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Author: CynicalCyan   |   Latest post: Sat, 23 Oct 2021, 11:59 PM

 

TOPGLOV vs GENETEC: Dawn of Malaysian Equities

Author:   |    Publish date:


Fight night. 

The greatest stock match in the history of 2021 Bursa Malaysia:

Healthcare versus TechDowntrend versus Uptrend; Main Market's Blue Chip versus ACE Market's promising turnaround!

 


TOPGLOV

GENETEC

Make & sell gloves

Design & build automation equipment & vision-inspection systems

Consistently profitable

Inconsistent track record of profits

Constantly pays dividends

Pays dividends in some years

PE 3.18

PE 307.64

Big name funds in Top 30 shareholders

 

Not many prominent funds among Top30

 

25.113 bil market cap

1.853 bil market cap

Top 1 most popular stock on klse.i3investor 

19th most popular stock on klse.i3investor

 

If you bought TOPGLOV at closing of 4 Jan 2021 and held until now, you'd get a painful 44% loss (exclud divs).

If you bought GENETEC at closing of 4 Jan 2021 and held until now, you'd get a whopping 1901% profit.

Does this mean, tech stocks will always outperform healthcare?

Would investing in ACE market stocks be better than investing in Main Market stocks?

Established blue-chip versus 

Does this show the full picture of both companies? 

What can we learn from this?

 

1) “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham.

Topglov was the love of Mr. Market in 2020.

But Mr. Market dumped her, and made Genetec his new darling in 2021.

What will happen in 2022?

Will Encik Pasar ambil berat Topglov in 2022 or 2023?

Whether Tech or Healthcare, it is the future prospects of the company's business that drives share prices.

 

2) A profitable company may not always be a profitable stock trade.

Topglov has been making many, many quarters of profits. Yet, share price wise, Topglov was heavily outperformed by one Genetec that has erratic earnings record in 2021. 

An investor has to realise that a company's quality may not equate to stock trading profitability for himself/herself.

 

3) PE-based investing does not work all the time. 

Just look at the mind-boggling PE difference of both companies. Especially if the business is a cyclical one. 

PE ratio is just one valuation method. There are many other factors to take into account before buying a stock.  

 

 

CLOSING THOUGHTS: 

The contrasting fortunes of these two companies is perplexing but interesting. 

Could this be the stockmarket trend going forward?

Would investors be shaken by this episode and forgo stock investment strategies based on company fundamentals, becoming pure technical analysis traders?

Or would investors transform into "diamond hands", holding their stocks for the long term?

Let's revisit them at the end of the year. 

 

Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author may have interest in some of the stocks listed above from time to time. 

Share this

  Mat Cendana likes this.
 
bpsiah I still believe RSS killed the glove counters. Allow RSS in GENETEC and see if it perform as well.
19/09/2021 1:36 PM
Albukhary Genetec is not a right candidate to compare, as Genetec is corner by small volume of investor.
I think D&O is better candidate, as this counter has many die hard retail supporter that believe in technology sector.
19/09/2021 1:48 PM
Birdie What a lousy comparison? There is so much manipulation and ‘dark ‘ side in KLSE. You would be better off to warn investors not to part with their hard earned money. Invest in what you know. And not partake in speculation .
19/09/2021 3:13 PM
super168 I always perplexed by Gloves and Technology. One consistently make money and super good profit but cheap prices. Not only Genetec. Can MPI matched the profit of gloves stocks?
20/09/2021 8:51 AM
holely what article is this? say = no say
20/09/2021 9:38 AM
Stockisnotfun Genetec obviously got people manipulate. SC never take any action. Once SC found out who is the one manipulate the Genetec will be durian runtuh. Trust me never invest tech stock in malaysia. Not worth it.
20/09/2021 10:25 AM
patrico8 One overcome by fear, the other on steroids.
20/09/2021 2:31 PM


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