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Author: Kukuman   |   Latest post: Sat, 15 Aug 2020, 5:22 PM

 

Supermax shareholders should not worry - Koon Yew Yin (You can give comment here)

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Supermax shareholders should not worry - Koon Yew Yin

Author:    |    Publish date: 

 



A few senseless commentators in i3investors were laughing at my buying so many Supermax shares recently. This has prompted me to write this piece.  

As shown by the price chart below, the price plunged from Rm 24.30 on 11 Aug to Rm 17.92 on 14 Aug, a drop of Rm 6.38 in 4 trading days. It has plunged   26.3% in 4 trading days. This unprecedented crash shocked all investors. 

As a result, many people called me to express their concern. Mr Ooi Teik Bee ranged me last night to seek my opinion. We are also wondering why all the glove stocks should be dropping so rapidly in tandem in the last few days. In most cases, one stock might drop but the other might go up instead. It looks like all the Investment Banks ganged up to push the glove share prices down so that they can continue to collect at cheaper prices.

 

Covid 19 pandemic is affecting everybody and all the listed companies with the exception of glove stocks and other medical products for the prevention of the virus. There are 1,100 listed companies in Malaysia. All the listed shares with the exception of glove and medical products have been dropping continuously due to the pandemic. Until the pandemic is under control, the demand for gloves will continue to exceeds supply and all the glove makers can easily increase their selling prices to make more and more profit.

All the Investment Banks have to cut loss to sell all their holdings to buy glove stocks.

My advice:

As I said many a time, any stock cannot go up or come down continuously for whatever reason. After sometime it will change its trend. In this case, the price correction is too severe to frighten all the sensitive investors. Investors must realise that Supermax has shot up more than 1,000 % in the last few months. So, this price correction should be considered that the company has no more profit growth.  

Supermax just announced that the company made a record quarterly profit in the history of the company. It will continue to make more and more profit as long as the pandemic is not under control.

All investors must look at the future of the company. It will give shareholder 1 bonus share for every 1 share held by shareholders and after the bonus issue, it will give shareholder 1 bonus share for every 45 shares held by shareholders.

I am sure this article will alleviate investors’ worry.

 

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  sharkdododo likes this.
 
Kukuman Sir, i thought you asked people to sell Supermx some time back. Why the sudden change of heart?
15/08/2020 5:23 PM
sharkdododo THe recent increase in their profit show that they will be able to achieve higher the next quarter. rm 30 not a problem. eps 30 cents. assume 4 quarters of 30 cents. 25 pe also give them minimum rm 30 bucks man. ignore the noises on new production. you think new production within 6 months can commission (run) meh. Vaccine? Vaccine use bare hands to develop meh. think about that man.
15/08/2020 5:29 PM
jolow take profit loh.
if not profit also hangus. Kosong saja
Dont be so greedy.
15/08/2020 5:31 PM
abang_misai Let's be sensible.

Fund managers accumulated huge chucks of glove stocks from March-July. When fund managers have kept lots of stocks, they will need good results to unload because that will be the only times many victims will rush in to buy.

Many said December is the best month to unload because record breaking results will be released. At that time, there will lots of competitors in the market. Vaccines could already be produced. .

When you have made enough, it's time to let go.
15/08/2020 5:36 PM
mf India akan hasilkan vaksin secara besar-besaran - Modi
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NEW DELHI: India bersedia menghasilkan vaksin COVID-19 secara besar-besaran sebaik saja mendapat kelulusan saintis, kata Perdana Menteri, Narendra Modi.
15/08/2020 5:37 PM
antidebt before fund manager unload in dec, i think i will unload early then them.
Once fund manager unload, it will triple limit down.
15/08/2020 5:38 PM
abang_misai @mf, lu apahal? Mau bikin takut sama pelabur(kaki judi saham) kah? hehe.

mf India akan hasilkan vaksin secara besar-besaran - Modi
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NEW DELHI: India bersedia menghasilkan vaksin COVID-19 secara besar-besaran sebaik saja mendapat kelulusan saintis, kata Perdana Menteri, Narendra Modi.
15/08/2020 5:39 PM
abang_misai it will be four-ple (4 times tumbling down).


antidebt before fund manager unload in dec, i think i will unload early then them.
Once fund manager unload, it will triple limit down.
15/08/2020 5:39 PM
gemfinder I think kyt stucked again. Vacine news is coming out everyday. By oct nov too late to run.
15/08/2020 5:42 PM
Kukuman Everyday people load, unload and reload. It is a game played by everyone. There are hundreds if not thousand deep funded establishment playing the game. But there are a few rogue fund managers trying to corner the markets. Sometime they can but all the time! Those have unloaded will reloaded again for sure. It is a circle played all year long !

