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gloveharicut

Author: gloveharicut   |   Latest post: Thu, 24 Sep 2020, 5:07 PM

 

EPF stake buoys Top Glove's rise as Covid-19 cases climb

Author: gloveharicut   |  Publish date: Thu, 24 Sep 2020, 5:07 PM


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https://klse.i3investor.com/insider/substantialShareholderNoticeOfInterest/7113/23-Sep-2020/13744_3543786224.jsp



 

https://www.theedgemarkets.com/article/epf-stake-buoys-top-gloves-rise-covid19-cases-climb

EPF stake buoys Top Glove's rise as Covid-19 cases climb

 

KUALA LUMPUR (Sept 24): Top Glove Corp Bhd's share price pared gains after rising as much as 58 sen or 7.23% to RM8.60 in Bursa Malaysia's afternoon trading today against a confluence of factors including the rising number of global Covid-19 cases and after the company brought forward its dividend ex and payment dates.

Investors could have also taken cue from Top Glove's announcement that the Employees Provident Fund (EPF) had emerged as a substantial shareholder of the world's largest glove maker by output volume.

At 3.29pm, Top Glove's share price pared gains at RM8.58 with some 73 million shares traded. At RM8.60, Top Glove has a market value of about RM68.71 billion.

Earlier today, Top Glove said in its notice of book closure involving its final dividend of 8.5 sen a share that its securities would be traded and quoted ex-dividend on Oct 19, 2020 instead of the previously annnounced ex-date on Nov 17, 2020.

Top Glove said in the book closure notice, which was filed with Bursa today, that Top Glove had also decided to bring forward the final dividend's entitlement and payment dates.

According to Top Glove, it has brought forward the entitlement date from Nov 18, 2020 to Oct 20, 2020 while the payment date has been brought forward from Dec 1, 2020 to Nov 3, 2020.

"In line with the board's decision to make a quarterly dividend payment for FY21 (financial year 2021 ending Aug 31, 2021) and for better cash flow planning purpose, the board has decided to bring forward the final dividend entitlement and payment dates, i.e. from Nov 18, 2020 to Oct 20, 2020 (entitlement date) and from Dec 1, 2020 to Nov 3, 2020 (payment date) respectively."

Labels: TOPGLOV
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Top Glove spent RM328.5 mil so far this month for share buybacks

Author: gloveharicut   |  Publish date: Wed, 23 Sep 2020, 12:04 AM


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I am reproducing the The Edge article to my blog.

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https://www.theedgemarkets.com/article/top-glove-spent-rm3285-mil-so-far-month-share-buyback

Top Glove spent RM328.5 mil so far this month for share buybacks

 

Top Glove spent RM328.5 mil so far this month for share buyback

KUALA LUMPUR (Sept 22): Top Glove Corp Bhd, whose cash pile ballooned to RM1.21 billion, continued its share buyback this week.

The world’s biggest rubber glove producer has spent RM118.61 million to buy back a total of 14.85 million shares so far this week.

The group seems to be spending big money on share buyback after its share price had been capped in recent weeks. Since the start of the month, the group has acquired a total of 44.59 million shares for RM328.51 million on five trading days (see table).

The latest bourse filing shows that Top Glove bought back some 2.36 million shares today for RM18.85 million.

Meanwhile, in a separate filing, the company announced its executive director Lim Cheong Guan has been trimming his stake in the company, disposing of a total of 380,000 shares since Sept 17.

He sold 300,000 shares last Thursday at RM8.05 per share, 50,000 shares the following day at RM8.06 per share and 30,000 shares today at RM8.09 per share.

Following the disposal of shares, Lim directly holds 557,800 shares, equivalent to a 0.007% stake in Top Glove.

Top Glove’s share price has retreated from its record high of RM9.47 on Aug 6 to close at RM8.03 today. Still, the stock has gained 412% year to date, making it the second largest stock with a market capitalisation of RM65.31 billion.

