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Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Wed, 13 Jan 2021, 10:14 PM

 

Supermax will report a new record profit - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Wed, 13 Jan 2021, 10:14 PM


I have written more than 10 buy recommendations for Supermax. Despite my frequent buy recommendations, its share price has been dropping from Rm 11.89 on 6 August 2020 to close at Rm 7.11 today. It has dropped Rm 4.78 or 40% as shown on the chart below. It shows Supermax is on a down trend due largely to short sellers and JP Morgan’s downgraded all glove stocks. Fortunately, JP Morgan did not mention Supermax.   

 

Due to Covid 19 pandemic the demand for glove far exceeds supply and all the glove makers can easily increase their selling prices to make more and more profit.

Currently US has the most Covid 19 cases in the world. It has a total of 23.37 million cases and 389,621 deaths. These 2 figures are still surging as shown on the charts below.

 

 

USA is the biggest market for our Malaysian gloves and Supermax has its own sale outlets in most major cities in America.

Supermax reported its 1st quarter ending Sept EPS 30.58 sen. Its previous EPS was only 15.18 sen. It made 100% more profit than its previous quarter.  Supermax’s 2nd quarter should be another record profit which will be announced in the next few days.

If I assumed it cannot increase its selling price for its gloves for the whole financial year. To be very safe, if I assumed it cannot increase its selling price for the whole financial year, its annual profit will be 4 X 30.58 sen = Rm 1.22. Based on PE 10, it should deserve Rm 12.20 per share.   

Among all the share selection criteria such as NTA, cash flow, dividend yield, debts etc, the most powerful catalyst to push the price up higher is profit growth prospect. Supermax has the best profit growth rate among all the glove stocks.

The truth will set me free. I believe eventually the fundamental analysis for share selection will prevail.    

 

Labels: SUPERMX
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gohkimhock *yawn*
13/01/2021 10:30 PM
gemfinder No use. Everyday same story. U x boring i pun bosan
13/01/2021 11:08 PM
freddiehero whwhat happen to superman..
13/01/2021 11:09 PM
patrico8 Despite 10 buy calls, price still drop. If I had followed blindly, would have lost everything including my underwear.
13/01/2021 11:56 PM
Dartmaster After this article tomorrow drop 30 cents ! JP morgan is watching
13/01/2021 11:57 PM
i3gambler KYY, I agree that the EPS will increase further for the next one or two quarters. However, the EPS will soon drop drastically when more supply from existing and new glove manufacturers. How soon I don't know but I believe it is quite soon. It is better to use discounted model to estimate the fair value for SUPERMX.
14/01/2021 4:31 AM
CharlesT The problem is everybody knew their asp n profit will drop significantly in 2022 n 2023

And also the number of shareholders in Supermax has increased drastically by more than 300% in one year's time. A lot of latecomers only started to buy for the "free" bonus issues n most of them are suffering paper loss now and praying for vaccine to be failed n more n more cases of covid 19 so glove co price will rebound n they can have a chance to make some money

While fund manager who bought much earlier at much lower prices disposed their glove shares phase by phase for profit taking n move to recovery plays
14/01/2021 6:12 AM
CharlesT that's the reason why u will likely to see single digit PE for glove cos in 2021
14/01/2021 6:15 AM
CharlesT having said so, if KYY posts 5 articles a day to promote Supermax then maybe he will see some miracle to happen in Supermax's share price leh...

that's the power of faith...
14/01/2021 6:19 AM
LimitupLimitDown uncle u sitting on which penthouse floor? or quitely selling xD
14/01/2021 9:31 AM
sense maker A pathetic speculator is trying to save his skin. Yy just needs to borrow all money he can and put it into supermx and shut up lah.
14/01/2021 11:41 AM
LimitupLimitDown uncle, supermax dropping are you also shorting it xD
14/01/2021 12:34 PM
gladiator I don't see asp n profit will drop significantly in 2022 n 2023 maybe it will drop slightly only, unless 2022 onwards there are zero case of person infected. In March'20 all the analysis projected that covid will go away in 9 months base on previous experience of H1N1 but what do we see now?
14/01/2021 1:34 PM
Philip ( buy what you understand) Why did I sell all my topglove in May and never looked back? Probably because after that I bought myself some kpower and scib. The secret remains the same, sell when people are buying. Buying when people are selling.
14/01/2021 1:48 PM
williamtkb Bull and bear fighting.... We just hold our tickets and chips watching will do. Supermax shouldn't have much impact as Directors family hold more than 50% shares. Floating shares is lesser compare TG.
14/01/2021 1:48 PM
kelvin61 All this write up about the most powerful factor that will drive Supermax share price is rubbish. Majority of traders don't buy this story. They believe the days of old will return to the glove stocks in the not too distant future. The question is how fast. So, the play is concentrated on recovery stocks. Who gives a damn on all these repeated and recycle stories being spun again snd again like a broken record. In fact, the savvy ones are waiting for a big correction in the current prices of the big 4 glove stocks before buying.
14/01/2021 2:03 PM
emsvsi Thought process for glove lovers

