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Author: Tan KW   |   Latest post: Wed, 21 Apr 2021, 6:42 PM


Purchased Top Glove - felicity

Author:   |    Publish date:

Thursday, February 25, 2021


While in the past, I was critical but unsure of the company, this time around I think it is grossly oversold. The company had not paid much dividend as yet and has been repurchasing a substantial amount of its stocks over the pandemic period. The company remains to be the largest gloves manufacturer and is probably the company that benefitted the most in terms of revenue and profits due to the pandemic.

This is probably due to the aggressive nature of the management where they had increased capacities through organic and acquisition growth. The super abnormal profits have given opportunities I believe for many of the gloves manufacturers to improve on their efficiencies in the long run as they took this period to push more automation as well as improve on the living conditions of their workers especially the foreign workers.

I think given that Top Glove is trading at RM43billion valuation, it could be cheap. Post pandemic which for many countries could be seen by end of this year or mid of next year, we will potentially see restocking as these countries do not want to be shocked again by another similar situation. I think these gloves companies despite the coming on stream of other new entrants as well as much increased capacities of the existing company (including China and Thailand) may still see the plants running at full capacities.

I have hence bought 1500 units of Top Glove at RM5.19.






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Chart Stock Name Last Change Volume 
TOPGLOV 5.45 +0.05 (0.93%) 23,512,200 

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commonsensing 5.19 x 3 = RM 15.57, and you use to say this below (haha):

Even, at a price of RM10 (which is not something we can expect given it is now RM15.60, the average PE would have been 35x, given the scenario above. See below's table. That is still high.
27/02/2021 10:58 AM
gohkimhock Even RM3 also expensive. RM3 x 3 = RM9. Compare it to pre-covid price. We expecting the profit couldn't be sustained at all..
27/02/2021 11:21 AM
gohkimhock Careplus is the worst. Might even go back to making losses. If lucky, might able to squeeze it into positive territory..
27/02/2021 11:23 AM
signn its ok. sooner or later tg will only be listed in sgx n hkex...u guys can focus your nonsense on other stocks dy...lol
27/02/2021 11:24 AM
CharlesT Will TG's profit ever go back to pre covid 19 level????

Check their historical annual profit since SARS 2003 u shall hv a better ideal..
27/02/2021 11:33 AM
CharlesT Buying TG at current level is still relatively safer than mamy other stocks in Bursa now..especially tech stocks....
27/02/2021 11:37 AM
gohkimhock @CharlesT If you want to talk about 2003, to be fair and honest, then you need to take it last trading price in 2002 roughly, then calculate those corporate exercises it had starting from 2003. How many bonus issues it had gone through..

In the end, we should only see the EPS..
27/02/2021 11:40 AM
CharlesT Reminded me of the Y2K party in 2000 when MPI was ard rm80+ n Unisem was ard rm40+....

The rest is history.
27/02/2021 11:40 AM
gohkimhock Yes, the profit was growing all these 18 years, but it had also reflected in the share price too.
27/02/2021 11:44 AM
CharlesT Gohkimhock,

All glove's profit r still growing fm 2003 till today right?

So what do u meant by back to pre covid 19? U meant their profit right? Or their prices will be back to pre covid 19 level, say ard RM2+ for TG (Rm2+x3= Rm6+)??
27/02/2021 11:45 AM
CharlesT Posted by gohkimhock > Feb 27, 2021 11:44 AM | Report Abuse

Yes, the profit was growing all these 18 years, but it had also reflected in the share price too

So? price of TG will have to go back to pre Covid 19 level??????

Sometimes I dont undertand yr logic at all...

Just like u claimed u never see people wearing gloves in the streets of Msia.......lol
27/02/2021 11:47 AM
CharlesT Jan 25, 2021 5:37 PM | Report Abuse

there are only 7.8 bil human beings in this world. When was the last time you ever wear a glove?

Do U know more than 90% of the gloves are for exports?

Even so, Mat Salleh dont wear glove in their streets also...
27/02/2021 11:50 AM
CharlesT I have to confess that i am as annoyed as seeing KYY's rubbish when i see yr above comments
27/02/2021 11:51 AM
CharlesT assuming 50% of the world population are males...meaning to say ard 3.9B are males...

I assume u dont see most of their cocks too but it doesnt mean the 3.9+B cocks are not there
27/02/2021 11:53 AM
PunTatBerSiul RM 3.50 coming soon!
27/02/2021 11:56 AM
CharlesT Feb 16, 2021 10:24 PM | Report Abuse

Frankly speaking, for the last 12 months, I never see anyone wearing gloves. Not even one, beside those dishwashers..

I see TG's cash in their Balance Sheets (unless its all is as real as in Xinquan's bank ac lah)..

And I will see their div every Q also (DY 70% for 2021)...Ah Chai dont con me ah

I will tell u whether the money is real or not when I see them later
27/02/2021 12:00 PM
CharlesT As for Supermax,it seems Ah Thai prefers to buy Condo n build plants in US io paying div....so my love is with Ah Chai this round

After getting Div of Rm1+ this 2 years if price drop to pre Covid 19 level as per yr wish I also boh pian....lol
27/02/2021 12:02 PM
bpsiah How many companies in Bursa ever declared they will pay you dividends of 70%. Handful or less? For that I have to give TG the thumb's up. It shows they take care for retail investors. Talking about dividends I failed to understand why it has to work as currently where immediately after exdate the share price will drop as much as the dividends given. Why must this be so? Can't the Exchange leave the share price as at the last closing price and let the market decides whatever price after the ex-date? Dividends are bonus for investors but then dropping the share price on ex-date by the equivalent amount of the dividends means the investors are getting nothing...nil. Your thoughts on this guys.
27/02/2021 12:30 PM
PunTatBerSiul Fair value 70 sen!
27/02/2021 12:36 PM
CharlesT If prices back to SARs level 2003 i think below rm0.50...
27/02/2021 12:40 PM
VenFx Many love in here !
Bery nice...

