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Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Thu, 22 Oct 2020, 6:08 PM

 

Why you should not sell glove stocks? Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Thu, 22 Oct 2020, 6:08 PM


All the glove stocks have been dropping in the last 2 or 3 days. The reasons for selling can be as follows:

1 Generally investors do not like political uncertainty, they prefer to sell. A few days ago, Anwar met the King to declare that he has enough MPs to support him to be the next PM. Why Anwar is still not appointed yet? 

2 Investors are happy to take profit since all the glove stocks have shot up a few hundred percent in the last 6 months. 

3 Many investors have herd instinct and follow blindly like sheep to sell glove stocks in the last 2 or 3 days.  

All investment decision must be based on   fundamentals and price charts.

Fundamentals

Covid 19 pandemic have been affecting everyone and all listed companies except glove stocks and medical products for the virus prevention. As a result, the demand for gloves far exceeds supply and all the glove makers are taking advantage of the situation to increase their selling prices to make more and more profit which are being reflected on their stock prices.

Among all the stock selection criteria such as NTA, cash flow, debt or health accounts etc, profit growth prospect is the most powerful catalyst to push up share prices.

Currently all the glove stocks have unprecedented profit growth prospect. Supermax has the best profit growth rate as shown in its latest quarterly report. Based on its ability to increase its selling price, its profit for next quarter will be the best in the history of the company. The company will make the announcement soon.

 

Price Chart

The above one month price charts for the 2 leading glove stocks, namely Supermax and Top Glove are still showing up trend. They are not on down trend.

Conclusion: if you sell glove stocks what better stocks can you buy? Only glove stocks will continue to have good profit growth prospect. As I said earlier, Covid 19 pandemic is affecting all listed companies except glove stocks.

Based on good fundamentals and good profit growth prospect, you should not sell your glove stocks.    

 

Labels: SUPERMX, TOPGLOV

Should you sell glove stocks? Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Thu, 22 Oct 2020, 10:49 AM


Many investors asked if they should sell their glove stocks because all the glove stocks plunged yesterday.

Hartalega dropped Rm 1.20,

Supermax dropped 86 sen,

Kossan dropped 81 sen,

Top Glove dropped 60 sen,

Comfort dropped 41 sen,

CarePlus dropped 24 sen,

Rubberex dropped 20 sen.  

Instead of asking me should you sell glove stocks, you should ask “Is the Covid 19 pandemic completely over?”

Coronavirus pandemic has caused unprecedented loss of lives, and crippled healthcare systems across the globe. The United States, India, and Brazil currently account for half of the 40 million+ cases of COVID-19.

With no vaccine and an a totally effective cure in sight, scientists around the world are scrambling to find relief in a bid to slow down the infection rates. The best ways are as follows:

1 You must wear a face mask whenever you are out of your house. 

2 Practice social distancing; do not stand nearer than 2 meters from another person.

3 Avoid going out. If you have to go out, when you return home immediately you must wash your hands with soap and water.

4 Get yourself tested as soon as you feel feverous and uncomfortable.

5 Never forget life is more important than money. 

6 All medical workers must wear gloves to do any examination or do contact tracing. 

7 All the people whose work involved in touching things and people should wear gloves to save lives.

 

Currently there are 41.42 million Covid 19 cases and 1.14 million deaths in the world. Every day there are about 400,000 new cases and the rate of infection is still rising.   

Under the circumstances, the demand for gloves will continue to exceed supply and all the glove makers can easily increase their selling prices to make more and more profit which should reflected in their share prices.

If you sell your glove stocks, what are you going to do with your sale proceeds? The pandemic is affecting all the listed companies except gloves and medical products for the virus prevention. 

 

Must wear gloves to contact tracing and to inject vaccine - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Wed, 21 Oct 2020, 5:08 PM


Coronavirus test - Medical worker taking a throat swab for coronavirus sample from a potentially infected woman with the isolation gown or protective suits and surgical face masks

Contact tracing is an effective public health measure for the control of COVID-19. The prompt identification and management of the contacts of COVID-19 cases makes it possible to rapidly identify secondary cases that may arise after transmission from the primary cases. This will enable the interruption of further onward transmission. Contact tracing, in conjunction with robust testing and surveillance systems, is central to control strategies during de-escalation. Contact tracing has been a key part of the response in several

Asian countries that have successfully reduced case numbers.

The world still lacks a proven coronavirus vaccine, but that has not stopped Chinese officials from trying to inoculate tens of thousands, if not hundreds of thousands, of people outside the traditional testing process.

China’s rush has bewildered global experts. No other country has injected people with unproven vaccines outside the usual drug trial process to such a huge scale. However, to stop the spread of the virus, at least 70% of the world populations are required to be vaccinated. It will take a long time to produce so much of vaccine to vaccinate so many people.

To vaccinate so many people, more medical staff will be required and more gloves will be used.

 

In fact, more glove will be required to contact tracing and to vaccinate so many people. The selling price for gloves will continue to go up higher and higher. 

 

Covid 19 cases in US

 

 

Currently US has 8.52 million Covid 19 cases and 226,149 deaths. The chart shows the daily increase is more than 60,000. US has the most cases in the world.

US President Trump is desperately pushing for the approval of the Covid 19 vaccine.

US is our largest market for our gloves. Investors should just buy glove stocks and wait patiently. They should not worry about the frequent price fluctuation because the demand for gloves will continue to exceeds supply. All the glove makers can easily increase their selling prices to make more profit and more profit which will be reflected on the share prices sooner or later.

 

Supermax has the best profit growth rate among all the glove stocks as reported in the previous quarter. Soon the company will announce its historical best profit and establish a new peak price.