1. mRNA vaccines are 94-95% effective and the majority of US and EU countries are going for them

2. Over time more will be vaccinated and new infections as well as mortality rates will come down

3. Demand for gloves will fall, especially from the panic-buying spot / adhoc order market. The non-medical usage will never be able to make up for the pandemic. Then the (very high up to 10x normal prices) ASP's made up of the spot / adhoc orders will fall quickly. As the past has shown countless times in every pandemic

4. So the longer you wait, the more get vaccinated, the lower the demand and the closer you get to ASP's and spot / adhoc demand reversing to the mean / normal

5. You say, "but what about the next few quarters 'supernormal' profit?" I say it is one-off. And the correct question is which institutional fund will buy (and they are the ones who move the market) knowing that it will come down back to pre-covid levels, knowing that after they buy, who is going to buy from them? Retailers?

6. Now, is there still value? Of course. But that is where Valuations come into play, and unfortunately in gloves, there is only sentiment and 'hot news' and short term traders. After all thats what got you into gloves in the first place isn't it, the lure of 'fast money'. Now fast money become long term bag holder
14/01/2021 2:06 PM
onionchong There's no way supermx can sustain profit like this. You shouldn't assume PE 10 for glove companies in the first place.
14/01/2021 2:53 PM
Stockisnotfun Everyone still not fear in gloves leh. They keep on buying. So do i understand they still not afraid so i shouldn't buy at all?
14/01/2021 3:30 PM
cicakman Now blame short selling.
14/01/2021 5:53 PM
Sesuke Seejvin 2
14/01/2021 6:17 PM
1lotman yes... supermax next QR will be record breaking.... but the share price... i dunno.... if only share market so straightforward, QR good then share price must go up.... i think i will be rich....
14/01/2021 6:49 PM
frleong2005 So much profit is no use if does perform well in stock market. Who wants to buy. Investors will lose money buying Supermax.
14/01/2021 9:08 PM
VenFx ME : THX SIFU TO ELABORATE THE UNTOLD POINTS IN SUPERMAX
DAM SCARY !


CharlesT The problem is everybody knew their asp n profit will drop significantly in 2022 n 2023

And also the number of shareholders in Supermax has increased drastically by more than 300% in one year's time. A lot of latecomers only started to buy for the "free" bonus issues n most of them are suffering paper loss now and praying for vaccine to be failed n more n more cases of covid 19 so glove co price will rebound n they can have a chance to make some money

While fund manager who bought much earlier at much lower prices disposed their glove shares phase by phase for profit taking n move to recovery plays
14/01/2021 6:12 AM
14/01/2021 10:33 PM
Vairocana9999 Uncle KYY, it is time to stop writing,no need to hard sell, people are immune to the fundamentals already, they just want to get rich overnight. So just relax, and sip your tea/coffee, watch the show.
15/01/2021 11:08 AM
Kimly2 VenFx, u shd scarry,
coz u miss the chance to sell above RM10.
15/01/2021 11:16 AM
Icon8888 Uncle is alway right
15/01/2021 11:17 AM
stockraider Listen to the daring JP Morgan advice, it make sense mah!
15/01/2021 12:01 PM
newbie8080 Hopefully, the IDSS will be further extended to 31/12/2021.
Else may be a setback to glove and many other stocks.
15/01/2021 2:51 PM

Agong declares emergency should increase the demand for gloves - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Tue, 12 Jan 2021, 12:03 PM


The Yang di-Pertuan Agong, Sultan Abdullah Sultan Ahmad Shah, has declared a state of emergency to curb the spread of Covid-19. In a statement, the Palace said the King had met with Prime Minister Muhyiddin Yassin at 5.30pm yesterday.