 

Labels: TOPGLOV
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Aero1 Can Top Glove sell these shares in HKEX? If can sell at RM10, that is a hefty 25% gain in just short span of time.
23/09/2020 8:18 AM

Investor lodge complaint with SC against Macquarie downgrade on TOP GLOVE

Author: gloveharicut   |  Publish date: Wed, 23 Sep 2020, 12:04 AM


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I am reproducing the The Edge article to my blog.

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the downgrade has not gone down well with the investing community. Some even wrote to the Securities Commission Malaysia (SC) to complain that the securities firm had drastically changed its view on the stock, from a “buy” to a “sell” call, in a span of just two weeks.

According to a letter sighted by The Edge , an investor has lodged a complaint with the SC against the securities firm over the downgrade. The investor asked whether there was any conflict of interest considering the securities firm had also issued call warrants on Top Glove.

The SC and the securities firm did not immediately respond to questions from The Edge.

 

https://www.theedgemarkets.com/article/when-glove-party-ends-not-just-shareholders-get-burnt

When glove party ends, not just shareholders get burnt

 
This article first appeared in The Edge Malaysia Weekly, on September 14, 2020 - September 20, 2020.

AS the overbought glove sector extended its sell-off from last month, investors — particularly those sitting on profit — joined the selling, which further fuelled the decline.

From their peak in early August, the share prices of the big four glove makers have fallen sharply despite last Friday’s rebound. Top Glove Corp Bhd has retreated 18% from an all-time high of RM9.38, Supermax Corp Bhd is down nearly 37% from its peak, Hartalega Holdings Bhd has fallen 39.02% and Kossan Rubber Industries Bhd has declined 44.32%.

The steep correction hurt not only those who bought the shares but also the holders of structured call warrants, who were biting their nails as the counters plummeted.

Over the past four months, investment analysts had been raising the target prices of glove stocks on premium valuations amid bullish views of their earnings prospects. Consequently, the glove mania gathered steam, with bulls enjoying the rally. Many retail investors sought a cheaper proxy to the rally by putting money into structured warrants.

Now, the euphoria has turned into dissent as investment analysts started downgrading the sector on the grounds that most good news had been factored into the share prices. Last week, one foreign securities firm downgraded Top Glove to “sell” and slashed its target price by nearly half.

It is understood that the downgrade came after another analyst took over coverage of the stock. The securities firm recommended that clients take advantage of the current lofty valuation to lock in a handsome profit.

In fact, the analyst raised the earnings forecast, but reduced the valuation multiple when valuing Top Glove, noting that the group’s earnings would peak in the second half of 2021.

However, the downgrade has not gone down well with the investing community. Some even wrote to the Securities Commission Malaysia (SC) to complain that the securities firm had drastically changed its view on the stock, from a “buy” to a “sell” call, in a span of just two weeks.

According to a letter sighted by The Edge , an investor has lodged a complaint with the SC against the securities firm over the downgrade. The investor asked whether there was any conflict of interest considering the securities firm had also issued call warrants on Top Glove.

The SC and the securities firm did not immediately respond to questions from The Edge.

Structured warrants: the holder and the issuer

Structured warrants are issued by investment banks. And they are cash-settled.

Unlike the holders of companies’ call warrants, the holders of structured warrants will not exercise the derivatives to buy or sell the shares. Any gain or loss on the expiry date will be settled in cash. For structured call warrants, holders make a profit when the underlying share price soars above the exercise price on the expiry date.

Among the glove companies, there are more than 15 such derivatives linked to each of them. For example, Macquarie Bank, CIMB Investment Bank, Kenanga Investment Bank and Maybank Investment Bank have issued a total of 25 call warrants and three put warrants on Top Glove.

One of these is TOPGLOV-C67, a structured call warrant issued by Macquarie in February. The derivative will expire on Oct 16 with an exercise price of RM1.67 and an exercise ratio of 1.33 times. The structured warrant closed at RM4.20 last Friday.

Top Glove ended the week at RM7.76, so the warrant holder is still in the money. Of course, this does not include the brokerage fee, clearing fee and stamp duty.

