Highlights

What are investors talking about right now?

Author: sumochichi   |   Latest post: Wed, 24 Feb 2021, 2:55 PM

 

Glove vs. Non-glove counters (what investors are thinking?)

Author:   |    Publish date:


 

It is very obvious that there are two groups of investors at the moment.

 

The first group wants to be out of gloves because vaccine has arrived meaning no need of gloves anymore.

 

The second group wants to remain in gloves because orders for gloves are still full until next year, so why quit?

 

So what is the story here?

 

In the beginning, when we were first hit with covid,healthcare was the thing all investors think of because of demand. But in healthcare, we have many types that ranges from masks, hospitals, gloves and etc. Yet somehow, gloves was the most popular choice among all investors. it became a herd mentality. Why?


Easy. Because among the many other healthcare products. Glove made the most profit. That is not all. It was in overwheming demand. Orders that could not be kept up. 


Because of Profit and Demand, all investors shared the same herd mentality. Due to that mindset, it allows many glove counters to be pushed to a new high last year.

 

So what is happening now?

 

Looking at the current stock prices for the gloves, it is very obvious that the first group decides to go to other sectors due to the vaccines and short-selling news. The three sectors that are very hot right now are Cryptocurrency, Semiconductor & Technology

 

Why cryptocurrency, semiconductor & technology?

 

Semiconductor because Greatech being pushed from 0.88 (last year) to 6.24 (now). So some expects other similar counters to reach the same height.

 

Techonology because of Joe biden winning the election. So some expects renewable energy counters to go up in price.

 

Cryptocurrency because of the rise of bitcoin and Elon musk (dogecoin). Cause of trend so it has to go up.

 

Glove? Orders to last till next year so people also expect the share price to go up due to scarcity of raw materials as well and treat it like gold and other minerals.

 

I can safely say the two winning sectors will be semiconductors and gloves.

 

Gloves are needed because governments around the world will definitely try to stock up as much as gloves as possible in the event of next pandemic. Trying to establish own glove factory in the first world countries are too costly. Since glove doesnt expire, it is wiser to stock it up as much as possible. Plus the cost to buy in Malaysia is cheap so its a win as long as other countries are willing to stock up as much and as early as possible.

 

Semiconductors are in the same boat. Costs are cheaper here therefore many foreign countries loves to deal with Malaysia semiconductor sectors. 

 

It is unwise to say that semiconductor is more superior than gloves in the long run. At the end of the day, any companies that are able to buy new machineries to increase efficiency and reduce cost such as workers will emerge victorious. 

 

In the end, both sectors must satisfy clients demands: high volume of quantity and low price.

 

At the moment, investors do think that it is a good idea to buy more glove counters. Reason being is because there are many news about new diseases being spread in other countries such as H5N8. It is not good to take it as non serious threat. Remember that we took covid19 non seriously before as well.

 

A lesson to learn from our past mistakes. Every government in the world agrees that gloves are a necessity. If they wish to do another lockdown in the future pandemic, they must be well stock up before they can do that. 

 

 

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  LimitUp likes this.
 
arv18 The bottom line is that glove counters moved up too fast too soon last year. Supermax, for example went from 1.50 to 24.44. Most experienced market players understood that it was time to take profits and move on (multi, multi bagger). Those that waited too long, were left holding the bag. On top of that, OIL (energy), prices have more than doubled. It won't be long before Gas Malaysia increases gas prices to the glove players, leading to further margin erosion.

Glove play is over. Its time to look elsewhere for profits.
23/02/2021 7:04 AM
dusti If you get your vaccine jab how would you feel if the part time nurse is not wearing gloves? Today I bought kueh from a lady wearing gloves and i am so happy she cares for hygiene. WAKE UP GLOVES ARE HERE TO STAY; YOUR LIFE MAY DEPEND ON IT!!!!
23/02/2021 3:51 PM
pjseow In my opinion,glove counters are better bet at this moment. Both the glove and semicon counters had seen their prices gone up from 2x to 10x in the last one year. The glove stocks are backed by REAL profits increase from last 3 qtrs plus good visibility of better profits in the next few qtrs. Hence , their PE are already at single.digits. In contrast, semicons are not backed by proven record profits. Their PE ranged from 50 to more than 100. Although both sectors expect the.demand will exceed the supplies for the next 3 years, the glove counters are cash rich with better proven past records on growth , profit stability than semicon sectors.
23/02/2021 4:43 PM
PunTatBerSiul pjseow is a glove hugger!
23/02/2021 5:12 PM
CuriousGuy I think there is much more than meets the eye behind the scenes ...we may not know lo...

even the so called sifus or naysayers....haha

they will be the last to know
23/02/2021 5:15 PM
pjseow In stock investment,staying objective with good conviction and preseverance are important .If you exclude Supermx the price of which grew 7x with today pricing, the other 3 glove stocks only grow between 2 to 3 x although their earnings grew between 5 to 20x. Many research houses and glove manufacturing bodies predicted the demand will continue to exceed supply for the next 3 to 4 years. Ask yourself this question, with glove and other PPEs.made compulsory as part of medical requirements throughout the world ,can the medical personnel stop using gloves once the 70 % of world population.are vaccinated? Wearing gloves are a Mandatory requirement. Once the rule is fixed and implemented,there is no turning back. It is unlike semicon or consumer electronics , you can decide not to buy if the leadtime is 6 months to a year ,then.demand will drop.I have seen dot com burst but I have never seen glove com burst in the last 20 years.
23/02/2021 9:15 PM
arv18 Sure, I concede that the glove companies are great investments, BUT (caveat) being that they are purchased at the RIGHT price.

I will wait AFTER Covid before entering again.

Why be greedy? Already made last year. I've moved on.

Why "fall in love" and have capital stuck for YEARS?

Too experienced for that nonsense. Feel free to get stuck. By all means, go right on ahead!
23/02/2021 9:23 PM
Supermax2020 Noob discussion, just follow epf la.. epf still buying gloves
23/02/2021 9:45 PM
RockerArm Tik Tok! Tik Tok! Call Warrants r expire in 2 more days, will be zero value worst than toilet paper.
24/02/2021 9:21 AM
Pinky Had the glove companies like Supermax and Topglvoe not do share splits/bonus issue, I wonder will the glove promoters still chase the stocks, looking at the chart...
24/02/2021 9:35 AM
Pinky You people have been blinded by the charts. Just look at the chart, adjusted for bonus/split...
24/02/2021 9:37 AM
dumbdumb123 Tech companies in Malaysia are subsidiary players. They supply parts and components to the Big Boys. At their mercies and fancies. Glove companies are the Big Boys in the world. Yes , competition coming, but still some time yet. And Malaysia has some competitive advantage. Go figure. Yes, at the right price.
24/02/2021 10:59 AM
ahbah Those who OVER stayed in glove stocks got kena teruk ?

How can we know not to also OVER stay in tech stocks like the glove stocks ?
24/02/2021 5:40 PM
ahbah RockerArm ... a CW expert here ?
24/02/2021 5:41 PM
ahbah Which CWs will be ziro value worst than toilet paper ?
24/02/2021 5:43 PM


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