It said Sultan Abdullah has consented for the emergency to last until Aug 1 or an earlier date if Covid-19 cases are reduced and stabilised. The Palace said this had been discussed and approved by the other Malay rulers.

All investors should know that the Agong’s declaration of emergency will increase the demand for more gloves. They should not rush to sell their glove stocks without thinking rationally. 

Currently the number of Covid 19 cases is also surging in UK and many European countries and all these countries are lockdown to prevent the spread of the virus. 

Currently Malaysia has a total of 138,224 Covid 19 cases and 555 deaths. 

Currently USA has the most Covid 19 cases in the world. It has a total of 23.14 million Covid 19 cases and 355,245 deaths.

 

Due to Covid 19 pandemic the demand for gloves far exceeds supply. As a result, all the glove makers can easily increase their selling price to make more and more profit which are being reflected on the share prices. That is why each of the glove stocks has shot up a few hundred percent since the beginning of the pandemic about 1 year ago.

 

KLSE Malaysian stock market

This morning the share prices of all the glove stocks were going up steadily. But as soon as the Agong made the announcement, all the glove stocks started to drop. It looks like many investors do not know what pushes up share price.

Among all the criteria such as NTA, cash flow, debt dividend yield etc profit growth prospect is the most powerful catalyst to push the share up. Supermax has shot up about 800% in the last 1 year. It has gone up the most among all the glove stocks because it has the best profit growth rate.

Its 1st quarter ending Sept EPS 30.58 sen. Its previous quarter EPS was only 15.18 sen. It made 100% more than its previous quarter. Its 2nd quarter ending Dec should be another new record profit which will be announced in a few days times.   

 

 

 

Labels: SUPERMX
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ming If uncle able prof today he still buying.. mayb more powerful
12/01/2021 9:44 PM
gemfinder Realy many waterfish stil velieve kyy
12/01/2021 11:25 PM
Mini Bull @gemfinder, we all waterfish because we knew that gloves companies sure get profit for next few quarters, can others companies perform it ?
12/01/2021 11:29 PM
gemfinder Tomorow u wil lose all ur dog teeth
12/01/2021 11:30 PM
Totalpackage Not againnnn. Fool fooling the fools.... Fools fall for the fool. Again n again n again.
13/01/2021 1:07 AM
ming The only problem for glove is.. everyone know the result is good.. lol
13/01/2021 1:40 AM
qqq33333333 let's be clear about one thing. Kyy may be wrong about the reasons, the factors and Agong but don't count out a glove rally. wrong about the reasons, right about a rally. So what is more important?
13/01/2021 2:18 AM
qqq33333333 what more important? being right about why or making money?
13/01/2021 2:20 AM
qqq33333333 wrong can make money just as right can lose u money....
13/01/2021 2:21 AM
qqq33333333 making money is about money power. not about reasons.... and I am not talking about kyy money..... there are million times more money out there
13/01/2021 2:28 AM
DrLimKH KKY....let me consult my grandson first about yr joke of the day.
13/01/2021 2:59 AM
alphajack Ok la my old friend KYY, this article limpeh agree with you a bit. kikikiki huat arrrrrrr
13/01/2021 9:25 AM
laychee Still unable to get the logic here.
13/01/2021 11:20 AM
Sslee Haha,
The being ringht is Agong declares emergency should increase the demand for karex.
13/01/2021 12:30 PM
mamatede with MCO people travel less, less case moving forward. I dont see any spiked in gloves demand except if people tend to stock up. Regardless, vaccine is real and gloves counter will have to adjust with a more fair PE. thats fact.
13/01/2021 12:53 PM
Winner88 Link glove demand to darurat a bit far-fetched
13/01/2021 1:17 PM
Snowpiercer Big joke.....emergency to glove demand..... quite a con..
13/01/2021 1:40 PM
Mini Bull Heard MCO already kecut, how karex can benefit?
13/01/2021 1:41 PM
mamatede https://www.theedgemarkets.com/article/glove-bear-jp-morgan-tells-clients-gloves-aint-needed-during-vaccinations
13/01/2021 2:03 PM
kens88 I hold top glove. But I really don't see any connection between gloves and the non-military takeover Emergency
13/01/2021 3:23 PM
vcinvestor @kens88 there isn't. its just a salty old man
13/01/2021 3:25 PM
i3gambler Just ignore him.
13/01/2021 4:11 PM
Pinky hahahahahahahaha