The warrants with the earliest expiry dates are Macquarie’s TOPGLOV-C67 and CIMB’s TOPGLOV-C66, which has a strike price of RM1.50, an exercise ratio of 1.7 times, and which expires on Oct 30.

As for the investment banks, if the call warrants are in the money, then they will bear the difference between the strike price and the underlying stock price via a cash settlement. When share prices fall following a downgrade of the underlying stock, questions are often raised about the ultimate purpose of the revision of the recommendations, considering that when the share price falls below the exercise price, it will favour the issuers of the warrants.

The flipside is, will it take just one downgrade to swing the price of a big-cap stock? Hypothetically, if the downgrade had happened in July when glove stocks were marching to new peaks, would Top Glove’s share price have tanked?

The excitement is still alive

Top Glove rebounded last Friday, with its share price rising RM1.31 or 20.3% to RM7.76, its highest single-day jump on record. Trading volume soared to a two-year high of 226.35 million shares — the highest level since July 16.

Top Glove, which has a consensus forward price-earnings ratio of 43.35 times, currently has 16 “buy” calls, with the highest target price being RM15.45, according to a Sept 3 report by Affin Hwang Research. It also has five “hold” calls and one “underperform”, according to Bloomberg.

Macquarie has the lowest target price of RM5.40. The average target price currently stands at RM8.83, Bloomberg data shows.

A stock price is gauged by the multiple of its earnings per share, or essentially how long it will take a company to deliver its earnings at the prevailing share price.

Fundamentally, analysts are still positive that glove makers will crush their record earnings in 2Q2020 in the quarters ahead. But if the downgrade is questioned, observers will ask whether the same thing can be said about upgrades in the past.

 

Labels: TOPGLOV
  vinc3362 likes this.
 
greedy44444 Don't worry SC will compensate for your losses
23/09/2020 12:54 AM
goldenluck16 GENERAL REMINDER TO CALL WARRANT BUYERS.

AVOID TopGlove C79,C82, C83, C85, C86, C87, C88, C89,C90, C91, C92, C93 and C94. All are controlled by the IBs or syndicates and very much overvalued and also avoid all Put warrants HA, HB and HC. Just don't buy them now.

For Supermax call warrants, don't buy their call warrants starting from
C77-C95 and C97-C99.
Avoid all the
C1A TO C1K....ALL ARE HIGHLY OVERVALUED. Don't be trapped by the IBs.
23/09/2020 8:55 AM
sensonic YA, LOTS OF SHARKS
23/09/2020 9:47 PM
henry888 Actually call warrant should not be sold in the share market as it is on cash settlement basis either you loss or you win is akin to a gamble. Instead, warrant is more flexible as you can either sell it or change it to mother share.
24/09/2020 8:04 AM
Junichiro Like it or not, warrants are here to stay. All international markets have warrants as products. The SC has ruled in the past that the issuer of warrants has the right to trade the mother shares.

It is no brainer that the issuer will sell down the mother share to make its warrants 'out-of-the-money' before expiry.

But, what if the mother share goes up n the warrants are still 'in the money' ? Doesn't this issue should be brought up as well ? Why is the issuer acting like santa claus giving out money ? Who are the beneficiaries ?

I myself have sold some 'not so hot' shares only to find that the shares went up on the day its warrants expiry. I suspect it might be a payout to some well connected persons.

The SC should rule that issuer of warrants should not issue investment reports on the mother shares lest there be a conflict of interest.
24/09/2020 10:04 AM

Credit Suise maintain BUY on TOPGLOVE. Target price = RM16.20

Author: gloveharicut   |  Publish date: Wed, 23 Sep 2020, 12:03 AM


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Labels: TOPGLOV
  supersaiyan3 likes this.
 
greedy44444 Only naive small fish believe this type of report
23/09/2020 12:58 AM
supersaiyan3 Finally someone did their homework properly. Well done, CS.
23/09/2020 6:11 AM

TOP GLOVE is buying back own share. Why Director dispose share? LIM CHEONG GUAN should hold the share for a year.

Author: gloveharicut   |  Publish date: Tue, 22 Sep 2020, 7:52 PM


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Why TOPGLOVE Director dispose share?

