As investors are aware, DBT is the acronym of Direct Business Transaction. It is a method of crossing shares without going through the open market, which very buy and sell transaction would affect the current stock price of the company.
Some smart investors also use DBT as an indicator to identify some potential investments under their sleeves. For example, the company we are going to discuss today did 13 million of DBT today!
Today, ARB Berhad (KLSE:ARBB) had a total of 13 million shares crossed off-market, and the average value per share was crossed at the price of 33.0 cents per share, which is at a discount of 12.0 percent based on today's LDP.
What does this mean to investors?
It means the company had crossed 13 million shares to someone. And based on the company’s latest copy of annual report, only Top 11 ranked and above had 13 million shares on hand, and the rest are mainly the “big shareholders” of the company! If they were to transact off market, based on their shareholding it would trigger an announcement to the public.
But it doesn’t.
Which means, the company wanted to cross some shares to this “particular party” without getting noticed! Based on our team’s experience, this normally means that this new shareholder of the company had something to do with the company’s future development.
Upon cross-checking the public announcement and news of the company, I’ve noticed that ARBB had repeatedly mentioned about cloud business in their recent exposure in the market.
Article on FocusMalaysia: https://focusmalaysia.my/featured/arb-sees-cloud-computing-as-its-magic-carpet-to-scale-greater-heights/
Article on HK Yahoo: https://hk.finance.yahoo.com/news/arb-berhad-upbeat-fy2021-prospects-053000759.html
Article on CityPlusFM: http://cityplusfm.my/media-outreach/?release_id=65892
Article on MalayMail: https://www.malaymail.com/section/money/mediaoutreach?release_id=65892
However, if you are familiar with the company, it is very likely that you wouldn’t find ANY cloud business on going on the company apart from it’s ERP and IoT business. So, if my suspicion is correct, the 13 million DBT that are crossed at the discount, are very likely to its future business partner, but it was not fixated if it’s a partner in the cloud game.
That being said, if ARBB would really venture into cloud, it’s share price would definitely skyrocket like DATAPRP, who is also linked with MyDigital cloud services!
I’m looking forward for the next limit up for ARBB!