Why? Darurat so many people sit at home so buy gloves to beat aeroplane?
13/01/2021 5:23 PM
supermaxdarren darurat might increase the rubber usage jeh....glove really don't really make sense..
13/01/2021 5:25 PM
duitKWSPkita Mr. KYY

























放下屠刀。。。




























Hope anyone can translate to Mr. KYY. Over supply and some fall to. Negative margin
13/01/2021 5:53 PM
williamtkb Actually the gloves supply and price a bit hard to justify. Vaccinate needs gloves or not are depends on hospital or Government SOP. No right or wrong
13/01/2021 5:59 PM
williamtkb Uncle KYY should request Bursa to on hold RSS during the State of Emergency and MCO. Then JP Morgan force to buy back gloves immediately as they don't want huge funds get stuck until end of State of Emergency
13/01/2021 6:02 PM
Addy President-elect Joe Biden gets first dose of Covid-19 vaccine
https://www.youtube.com/watch?v=VHCQ3cM02DQ
13/01/2021 6:28 PM
GLNT JP Morgan said no need gloves.
13/01/2021 6:29 PM
amateurJR Haha uncle needs wearing gloves to masturbate. Wakakaka
13/01/2021 6:30 PM
Addy Indonesian president Jokowi receives Covid-19 jab, starting vaccination
https://www.youtube.com/watch?v=ZMVAcPMCMGc
13/01/2021 6:32 PM
Addy Singapore PM Lee Hsien Loong receives first dose of Pfizer-BioNTech vaccine
https://www.youtube.com/watch?v=XSb7WB8SStw
13/01/2021 6:33 PM
Addy Israeli PM Benjamin Netanyahu Receives Pfizer Vaccine
https://www.youtube.com/watch?v=QUmaw2kERdg
13/01/2021 6:34 PM
Addy Kamala Harris receives Covid-19 vaccine: 'That was easy'
https://www.youtube.com/watch?v=X4itlOyqHyI
13/01/2021 6:37 PM
Addy President-elect Biden receives his second dose of coronavirus vaccine
https://www.youtube.com/watch?v=IU_dV6VOn1k
13/01/2021 6:42 PM
onionchong Agong declare emergency = increase glove demand
Agong give speech = increase glove demand
Agong climb staircase = increase glove demand
Agong pangsai = increase glove demand

- kyy
13/01/2021 6:45 PM
CharlesT Kyy confirmed got dementia...judging fm his look n his posts
13/01/2021 7:15 PM
Lance ...when kky promote anything, is a signal to just sell everything and RUN.
13/01/2021 7:45 PM
Michael Dreamun Mr.Senile turns to Mr.Desperate.
13/01/2021 7:50 PM
GillianTan78 This latest CNBC news may instead increase demand for gloves:

https://www.cnbc.com/2021/01/13/ohio-researchers-say-theyve-identified-two-new-covid-strains-likely-originating-in-the-us.html

New variant different from UK and South Africa just found in the US
14/01/2021 6:25 AM
arv18 @Haha uncle needs wearing gloves to masturbate. Wakakaka

HAHAHAHAHA
14/01/2021 6:42 AM
Andre Kua Well, I'm still working uncle... emergency meh? Policital emergency only.

If really emergency, buy foods...
14/01/2021 8:36 AM
ministerofgains status quo la what increase demand
14/01/2021 9:29 AM
vampire555 KYY, when it will back to RM10? after pandemic?
14/01/2021 9:52 AM
cu29ok i always wondering... out of my 10 friends, 10 of them wearing masks. But out of 10, none of them wearing gloves.
14/01/2021 9:53 AM
CharlesT gloves are mainly for export lah..maybe more than 90%...

dont compare mask with glove

MCO in Msia has nothing to do with the demand in glove
14/01/2021 10:07 AM
amateurJR High demand for using gloves in massage centres. All those china girls need to wear gloves to handjob.
14/01/2021 11:00 AM
kelvin61 This analogy of more gloves being used during an emergency is really dumb. It only reflects the writer's distorted view to shore up the glove counters share prices. It won't work because this old geezer has no business sense.
14/01/2021 12:22 PM
qqq33333333 gloves for hand jobs no business.
14/01/2021 3:21 PM
qqq33333333 have to wait. One day higher..........
14/01/2021 4:17 PM

Supermax update target price - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sun, 10 Jan 2021, 7:33 PM


Currently US has the most Covid 19 cases in the world. It has a total of 22.7 million cases and 381,480 deaths. These 2 figures are still surging as shown on the 2 charts below.

