-->

Type something and hit enter

Pages

Singapore Investment


On

The greatest investor of all time – Warren Buffett did not just earn his name by his wisdom in the world of investment, he also outperforms the market over years by one key characteristic – PATIENCE.

 

As I had shared since January on the true value of ARB BERHAD (KLSE:ARBB), Investors are getting somewhere around 50% - 60% return in just a month time. This is base on the conservative assumption of buying this company’s share at the price of 25.0 cents to 26.0 cents. Hope this Ang Pao satisfies all of you!

 

Now back to the main story. Based on my understanding, ARBB had always been an undervalued gem which is being manipulated by forum pundits, I believe there are a group of them who:

 

  1. Spreading fear amongst investors via fake news.
     
  2. Creating fake account(s) attempt to brainwash investors, fortunately everyone in the forum are smart enough to not fall for their tricks. I've attached several screenshots to reveal them.
     
  3. Having a group of operators to create fake sell queue on ARBB, but lost lots of money during the rally as ARBB outperforms the market.
     
  4. Failed to attack ARBB, and hence turn into another undervalued gem – AGESON BERHAD (KLSE:AGES)! 

     

 

 

Interestingly, this particular user “icst1975” had only commented in AGES since 12th December 2020, 10:54 A.M. And obviously you can see the writing style of this particular user is vastly different and there is a 3 months empty period in which he did not commented (he or she was previously active on MYEG, perhaps the account was being use by other user?). Suspiciously, he was also replying to himself. Perhaps a mistake in forgetting which tab your fake account was on?
 

You may review his comments over this link: https://klse.i3investor.com/servlets/cube/post/icst1975.jsp

 

 

 

As someone who loves to study deep onto company value and actually perform forensic studies, I believe I have my grounds to say that this particular “forum user” is one of the syndicate who failed to depress ARBB’s stock price, and now attempt to depress AGES’s stock price!

 

However, being someone who truly understands accounting as well as fundamental analysis, I would like to point out some of the mistakes he made on his "factual statements".

 

  1. One major RED FLAG spotted in FY2020 Report is that the intangible assets (commonly known as "Good Will") had increased by a huge sum of RM32.7mln to RM40.96mln from only RM8.26mln in the previous year. I think the RM32.7m increase in intangible asset should be more correctly classified as actual Losses incurred and not parked into a non recoverable "Goodwill" as a Company intangible asset.
     

Wrong. Intangible asset could be intellectual rights such as branding power, patents, trademarks, copyrights and so forth. AGES had previous invested heavily into IBS system, which is a requirement by the government for construction company to utilize this system to enhance the speed in construction. I believe coupled with AGES’s growing brand name in the construction, property development as well as joint venture right with MBI Kedah, this “intangible asset” could be turn into real profit soon. No such thing as actual loss should be recorded in the books. Please do some homework first.

 

  1. Other RED FLAGS include:

Grant Thornton Malaysia (AF 0737) resigned as Auditors of the Company with immediate effect from 6 August 2020, 22 days prior to the Company FY2020 Q4 announcement. Grant Thornton was first appointed as Auditor during AGM on 25 Nov 2019. Company appointed a new audit firm in May 2020 but the new auditor also resigned in mid August 2020. Did they, as financial auditor, found something they could not go along with what their client wanted to report?
 

Mr. KEE YONG CHIN, AGES newly appointed CEO on 30 April 2020 resigned abruptly on 31 Dec 2020 after only 8 months. Did he found or smell something which he could not work with if he stays on as CEO?

 

Interesting comments. Firstly, Grant Thornton has made a name for being having bad accounting treatment to construction companies (I.e. Strict treatment on trade receivables which is unfair to construction and property developer company, and bad amortization period). Try to look for other companies who are with Grant Thornton, are they in the construction sector or property sector? I assure you, they are extremely rare. So do you mean any other construction or property companies who are not using Grant Thornton as auditor is a fraud?

 

Secondly, AGES is a rapidly turning around company. I would like to remind investors that the resignation period was amidst COVID-19, which lots of companies are having change of management to better handle the COVID-19 situation. If you are new to listed companies, one do not simply appoint a director without months of negotiations and due diligence, and Mr. Kee would not join if he finds the company fishy. I believe he had successfully led the company through COVID-19 and AGES had remained profitable within this period. His endeavour could not be missed in the success of AGES.

 

  1. AGES ma announcements on many very large "business deals" with overseas customers on sand exports even though the Company does not have a sand export licence. All of them were just MOUs and have not progressed into real Contracts so far. It is just amazing that a listed company appeared to be not following the needed due process and procedures. For example, the Company should have sought shareholders approval first (shareholders approval was only obtained in an EGM in Dec 2020) before entering into major sand mining and export businesses dealings with overseas customers. The major risks are damage of reputation and confidence when the necessary approvals from authorities and or shareholders were not obtained.
     

Seriously, are you even following this company? *Sigh

https://www.theedgemarkets.com/article/ageson-forms-jv-kedah-investment-arm-venture-sand-mining

 

They even formed a JV to undertake the mining, supplying and exportation of silica sand to a Korea company who specialized in making glass products. You may seriously need to do some more homework.

 

So, Mr / Miss icst1975, if you said you loss tons of money by investing on AGES, had you cut your losses? Or are you still holding onto it? Perhaps you could show any screenshots as evidence that you actually lose money in this counter? How could others profit from this company? I eagerly await your amusing answers.

 

P/S: AGES would still hit 25.0 cents with or without intervene of this group of “sharks”. Let’s hold onto it!

https://klse.i3investor.com/blogs/HIDDENGEMLIST/2021-02-17-story-h1541114275-We_Defeated_The_Sharks_On_This_Counter_But_Now_They_Are_Angry.jsp

Back to Top