I advise LIM CHEONG GUAN should hold the share for a year.

Why join the banker by selling down TOP GLOVE?

Are you casting a vote of no confidence?

 

 

 

https://klse.i3investor.com/insider/company/shareBuyback/7113/22-Sep-2020/69544_2684905214.jsp


 

https://klse.i3investor.com/insider/director/7113/22-Sep-2020/152033_2421155162.jsp

Labels: TOPGLOV
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iswara why director can't dispose share ?
22/09/2020 8:20 PM
witan Haiyo director sell so little of his own shares also cannot meh? Maybe he wants to buy car while still got sst discount leh? Such a small news also bising alamak
22/09/2020 8:23 PM
BeSmartKH Pay investment loan bank
22/09/2020 8:55 PM
gloveharicut I feel not right when company buyback and director dispose.
22/09/2020 9:02 PM
BursaBiggestBoss Disposed a very little bit only why can't??? He just cashed out about rm250000 to buy a new BMW so what's wrong? Stupid glovehaircut asking stupid question!!!
22/09/2020 9:06 PM
Hungerr Nothing wrong actually.he also in the learning process of investment.why you can buy and sell but he cant?hahaha.for me this is what u call protect capital profit.sell half then the rest keep
22/09/2020 9:28 PM
Vc Looi Cash out some bullet to fight with IB is ok
22/09/2020 10:15 PM
gloveharicut LIM CHEONG GUAN should keep for 1 more year. at least 1 more year. He should follow his boss Tan Sri Lim to buy more TOP GLOVE.
22/09/2020 11:55 PM
greedy44444 Stupid suggestion...who are you anyway ? Dispose share also needs your approval ? Everyday so many smart investors sold off millions of Topglov and Supermx shares.
23/09/2020 12:57 AM
PureBULL ... For TOPGLOV to go to Fortune 500 plc, it needs a talented n highly knowledgeable CFO like those from wall.street.
this smallish cfo is a total accountant not hard-earned qualified cfo, always sell TG in every early growing cycles of TOPGLOV.
what better stocks can he buys. maybe he loves playing with pennies or those cheap down trend.

So many in i3 here, can do a great VALUE creation job for TOPGLOV than him.
23/09/2020 8:54 AM
speakup Tan Sri Lim must issue warning letter to this director
23/09/2020 9:13 AM
Primeinvestor cheong guan sold on rm15 too, he has esos to subscribe ma
23/09/2020 9:28 AM
gloveharicut I don't bother reply comment with "stupid" word. I am here to make more money.

LIM CHEONG GUAN, please be smart and hold for 1 more year. Next year the same share can buy you another BMW.

Is LIM CHEONG GUAN cashing out from mother to buy call warrant?
23/09/2020 3:41 PM
gloveharicut PureBULL , he can retire with good money if he hold the share until ASP come down.

Don't follow banker to sell down the share.


PureBULL ... For TOPGLOV to go to Fortune 500 plc, it needs a talented n highly knowledgeable CFO like those from wall.street.
this smallish cfo is a total accountant not hard-earned qualified cfo, always sell TG in every early growing cycles of TOPGLOV.
what better stocks can he buys. maybe he loves playing with pennies or those cheap down trend.

So many in i3 here, can do a great VALUE creation job for TOPGLOV than him.
23/09/2020 8:54 AM
23/09/2020 3:42 PM
gloveharicut Is LIM CHEONG GUAN the son or family of Tan Sri Lim?
23/09/2020 3:44 PM
gloveharicut He should have faith with his father or uncle.
23/09/2020 3:44 PM
soojinhou Need money to buy Ferrari.
23/09/2020 3:48 PM

CITI Research maintain BUY on TOPGLOVE. Best is still yet to come. Target price = RM16.00

Author: gloveharicut   |  Publish date: Mon, 21 Sep 2020, 10:22 PM


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Compile here for my own record.

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Labels: TOPGLOV
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greedy44444 Useless report
21/09/2020 10:41 PM


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