 

 

JP Morgan downgraded all glove stocks so that they can buy at cheaper prices. As a result, Supermax dropped from Rm 11.89 on 6 Aug 2020 to close at Rm 7.30. It dropped Rm 4.59 or 39% as shown on the  price chart below. It is so ridiculous to drop so much when the demand for gloves is still surging and the number of Covid 19 cases is also surging in most countries in the world especially in USA and in Europe.  

 

Due to Covid 19 pandemic, the demand for medical gloves far exceeds supply and all the glove makers can easily increase their selling prices to make more and more profit.

Supermax recently reported its 1st quarter, ending September, earning per share (EPS) of 30.58 sen. Its EPS for the previous quarter, ending June was 15.29 sen. The reason for the company to be able to increase its profit by 100% is due to surge in demand for medical glove for the coronavirus prevention. Its 2nd quarter ending Dec will be another new record profit which will be announced next week. 

Supermax is making more earning per share (EPS) in every quarter since the pandemic began in March, than any of its peers, namely Top Glove, Kossan, Hartalega, Comfort Glove, Care Plus and Rubberex, etc.

The reason why Supermax can make more EPS in every quarter than any of its peers is because it has its own brand and sale outlets in many cities in US and in many other countries around the world. Smaller glove makers cannot sell their glove at higher price than Supermax because they have to sell their gloves through agents or middle men. 

To be very safe and sure of making money, I assume the company does not increase its selling price for the whole financial year.

Its annual EPS will be 4 X 30.58 sen = Rm 1.22

To be very safe and easily achievable I based on PE 10, my target price will be Rm 12.20.  

The last traded price was Rm 7.30 per share

 

 

Labels: SUPERMX
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sting79 Successful companies spent so much on marketing/promotions for its products and services to be ingrained into the public's mind. But Koon Koon only need to spend $0 to write articles promoting shares, so that he can sell to people. Free online marketing, what a powerful tool that is the digital world.
10/01/2021 8:14 PM
i3gambler Haha....People expect the ASP to go down very soon but KYY still use the current EPS to estimate the fair price.
11/01/2021 5:20 AM
calvin69 I think you'll find most analysts are using their estimate of 'normalised' earnings 2-3 years out for their TPs
11/01/2021 6:31 AM
Morpheus61 calvin69, the Analysts theory is a Fairy Tale spun to suit their CW breakeven. This kind of Value Analysis does not exist anywhere else in the world.
11/01/2021 8:46 AM
Goldberg Supermax is expected to announce a whopping PAT of RM 1 .1 billion or RM0.40 sen earnings per share for the coming quarter. This will leaves Supermax with a Trailing PE of just 9.3 times.

(2.31+5.42+30.58+40=78.31 sen)

7.30/78.31=9.3

Supermax is deeply undervalued.
11/01/2021 2:07 PM
i3gambler The correct way to estimate the fair value of glove companies:
1) Estimate/list all the future Quarterly EPS before their earning back to normal.
2) All the above EPS to be discounted back to today, i.e. Present Value of them.
3) Guess when will their earning drop back to normal, 2023? 2024? or 2025?
4) Guess what will be their yearly EPS when they are in normal market?
5) Guess what is the reasonable PE ratio when they go back to normal, 30, 40 or 50?

Sum up the above and that is your estimation of their today's fair value.
11/01/2021 3:39 PM

Short Sellers caught with pants down - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sun, 10 Jan 2021, 7:29 PM


Since the Securities Commission and Bursa lifted the ban on short selling from 1st January 2021, short sellers started to sell short aggressively. They were so sure of making money. They completely ignore the basic fundamental quality of the stocks. 

 

Statistics show that in the stock market, 80% of the investors lose money, 10% break even and only 10% are winners. Short sellers are among the top losers.

Covid 19 pandemic is affecting all the listed companies except medical gloves and medical products for the virus prevention. As a result, the demand for gloves far exceeds supply and all the glove makers can easily   increase their selling prices to make more and more profit which should be reflected on the share prices.

