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Author: newbie8080   |   Latest post: Thu, 29 Oct 2020, 10:19 PM

 

Time to Reflect on Glove investing

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Time to Reflect on Glove investing

Points: Looking at Topglove, Hartalega, Supermax and Kossan

Initially, I too was very skeptical about buying gloves counters. Historically, most pandemic in the past such as SARS, EBOLA, MERS,etc are very short in nature less than 10 months and glove manufacturers have good 2-3 quarters of excellent results and profit growth between 70%-150% in that period depending on the companies sales and market share.

 

Honestly speaking, have we ever take a pause and reflect on the starting point of COvid-19, the severity(compared with other previous pandemic)?
Gloves are not important during these periods?......Some comments from members

 

It's been more than NINE(9) MONTHS since the first sighting of Covid-19 in Wuhan,China.

 

Where do you think we are in the pandemic cycle? [Beginning, Shoulder, Peak, Declining]

https://klse.i3investor.com/mqtrader/sf/chart/stk/7113

 

https://klse.i3investor.com/mqtrader/sf/chart/stk/7106

 

https://klse.i3investor.com/mqtrader/sf/chart/stk/7153

 

https://klse.i3investor.com/mqtrader/sf/chart/stk/5168

Most of you would agree that it's probably only SHOULDER. Maybe not?

 

Reason is many countries haven't even manage to close down on Wave 1.

 

Wave 2 would probably occur for countries in the northern hemisphere that experience winter annually.

 

Besides that, many talk about vaccine. The World Health Organization estimates that 1 billion people worldwide get the flu every year

 

HAVE YOU EVER THOUGHT ABOUT FLU VACCINE WHICH WAS CREATED DECADES AGO BUT STILL KILLING PEOPLE WORLDWIDE ANNUALLY.

 

The World Health Organization estimates that 290,000 to 650,000 people die of flu-related causes every year worldwide

 

Whether or not glove investing is for you, just take a snapshot of the top 4 companies, Topglove, Hartalega, Supermax and Kossan in the last 10 years, their earnings, dividends and profit growth in the last decade rather than currently.

 

Glove valuations for Topglove, Hartalega, Supermax and Kossan overstretched?

  1. Topglove- PE <6 for 2021 earnings
  2. Hartalega- PE<17 for 2021 earnings
  3. Supermax-PE<8 for 2021 earnings
  4. Kossan- PE<10 for 2021 earnings

 

Investment Banks and Brokerages are certainly valuing them this way [Many of them are grads holding some form of certs eg: CFA and paid a fix salary monthly like most of you.]

 

Note: Do your own valuations is the best way to learn investment. Use their valuation sparingly.

 

Reflect it on other counters with similar method, then make your choice if it is worth investing long term (>5 years) or mid term (>2 years). I do not recommend short term investment as it is pure speculative and it is not worth putting your hard earn money in a gambling mode.

 

 

To the naysayer, sour grapes, I respect your opinion and value them. You had added additional variables and perspectives that I might had missed earlier.

 

And please sing a song to the old man who blogs daily and the little girl who speak to old man.
 

 


https://www.youtube.com/watch?v=RKaxRYJ5AMY

 

 

https://www.hopkinsmedicine.org/health/conditions-and-diseases/coronavirus/coronavirus-disease-2019-vs-the-flu

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  3 people like this.
 
GiantPanda Very smart rich aunties uncles made a lot of money from their business or high income job

enter sick Bursa as the dumbest investors lost their blood sweat money

blindly followed flipflop manipulative analyst reports

written by Never-Bought-A-Single-Share fresh graduate analysts

controlled by crook evil investment banks
19/09/2020 1:50 PM
Shanjing777 Well said newbie8080. Do your own analysis. Dont just follow blindly....
19/09/2020 7:30 PM
CharlesT This year just few months ago the new normal for glove co is PE 100 to 200...

Few months later in 2021 the new normal then for glove co could be PE below 10..
20/09/2020 10:46 AM
YapPuaykee Which market forces can affect Malaysia Gloves Manufacturers' business PERFORMANCE more drastically?

(A) The lack of Fed's QE liquidity to stimulate Dow Jones and Nasdaq market indices or

(B) The governments around the world with failed efforts to uncheck the deadly ferocity of Corona Virus Pandemic, that even best known doctors and hospitals still can't stop infected patients from dying by the tens of thousands everyday?
21/09/2020 9:43 AM


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