Highlights

Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Mon, 26 Oct 2020, 5:21 PM

 

What investors should do when all Glove stocks drop? Koon Yew Yin

Author:   |    Publish date:


Today Top Glove reported EPS 15.95 sen, Q on Q 271%, Y on Y 1,514%. Despite Top Glove’s historical unprecedented profit announcement, it dropped 64 sen and dragged down all the other glove stocks. Supermax dropped 65 sen, Comfort dropped 41 sen, Rubberex dropped 30 sen and Careplus dropped 47 sen.

By the way, it is relevant to point out that for the quarter ending June, Supermax reported EPS 15.29, Q on Q 462% and Y on Y 2,552%. It has a better profit growth rate than Top Glove. Based on this profit growth rate, its next quarter profit should be phenomenal. 

 

Currently, there are 30.076 million Covid 19 cases and 945,845 deaths in the world. The daily new cases and deaths as shown on the above 2 charts are still spiking up daily.

The Covid 19 pandemic is affecting everybody’s movement and all businesses including listed companies with the exception of medical gloves and medical products for the virus prevention. As a result, the demand for glove far exceeds supply and all glove makers are increasing their selling prices continuously to make more and more profit. The additional selling price is pure profit because it does not involve production cost.

Investment Banks

It is also relevant to point out that all Investment Banks usually have many stocks in their portfolio. As I said earlier, the pandemic has affected all the listed companies’ share prices with the exception of glove stocks. They would have to sell most of their holdings to buy glove stocks. That is why the daily traded volume for each of the glove stock is tens of million shares. Perhaps a few of the Investment Banks have been pushing up and down the glove stock prices to make more money.

As a result, many ordinary investors get so confused and worried.      

Today all the glove stocks dropped which defies all logic. Long term investors should not worry about the frequent price fluctuations because the long-term profit growth prospect is still very promising.

Even if you sell now, you will still make a lot of money. But what can you do with the sale proceeds?

Which stock with a better profit growth rate, can you buy? My advice is to buy glove stocks and wait patiently.  

 

 

Share this

Related Stocks

Chart Stock Name Last Change Volume 
TOPGLOV 8.70 0.00 (0.00%) 44,018,500 
SUPERMX 9.21 -0.06 (0.65%) 66,769,300 
HARTA 17.68 +0.36 (2.08%) 5,594,800 
KOSSAN 7.46 +0.07 (0.95%) 11,229,100 
COMFORT 4.15 -0.15 (3.49%) 54,814,300 
CAREPLS 3.71 -0.07 (1.85%) 80,936,900 

APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

268  670  531  700 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 MRDIY 1.75+0.15 
 VSOLAR 0.03-0.005 
 ASB 0.185+0.02 
 MAHSING 0.98-0.06 
 LUSTER 0.17-0.005 
 KGROUP-OR 0.0050.00 
 IRIS 0.26-0.005 
 KANGER 0.1750.00 
 CAREPLS 3.71-0.07 
 SAPNRG 0.100.00 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
PARTNERS & BROKERS