It help me study & think in more perspectives.

Personally my love to careplus / Tg /Sman never less from now on.
27/02/2021 12:40 PM
CharlesT If prices back to IPO level maybe few cents....lol
27/02/2021 12:41 PM
ccy123 People are buying RECOVERY stocks, here still talk about Glove?
27/02/2021 12:42 PM
PunTatBerSiul RECOVERY STOCKS? What nonsense?
27/02/2021 12:46 PM
VenFx Can name few those recovery counters that proven with solid improvement n.profit in their account?

Next Q is, has the market self balancing done ?
27/02/2021 12:46 PM
Airline Bobby Lol u don't get Malaysia market. 1 year period and its out. U must have not experienced hengyuan downfall... GG
27/02/2021 4:22 PM
paperplane And topglov wont go bankruptcy duh! Its net cash 10bil soon, and still expects to keep earning near 3bil every quarters still probably until 2h this yr also.
28/02/2021 12:38 AM
paperplane Whether expensive or not expensive thats up to your own interpretation lah. Rm3 can ve expensive also for some ppl, even rm0. 01 also expensive sometimes to someppl。depends how you view things. With status now 15% div yield, pe single digits, i think it's dirt cheap
28/02/2021 12:39 AM
paperplane Before covid, price at mkt is pe50, 60, peak of covid pe 100. Now pe 8,9 yoj dont want ah. Next pandemic 2,3 yers later u will say again dirt cheap
28/02/2021 12:40 AM
paperplane Guna otak mah. And be patient mah in investment. Many ppl able to retire by just holding gloves stocks. Just like how auntie, uncle thanks pbbank, genting last time mah
28/02/2021 12:46 AM
paperplane This admin. Memang like go delete my comments. Macam communism
28/02/2021 9:22 AM
gemfinder https://klse.i3investor.com/blogs/kianweiaritcles/2021-02-28-story-h1541941602-U_S_authorizes_Johnson_Johnson_s_COVID_19_vaccine.jsp
28/02/2021 10:07 AM
OrlandoOilSemiconT Bot jz 1500 units.. not lots.. so little??
28/02/2021 10:31 AM
CharlesT I dont like to whack on this again...but really cannot stand such a silly comment fm an experienced investor in I3...

U never see anybody wearimg glove for the past 12 months except dishwashers

So all their sales r fake? All their profits their cash in balance sheet n their div r fake? Covid 19 is fake also basing on the same logic?

What happen to all the seniors I3?

Icon8888 is missing....Sifu Up_Down is missing too...

Kyy is the same old crook...
28/02/2021 10:51 AM
probability sifu charlest...i think either they made it big n taking a break or want to be back when pandemic is over...

now i think u also beat sifu philip level...but still humble, jovial, and young at heart as ever...

this year my gloves dip wiped out whatever i made from recovery stocks like dayang....since i was heavy on both:(
28/02/2021 12:18 PM
probability sifu felicity now very nimble already..i missed her dnex punt
28/02/2021 12:19 PM
OrlandoOilSemiconT But how abt shorting???

Is it over?

Where is Ben Tan?
28/02/2021 1:09 PM
signn ya ya. i support. china hk n usa got so much funds
28/02/2021 1:58 PM
gemfinder Just bought 1500 units of topglv n shout out loud.
28/02/2021 2:39 PM
LaoTzeAhSir 1,500 units... ant size. that tells a lot about your confidence.
28/02/2021 3:27 PM
probability 1500 lots of 1000 shares may be..dont play play with felicity
28/02/2021 3:29 PM
Flying Fox You can assume it’s a joke or illusion, I go for JOKE this time. Thanks for the Joke, @probability.

probability 1500 lots of 1000 shares may be..dont play play with felicity
28/02/2021 3:29 PM
28/02/2021 3:40 PM
pjseow To predict the future , it is best to look at the past records. In the last 20 years,we have.seen 3 pandemics. The first is SARS in 2003 followed by H1N1in 2009 and then covid 19 in 2020. The.SARS was relatively smaller pandemics which killed a few.hundred peoples in a few countries . We saw topglove earnings doubled in 2004 and continued to grow organically until 2009 when the bigger H1N1 pandemic started in 2009. The earning double again within.a year in 2010 . The earnings tapered off for a while before it grow again organically until 2020 when covid 19 sparked a huge and unprecedented growth of more than 10x earnings by the end of the year. This pandemic.is 10 to 20x bigger than the previous 2 . The profits will continue to grow in 2021 and most likely in 2022. If history were to repeat , then.in 2023 or 2024, profits will tapered off.and then continue to grow organically. It is silly and illogical to think that the earnings will go back to pre pandemic levels. If you want to have a better FEEL , please look at the qtrly earnings in details for topglove in the last 20 years, then you can better appreciate what I am talking. Facts never lie.
28/02/2021 4:09 PM
gemfinder It states 1500 units. 1500 shares?
28/02/2021 4:12 PM
probability Felicity buying is same like TAN SRI RAINER ALTHOFF buy ma...


its a goodwill gesture to i3 members
28/02/2021 5:14 PM
Flying Fox (28/2) 八点最热报: 手套股的黄金岁月已不再,手套价格割喉战即将爆发!
01/03/2021 10:26 AM
Flying Fox Fact: price war is coming
01/03/2021 10:27 AM

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