Value investing has always been touted as the Holy Grail of investing.
Buy below intrinsic value. Sell when stock prices move above its intrinsic value.
GARP (Growth At a Reasonable Price) is also a component of value investing. As long as a company grows its financials, investors buying at not so cheap prices will still see share prices going up eventually.
Main Board. Tech stock. Formerly in timber business, currently changed to ERP business. (From Annual Report 2021, ERP is an integrated application that an organisation can use to collect, store, manage and interpret data from many business activities. ERP provides an integrated and continuously updated view of core business process using common databases maintained by a database management system.)
Revenue & profit growth have been incredibly strong in recent quarters. Yet cashflow has been incredibly poor, even negative in many quarters. Trade payables is higher than cash. The proposed rights issue in Nov 2021 spooked investors. Share price dived.
Analysts ignored ARBB. But at ARBB forum, there are some promoters over there.
Should you trust analysts or the forumers?
Peter Lim Tze Cheng mentioned before that investors buying stocks of fundamentally strong companies are value investors, while those buying stocks of companies with little fundamentals are also value investors. It's just that both have different sense of value. One sees value in fundamentally strong companies while some see value in
goreng less-financially sound companies.
My definition of value investing means buying into companies that have most of the following features: low share prices, low PE, dividend paying, strong track record of financial performance, share price lower than NAV, coverage by analysts, top funds' names appearing in Top 30 shareholders list, etc.
Do I think ARBB is A Really Big Bargain?
Avid readers of mine would know the answer.
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author does not have any interest in the stock listed above.
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