateurJR > 2021-11-17 13:45 | Report Abuse

Haha another serba in the making

Posted by neonstrife > 2021-11-17 15:01 | Report Abuse

https://klse.i3investor.com/blogs/sss/2021-11-16-story-h1593866291-Important_Updates_on_ARBB_KLSE_7181_3rd_Quarter_Financial_Results.jsp


Important Updates on ARBB (KLSE: 7181) 3rd Quarter Financial Result


Before we jump into the financial mumbo-jumbo, I would like to say that the results for ARBB had really surprised me as an investor. Not only did they overdelivered in their results, but they had also planted an additional surprise under the cash flow statement, which we would go into it shortly.

For now, let’s first have a quick look on the performance of the company.

Ironically, I had just published another article discussing the prospects and valuation of ARBB. As we had discussed many times on the ERP and IoT business model, we will not bore you with the details in the article.

For their 3rd Quarter performance, the company had registered a revenue growth in both the ERP and IoT segment, which contributed to their top line increment on a year-on-year basis. However, we noticed that the gross profit is lower than the EBIT, how is it possible?

In August 2021, the company had acquired 51% of equity interest in ARB WMS Technologies Sdn Bhd or formerly known as Bluewave WMS Technologies Sdn Bhd and 70% of equity interest in ARB Workforce Software Sdn Bhd. They might have contributed to the bottom line of the company, too, but most importantly, they had created negative goodwill for the company.

Let’s take a look at how Investopedia explains negative goodwill.

“In business, negative goodwill (NGW) is a term that refers to the bargain purchase amount of money paid, when a company acquires another company or its assets for significantly less their fair market values. Negative goodwill generally indicates that the selling party is distressed or has declared bankruptcy, and faces no other option but to unload its assets for a fraction of their worth.

Consequently, negative goodwill nearly always favors the buyer. Negative goodwill is the opposite of goodwill, where one company pays a premium for another company's assets.”

In short, the acquisition of equity interest for the new business of ARBB had positively contributed to them.

By comparison with 2nd Quarter performance, not only did ARBB had doubled their gross profit, but also delivered substantial growth in EBIT, too. It was also contributed by the negative goodwill from the aforementioned subsidiaries.

Now, even if we were to remove the negative goodwill for the company – which would in turn, be unfair for them, the company is still delivering impressive financial results. What further amazes me is their cash flow!

For a prolonger period of time, the market had been doubting ARBB’s financial performance due to their long cash conversion cycle nature. But little does the investors know, the ERP business model is more of a collaboration model, and the lockdown had hampered their collaboration partner, so there goes the cashflow of the company. But as the company and its associates is experiencing growth now, we could see that the cash flow is flowing back to ARBB, and we could see that the company had RM35.32 million in their war chest for now.

So, what about the prospects of the company? I think it was pretty much self-explanatory.


Also, people had been in a hot discussion about the rights issue placed by the company, to be fair, rights issue might churn some weak holders off as they do not have the capacity to invest more into the company. I would like to once again illiterate that the company is trading at less than 2 times PER. No other technology company would trade at such a discount for a prolonged time. So, this might be the best time to invest in the company.

Posted by line > 2021-11-17 16:00 | Report Abuse

Marcus pandai. Chip shortage doesn’t effect software developers. Can u please explain to hoot9eonly. Kesian dia.

As I said yesterday n today n all the time, this counter is really fishy. No free lunch in this universe. Follow the top 2%. No large investment funds bought. Already 8 quarters.

Posted by ConfortZone > 2021-11-17 16:04 | Report Abuse

any of you if you want to sell, pleas sell more to the level as last week. Happy to buy from you

Posted by ConfortZone > 2021-11-17 16:08 | Report Abuse

It is either you have sold low and bought high (in this case eating sour grape) or hoping to buy low by badmouthing the company.

Posted by ConfortZone > 2021-11-17 16:12 | Report Abuse

What serba in the making? i suggest you go read the AR2020, which was audited and approved by SC and BURSA, read the revenue recognition page (last section of the report), read how the company categorises receivables (which is 180 - 210 days if you do know how to read), how the company sell the services and products etc. You will know you are just spreading lies here. The company is solid and strong.

Posted by line > 2021-11-17 16:30 | Report Abuse

Serba dinamik submitted similar stuff

Posted by bosskufanboy > 2021-11-17 16:32 | Report Abuse

Hahaha, so many jokers comparing arbb with serba