Posted by abang_misai > Aug 15, 2020 5:36 PM | Report Abuse
Fund managers accumulated huge chucks of glove stocks from March-July. When fund managers have kept lots of stocks, they will need good results to unload because that will be the only times many victims will rush in to buy.
15/08/2020 5:50 PM
amsterdam The title should be supermax shareholder should be worry and unload fast.
15/08/2020 5:54 PM
abang_misai When Koon is bullish and says no worries, you are old enough to know what to do next.
15/08/2020 6:21 PM
BATFLY Imagine EPS of 30 and 4 qtrs equal 120..PE at 20 TP should be RM24.00 conservatively if earning is the same..
15/08/2020 6:22 PM
abang_misai Do you know what is meant by oversupply that is imminent? Those who are glove manufacturers are doing expansion. Those who do not know glove also do this venturing. Those products which will soon experience oversupply will only be assigned to a PE of 5 max
15/08/2020 6:27 PM
3mchildren Tqvm Mr Koon for always sharing ur views.
Pls clarify. U called a buy call on top hlove n offload supermax awhile ago
15/08/2020 6:51 PM
3mchildren Top glove
15/08/2020 6:51 PM
Kukuman PE 5? No way! It will be PE 1. Thank you for the enlightenment. You are genius!

Posted by abang_misai > Aug 15, 2020 6:27 PM | Report Abuse
... Those products which will soon experience oversupply will only be assigned to a PE of 5 max
15/08/2020 6:56 PM
zhen wei & JP https://ibb.co/hgmtcTy

Few glove factory has started to expand thier production output.

May expect Fierce competition September onwards.
15/08/2020 7:10 PM
zhen wei & JP Due to major expansion by glove factory lead time may be reduced.
Approx 25days after payment made. This may stabilise cost price.

zhenwei.
15/08/2020 7:42 PM
UncleHuat61 Welcome back
15/08/2020 8:14 PM
Targeted .
Lead time more than 12 months, thats how one measures demand in glove industry - lead time!
15/08/2020 8:44 PM
Targeted .
Those who understand glove industry will be happily loading up like TG bosses.............hehehehehe
15/08/2020 8:46 PM
mf MOSCOW: Russia has produced the first batch of its new vaccine for COVID-19, the Interfax news agency quoted the health ministry as saying on Saturday (Aug 15) hours after the ministry reported the start of manufacturing.
15/08/2020 8:51 PM
gemfinder When kyy said no wories, means is time to sell. Last time he oso said dayang no wories in d end wat hapen
15/08/2020 8:52 PM
pang72 You all still don't scare of so high value gloves?
15/08/2020 8:55 PM
abang_misai At the end margin call ler.....

Posted by gemfinder > Aug 15, 2020 8:52 PM | Report Abuse

When kyy said no wories, means is time to sell. Last time he oso said dayang no wories in d end wat hapen
15/08/2020 8:58 PM
abang_misai Aggressive factory expansions, emergence of new competitors, vaccine found means front liners/those deemed risky group will be vaccines first means less contagion to take place. It simply means RACE TO THE BOTTOMS. Siapa cepat angkat kaki, dia lah terselamat
15/08/2020 9:03 PM
CharlesT Many r still sitting on few hundred percent paper gain...

U dont cut win others will.

Run Forest Run
15/08/2020 9:04 PM
abang_misai If you don’t run, you simply let others to run. Time is up. It’s now the commencement of game of Racing to the Bottom.
15/08/2020 9:06 PM
CharlesT When i saw sifu suddenly revised his TP fm rm24 to rm50 n started to post in I3 then i only can think of one thing...

Run Forest Run....
15/08/2020 9:08 PM
abang_misai Run forest run. Race to the bottom. F1 to the drain.
15/08/2020 9:10 PM
rchi Run forest run.Charles you made my day.Hahaha.
16/08/2020 7:23 PM
Mabel I'm holding..

I want to do something to the world community.

I came into Gloves as early as January after Theresa Kok pledged donating 18 million gloves to China to help them fight the Coronavirus.

Along the way I have been trading these Fantastic Four. Bought few batches during last week retracement since the price was too delicious to ignore..

Bottom line, my Gloves and Health Care P&L is still looking good. In fact it's the best performing sectors from the 15 sectors I have invested.

So no issues to hold until next year. I'm doing it not because KYY said so. I'm doing it because I want to be part of this development to fight Convid 19..

Along the way, if I can make money, which I believed I will, why not?

Stay Invested..

Meow
16/08/2020 7:32 PM
zhen wei & JP Dwindled.
17/08/2020 10:31 PM
gemfinder Kyy is most woried
17/08/2020 10:33 PM


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