Massacre of valuation of technology stocks are happening globally, as we see big names such as Meta, Alphabet and Amazon experiencing deep devaluation in share price.
For seasoned investors however, this in fact represents a good chance for investing in technology stocks over the long term.
Unfortunately, most of the technology stocks had overstretched valuation, except for a few such as G3 Global.
Due to some peculiar reasons, investors doesn’t seem to be favouring G3 Global despite the share price of the company is only standing at 3 cents after the massive selloff from Green Packet Berhad, an infamous company where many investors shun due to excessive fund-raising activities and unrealistic business development plans.
In fact, this could be a very good thing as G3 Global is no longer associated with Green Packet.
Sadly, many investors would still think that both of them are closely related, and Malaysia investors generally do not like penny stocks,
coupled with some kitchen sinking and restructuring exercises undergoing for G3 Global, it is understandable why investors are not rushing into the company at the current price level.
Even so, investors should still look into G3 Global before the share price take off.
Back on 8th April 2022, the company had diversified their business plan to include the healthcare related business with distribution of COVID-19 test kits, this is a temporary boost to the financial numbers of the company, but it will not be the key reason why investors should invest in the company.
On 5th May 2022, the company was awarded a total contract value of RM118.0 million to design, supply, install, testing and commissioning for Airport Integrated Security and Safety System at KLIA and KLIA 2 in conjunction with SenseTime, a mega sized AI software provider.
For the benefit of investors who are new to G3 Global, the company is an ICT and AI expert company. Both the industry are considered relatively new, and all AI companies are subjected to a tipping point before their financial numbers truly take off.
A cyclical graph from Gartner perhaps could explain better on AI development in 2022.
At the current juncture, the revenue of G3 per quarter is approximately RM1.5 million, and once the new contract from KLIA and KLIA2 were to kick off, a massive boom in revenue and profit will be in place. As at today, the company is merely trading at a market capitalization of RM87.1 million, or 3 cents per share.
In other words, the investment risks for investors to buy in at the current level is extremely low!
Disclaimer:
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by US or any third-party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. US is not a fiduciary by virtue of any person’s use of or access to the Site or Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold US, its affiliates or any third-party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.