 

 

Labels: SUPERMX

Greatec: do not buy it - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Tue, 20 Oct 2020, 7:11 PM


A few days ago, someone in my chat group asked me to comment on this stock because he was interested to buy it. I am shocked to see that it has been shooting up higher and higher every day. It was selling at Rm 1.38 on 19 March and it closed Rm 8.08 today, an increase of Rm 6.70 or 486% in the last 6 months.

I am so shocked to know that it is so much overvalued. 

The above table shows that its latest 4 quarter EPS were 2.82 sen, 2.95, 2.56 and 2.06 sen. The total EPS for the last 4 quarters was 10.39 sen and the share price is Rm 8.08. Moreover, the earnings for the last 4 quarters were flat and these figures do not show that the company has profit growth prospect which is the most powerful catalyst to push up share price.

Although the company proposed to give 1 bonus share to every 1 share held by shareholders, these additional shares do not help the company to make more profit.

Investors should not buy it until the company can report increasing profit for 2 consecutive quarters.    

No wonder why the statistics show that 90% of the investors are losing money in the stock market. That is why there are so many stupid investors chasing to buy it at Rm 8.08 per share.

 

Labels: GREATEC

Mah Sing: buyers be forewarned - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Tue, 20 Oct 2020, 2:41 PM


On 15 Oct 2020, Mah Sing proposed to diversify its business to include manufacturing and trading of gloves and related healthcare products. As soon as this hot news was known publicly, many investors rushed to buy Mah Sing shares. As a result, its share price shot up from 72.5 sen to 94.5 sen, an increase of 22 sen or 30.4% limit up. It continues to shoot up higher and higher. 

The table below shows that the company has been reporting reduced profit in the last 6 quarters. In fact, it reported loss in the latest quarter.

 

As a co-founder of Rubberex, I should know the difficulty and time required to construct a new factory to manufacture gloves. With more than 30 years of experience, Rubberex took more than 2 years to complete the construction of the new factory and a few months to test run.

Investors should not buy it because it will take more than 3 years to start producing gloves and another one year to show profit, assuming its profit from the sale of gloves can cover the losses from its property business. Just open your eyes you can see there are so many unsold properties in every town and cities in Malaysia. I will take many more years to resolve the problem.

The Covid 19 pandemic is affecting everyone’s movement and income. That is why so many people cannot afford to buy a new house or condo. 

In Ipoh I know there are already a few property developers being foreclosed by the banks.  

Statistics shows that more than 90 percent of the investors lose money in the stock market. That is why there are so many stupid investors rushing to buy Mah Sing shares.  

 

Labels: MAHSING

Covid 19 cases in Malaysia - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Mon, 19 Oct 2020, 9:09 AM


Before you read the details of the Covid 19 cases in Malaysia, I wish to state here the proven method to prevent the contact and spread of the coronavirus.

1 You must wear a face mask whenever you are out of your house. 

2 Practice social distancing; do not stand nearer than 2 meters from another person.

3 Avoid going out. If you have to go out, when you return home immediately you must wash your hands with soap and water.

4 Get yourself tested as soon as you feel feverous and uncomfortable.

5 Never forget life is more important than money.  

 

 

PUTRAJAYA (Oct 18): Covid-19 cases in Malaysia hit fresh highs for the second day in a row, as it rose to 871 cases in the past 24 hours — barely beating yesterday's record of 869 new infections.

Today's number of new cases is the highest since the pandemic first struck Malaysia in January.

Health director-general Tan Sri Dr Noor Hisham Abdullah said cumulative cases have crossed the 20,000-mark to 20,498.

However, on a happier note, he said that 701 patients have recovered from the disease and were discharged — the highest ever number of daily recoveries in the past 24 hours.

There were seven Covid-19 related deaths today, which brings Malaysia’s death toll to 187 cases, he said.

The number of Covid-19 patients undergoing treatment also crossed the 7,000 mark for the first time to 7,049 patients today.

So far, 86 Covid-19 patients are undergoing treatment in intensive care units (ICU), with 28 of them needing a ventilator to breathe.

Out of the 871 cases today, 702 were recorded in Sabah, the worst-hit state at present, followed by Selangor with 72 cases and Penang with 45 cases.

Noor Hisham attributed the jump in cases to the huge number of samples from Sabah that was sent to the Institute for Medical Research. “Since the beginning of the Covid-19 pandemic in Malaysia, the government has conducted Covid-19 detection tests on 251,030 individuals in Sabah. This follows active case-tracing carried out by public health authorities as a measure to control the spread of the disease in Sabah,” he said, noting that the positivity rate in the state stood at 2.96%.

Sabah has recorded 7,439 cumulative cases to date, which accounts for 36.3% of cumulative cases in Malaysia.

Noor Hisham also revealed four new clusters today.

The Alma cluster, which involves the Seberang Perai Selatan and Seberang Perai Tengah districts in Penang, has caused seven cases of Covid-19.

So far, 183 people have been tested, with 43 tested negative and a further 133 awaiting their results.

Meanwhile, the Auto Cluster which encompasses the districts of Petaling, Kuala Langat and Klang in Selangor and Seremban in Negeri Sembilan, has caused nine cases.

The Bah Layangan cluster in Labuan, Sabah and Rembau, Negeri Sembilan has caused 13 cases of Covid-19. So far, 142 individuals have been screened, with 67 testing negative and 62 pending results.

Meanwhile, the Kepayan prison cluster emerged in Kota Kinabalu, Sabah. Out of 170 people who were tested, 49 were positive for Covid-19, while 121 tested negative for the coronavirus.

Malaysia could hit 5,000 daily cases by month’s end if no action was taken — MoH

 

 


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