Unfortunately, short sellers might think the starting of vaccinations will be able to stop the spread of the coronavirus and reduce the demand for gloves. Scientists advised that at least 75% of the populations of the world must be vaccinated before the coronavirus can be stopped from spreading. It will take a long time to produce enough of vaccines to vaccinate so many people. Moreover, all medical workers have to wear gloves to be safe. As a result, additional gloves will be required.

Currently the number of Covid 19 cases is surging in many countries especially in USA and in most countries in Europe. US has the most Covid 19 cases in the world. US is the biggest market for our gloves. Supermax has its own sale outlets in many cities in US.     

That is why Supermax shot up 35 sen, 3 sen, 16 sen and Rm 1.25, totalling Rm 1.79 in the last 4 trading days.

Short sellers might think that since Supermax has shot up Rm 1.79 in the last 4 days, they can sell short to make money.

My advice is that they must not ignore the good fundamentals quality of Supermax.

When an investor buys a stock, he expects to earn from share price increase and dividend. As almost all the listed companies do not give out more that 5% per annum, he can only make profit if the share price goes up. The share price can only go up if the company continues to report increasing profit. Supermax has gone up the most because it has the best profit growth rate as shown on the table below.

 

Name      latest price       EPS      Quarter ending

Hartalega   Rm 12.50         15.95sen         Sept

Kossan       Rm 4.50           13.6sen          Sept

Top Glove   Rm 6.51           29.64              Nov 

Supermax   Rm 7.30           30.58sen         Sept 

Supermax reported EPS 30.58 sen for 1st quarter ending September. It made 100% more than its previous quarter. Supermax profit for its 2nd quarter ending December should be another new record high. The company will most likely report its 2nd quarter result next week.

Even if Supermax cannot increase its selling price for its gloves, its annual profit will be 4 X 30.58 sen = Rm 1.22. Based on PE 10, it should worth Rm 12.20 per share.   

Short sellers should be careful and don’t lose your pants.

 

Labels: SUPERMX
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EPS comparison of 4 largest glove companies - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Tue, 5 Jan 2021, 9:15 PM


Today all the glove stocks rebounded. Investors should be interested to see the EPS and share prices of the 4 largest glove makers for comparison so that they can select the best stock to buy.

Among all the stock selection criteria such dividend yield, cash flow, NTA, debt etc the most powerful catalyst to push up share price is EPS growth rate.

For example, currently most of the property companies are selling below their NTA even though they may have healthy accounts. The share prices of property companies remained depressed because they do not have profit growth prospect. As you can see, there are so many unsold properties everywhere.

When an investor buys a stock, he expects to earn from share price increase and dividend. As almost all the listed companies do not give out more that 5% per annum, he can only make profit if the share price goes up. The share price can only go up if the company continues to report increasing profit. Supermax has gone up the most because it has the best profit growth rate.

Name      latest price   up     EPS    Quarter ending

Top Glove   Rm 5.72    +22sen  29.64          Nov  

Hartalega   Rm 10.62   +12sen   15.95sen   Sept

Kossan       Rm 4.05    +11sen   13.6sen     Sept

Supermax  Rm 5.86     +35sen   30.58sen   Sept  

Supermax reported EPS 30.58 sen for 1st quarter ending September. It made 100% more than its previous quarter. Supermax profit for its 2nd quarter ending December should be another new record high. The company will report its 2nd quarter result in Mid-January.

 

 

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abcb Keep on promotion his own portfolio of Supermx
05/01/2021 9:23 PM
emsvsi Dear Koon Yew Yin,

Why focus on a stock where you know for sure the profits and selling prices will go back to pre-pandemic levels...it doesn't matter if its this year or next...and where the longer you hold, the closer we get back to normalcy and the lower the value...

Where something that sold for USD 20 is now sold for USD 200 with no fundamental change - gloves are still gloves, they cant make you fly - and where supply is unlimited, you can keep making them - unlike land which is finite...

