Investors should notice by now, that the only performing sector in bursa is the technology sector. And recently, a few stocks – just with the tag or name with “TEC” had seen a crazy return on share price – for completely no logical reason.
But nevertheless, hot monies are flowing into the technology sector. So as investor, what should we do?
We can either:
Today, I would like to introduce you to ARB Berhad (KLSE:7181). ARBB had been an “underdog” in the technology with their impressive earnings and growth prospect in the ERP software industry, and IoT in the hardware & software industry.
By using YTD data as a gauge, we can see that not only ARBB had gone down by 7.5% in share price – but also underperform against the comparable technology index, which has gone up by 30.0% as a whole.
Why has ARBB been under looked?
The missing ingredient in ARBB has been the lack out of “precision engineering”, “E&E”, “EMS”, “Automated Test Equipment” and on and on. You can make a very long list out of these companies.
Currently, ARBB is trading at 3.43 times in PER, and this is truly sad for a company with a technology background. I find this article in mandarin explained ARBB quite well and investors should refer to the said article.
https://www.facebook.com/chuxininvestment/posts/274369521043764
To me, ARBB looks just like CENSOF, or DNEX before the market realize their true potential. Take a look at both DNEX and CENSOF share price trend movement.
Why do I use CENSOF, or DNEX as a benchmark? This is because both of these companies are involved in the software end of the technology sector, and had been neglected by investors for a very, very long time.
I think ARBB is just lacking the theme to fly, with a low PER of 3.43 times.
By all means, this is not an article to call buy or sell, but just a sharing of my opinion in the technology sector. Hope this helps!