My sincere advice is to switch to recovery stocks, top pick Genting Berhad. FA, TA/Chart are all aligned. Its still early days and if you get in now I'm sure you can make back what you have foregone in Supermax and Top Glove

Sincerely,
EMSVSI
05/01/2021 10:01 PM
kelvin61 Looks like a bear trap. The glove stocks are in downtrend mode. Never catch a falling knife regardless of how good earnings are in the short term. It won't last as their ASPs were mediocre before the pandemic. It will retrace once the vaccine is distributed and given within the next 12 months. Gullible traders got carried away thinking the party will last forever.
05/01/2021 10:07 PM
GooShem Khairy to reveal the Gomen's vaccine plan this Thursday.
05/01/2021 10:10 PM
patrico8 Ridiculous, ridiculous is the theme. Let's see.
05/01/2021 11:46 PM
issac99289928 Supermx will shoot up soon. so are the rest of the well known glove stocks.
06/01/2021 7:54 AM
azee https://klse.i3investor.com/blogs/IR4Revolution/2021-01-06-story-h1538492388-Stock_picks_2021.jsp
06/01/2021 9:33 AM
Junichiro Posted by emsvsi > Jan 5, 2021 10:01 PM | Report Abuse

Dear Koon Yew Yin,

Why focus on a stock where you know for sure the profits and selling prices will go back to pre-pandemic levels...it doesn't matter if its this year or next...and where the longer you hold, the closer we get back to normalcy and the lower the value...

This paragraph sums up all - the disconnect between profit n price as markets are never rational since day 0.
06/01/2021 9:56 AM
calvintaneng Time to take profits from gloves

Already up 500% to 2,000%

Enough loh

Now Fcpo Jan 2021 going to world record high of Rm4000

Palm oil will take over from glove now
06/01/2021 10:47 AM
kelvin61 Agreed 100%.
06/01/2021 12:53 PM
Pinky Tak habis habis unker ni
06/01/2021 2:56 PM
gladiator Now where got up 500% to 2,000%?? Kossan & Harta now up 100% only. Top glove around 300% and Supermx around 1,000%
06/01/2021 4:52 PM
sostupid Buying stocks is based on opportunity cost..you buy into weakness and sell on strength...it is not that the glove stocks are not good it is that there are better alternatives when it comes to investing. we are talking about investing and not discussing gloves in perspective, hope this is clear to you?

Long term economics of glove stock undeclared: you buy something when it is useful to other people, investing is not about eps because eps already factored into share price or blown out of proportion. you buy something because you expect business to grow because of other factors outside the company. The company can grow and grow but this should not be the account for you to buy its shares. business growth comes from outside company not the company's own growth (not the company's own business expansion), you get this clear or not.

For the gloves to experience forever growth: it means you are predicting the pandermic to go out of hand..... that the pandermic situation will go out of control (business growth depend on development outside the company and not the company's own factories' growth). this is less lightly to happen because our life is going to go back to normal not in the same way like before of course.
06/01/2021 10:17 PM
calvintaneng Posted by gladiator > Jan 6, 2021 4:52 PM | Report Abuse

Now where got up 500% to 2,000%?? Kossan & Harta now up 100% only. Top glove around 300% and Supermx around 1,000%



HAHAHAHAHA!!!

Calvin bought Supermax at Rm1.73 and sold above Rm18 for 1,000% gain

Bought Supermax C87 at 34.5 sen & SOLD ABOUT RM7.00 FOR OVER 2,000% GAIN!

2019 WAS OGSE BULL RUN

2020 MEDICAL GLOVE SUPERBULL

2021?

PALM OIL BULL RUN OF COURSE!!!

SUCCESS BEGETS SUCCESS!!!
06/01/2021 10:23 PM
sostupid This gloves does not have new role in people's life..how growth outside company going to come. electric cars is car transformation...petrolium is the amount of car on the road...see it all depends on factors outside the company to determine whether we buy a stock or not. The stock itself...whether selling gloves or what it is eps is not really a matter to consider for buying a stock for an investors because we are investors and not doctors who do the innoculations for people..we are investors not doctors. common, please don't mislead people especially when you are malaysia's stock icon like warren buffett of malaysisa.
06/01/2021 10:23 PM
sostupid in brief....The two situations: 1. you need pandermic patients to grow forever, this is not going to happen because by then we all already kena ourselves.. . what for we need to buy any more stocks right. 2. new role for gloves..you can not wear gloves on your legs or not on your head...that is called condoms. even condoms experience stagnation because you can not find new roles for condoms.

The conclusion....This is called junk bonds especially they issues so much shares to dilute the company's existing net assets per share. please dont ask people to buy junk bonds.
06/01/2021 10:36 PM
calvintaneng Sifu PureBULL

TIME HAS COME FOR YOU TO RIDE ON THE UPCOMING PALM OIL SUPERBULL

MATTER OF TIME CPO WILL OVERTAKE ALL TIME HIGH OF rm4,321 OF YEAR 2008
07/01/2021 5:42 AM
williamtkb TG 28 factories just resume operation. If Tan Sri said the impact of 1 month partial shutdown to the Revenue and profit in AGM? Will today EPF selling again due to political unstable?
07/01/2021 6:44 AM
ZoomUp Fintec's EPS is 34 sen better than top glove 29.64, so Fintec is very much undervalue.
07/01/2021 7:55 PM
gladiator Now glove stock come back lo..cheap that time dun want to buy? Pandemic out of control in many countries already. Have to face reality la..Like it or not no one know haw many times virus will mutate you want wait TOP 4 up 10% only buy meh. Palm oil already all time high still chase for what?
08/01/2021 6:34 PM
gladiator Fintech is one off investment gain don be misleading.
08/01/2021 6:35 PM

Supermax price plunging is so ridiculous - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Tue, 5 Jan 2021, 9:11 AM


Supermax started dropping on 20th October 2020 when its share price was Rm 10.36 to close at Rm 5.51 today.

It dropped Rm 4.85 or 47% in the last 3.5 months. This massive drop is so ridiculous when the number of new Covid 19 cases is still increasing daily. As a result, the demand for medical gloves is surging.

Currently, US has a 21.11 million Covid 19 cases and 360,028 deaths. US has the most cases in the world.  

 

The table below shows the target prices of so many Investment Banks. They all cannot be so wrong.  

All medical staff have to wear gloves to do testing and vaccine injections as shown on the above photos. In fact, additional gloves are required for vaccination and testing for coronavirus.

Supermax reported 1st quarter ending Sept EPS 30.58 sen. Its previous was 15.29 sen. Its profit jumped by 100% because it could easily increase its selling price  due the surge in demand for gloves. Based on this fact, its 2nd quarter result should be another record high profit. The company should make the announcement in mid-January.

Even if the company cannot increase its selling price its annual profit will be 4 X 30.58 = Rm 1.22. Based on PE10 it should be Rm 12.20 per share. Based on PE 15 it should be Rm 18.30 per share.     

 

Labels: SUPERMX
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1lotman yes. so ridiculous.. only u r right all the time...
05/01/2021 7:12 PM
michaelwong Don't be too optimistic that the price is going to rise further . A technical rebound usually occurs when the stock is in an oversold position . Just pray for reversal after a long hauled downturn pinned down by the emergence of vaccines into the global market that could put a halt to the spread of Covid19 pandemic diseases
05/01/2021 7:21 PM
kelvin61 Looks like a bear trap. The glove stocks are in downtrend mode. Never catch a falling knife regardless of how good earnings are in the short term. It won't last as their ASPs were mediocre before the pandemic. It will retrace once the vaccine is distributed and given within the next 12 months. Gullible traders got carried away thinking the party will last forever.
05/01/2021 10:06 PM
ahbah He who laughs last laughs the best.

Just see who laughs last ?
05/01/2021 10:50 PM
tamp0i The more blogs you wrote, the more plunges it took... Stop please and be silent, watch from sidelines
05/01/2021 11:17 PM
sensonic I WILL BUY MORE IF IT DROP FURTHER.
05/01/2021 11:32 PM
patrico8 New grounds, so quite ridiculous fall.
05/01/2021 11:42 PM
sense maker Yy’s articles repeat the same points endlessly and ridiculously. A rich man is behaving like a pathetic desperado.
06/01/2021 5:11 AM
ITreeinvestor https://www.voanews.com/covid-19-pandemic/mexico-grants-emergency-approval-astrazeneca-oxford-coronavirus-vaccine

No glove wearing during vaccine injection.
06/01/2021 7:13 AM
ITreeinvestor https://www.chroniclelive.co.uk/news/north-east-news/first-north-east-nhs-staff-19567342
06/01/2021 7:15 AM
Pinky From "illogical" to "ridiculous"

That's how low this old man has become.
07/01/2021 9:32 AM
Zuliana Will own nothing, and Will be happy.
Remember This.
07/01/2021 12:42 PM


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