Highlights

Learn from my Uncle (Retired Fund Manager)

Author: learnfromuncle   |   Latest post: Sat, 7 Nov 2020, 10:38 PM

 

GLOVE STOCKS - A sharing by My Uncle (Retired Fund Manager)

Author:   |    Publish date:


It has been a few months since I had the chance to meet my uncle due to COVID-19, movement restriction. Finally, today I manage to meet up with him for a yumcha session and of course for me to learn more from him as he is a retired fund manager.

As a newbie that just opened an account in March, I need to learn more about investing as I believe the stock market may provide me financial freedom if I gain the right knowledge & correct tactics. My retired uncle, who previously served as a senior fund manager in one of the top performing unit trust funds in Malaysia will the right person to guide me.

So finally I managed to meet him after 3 month since opening my stock account as he was the one who encouraged me to start and buy some stocks listed in Bursa. (Of course I just followed and didn’t really ask much because my dad also told me to follow him).

During the yumcha session, I asked him some newbie questions, and whether I can share it with everyone (as my friends also followed what I have bought and eagerly want to know what they should do now). So yes, he allowed me to share it so that it may also benefit to everyone.

So below are some of the questions I asked him during our yumcha session:

 

ME : Can we still hold the glove stock you recommended us to buy during March ?

HIM : He smiled, and ask me what is the reason I bought?

 

ME :  (Feeling shy as I have no idea why I bought at that point of time, as I was still new in the stock market. It was during May suddenly prices shoot up and news started to spread that Glove demand exceeds supply and it will last for the next one year at least. So my answer pretty simple) "Because of covid!!!".

 

HIM : Do you think this covid pandemic will end soon?

ME : (I did do some homework) I answer confidently by telling him at least next year or until vaccine is ready !

 

HIM :  (he started to get serious) Look, if vaccine is ready, how many people in this world will go get themselves vaccine?

ME : Definitely everyone! Everyone also scare die!

 

HIM : Do you know how many people are there living on earth?

ME : I google immediately and it show 7.8 billion people as of March 2020.

 

HIM : (He smile again) Told me its going to take years for everyone to get vaccine! The Covid pandemic doesn’t magically go away because vaccine has been produced.

ME : (I agreed with what he said but I just kept quiet because I didn’t really know what he was implying) I just quietly nod my head.

HIM : So he continued explaining, gloves will be needed even more when vaccine is ready as doctors or nurses must wear gloves for administering vaccine.

 

ME : (I quickly moved on to the next question) So we can still hold lah? But price drop more than 10-30% lately, if so good why did it drop? (I refer to SUPERMX and TOPGLOV).

HIM : This is a very good question, but first of all, you need to learn about fund movement which can be complicated.

 

ME : (i just keep quiet and wait him to further explain from here)

HIM : If you noticed, beginning of March, prices were not moving as much, during which Covid have already spread seriously in CHINA and EUROPE also USA but glove stocks did not rally until MAY. It started to move right after a well know investor in Malaysia name "K" share an article about gloves and thereafter his followers and other smart insiders started to buy in heavily in May causing price to shoot up.

 

ME : So they left already ?

HIM : Looking back at the recent movement, definitely some left during the peak but he told me not to worry, as he can see that they are starting to buy back again. When all glove company posting good result, price start to fall, and come with numerous bad news like margin capping cut, windfall tax, china glove expansion. He tell me this is all planned by big local fund to trick normal retailer into panic sell.

 

ME : Why would they want to do that? If prices keep going up isn't it even better?

HIM : Simply, many fund houses has yet to enter because they have to wait for result release for confirmation, they couldn’t just buy based on expectation. They require real facts & data to access risk and reward for long term. He explained that most of the fund will not enter just for a few days or weeks, some of the fund usually invest for at least half to one year or even longer but prices already shoot up by smart investor/insider and therefore they need to get their "people" to issue some bad news to reduce confident of investors. With bursa having to ban short selling, prices are even harder to go down without any bad news.  

 

ME : (I start to get confused). So I just hold and wait for it to go higher or should I sell?

HIM : (He laughed and asked) "Have you earned enough" ?

 

ME : I honestly told him that I only managed to buy a little as my fund quite limited so surely it's not enough but now after few months of saving up from paying for bank loans, I have extra pocket money!!!

HIM : Then you should consider now as an opportunity to increase your position ! Every fund house is buying quietly now because next few quarter result already confirm to be better than the previous one. If you look at most of the bank research, you can see that especially SUPERMX and TOPGLOV have higher Price Target because Fund houses are actually buying this two compare to the others. He further explained, some fund are stuck with many stocks during March flash crash, they only just managed to exit some and start allocating to glove stock as gloves is the only shining business now.

 

ME : (actually I get the answer I want already) Just to learn more, I ask him another question "why smart retailer want to sell off some at peak when it possible to go higher up?

HIM : Well, if you look at the time they sell off, its actually due to margin capping reduction and they are well-known to use margin account aggressively. The due date to sell off  was by JUNE which will be over soon, since then they are also worried if short selling is not extended further, the price may further sell down by institute trader. (he taking a breathe) Luckily bursa has just extended the short sell until end of the year, which provides big opportunity for everyone that has yet to enter. I am pretty sure, "they" will be buying back in coming weeks as the prices already drop a lot from peak and the doubt of short sell extension have been clear.

 

ME : Is this short sell extension really that important that it could influence the market so seriously?

HIM : Yes, if you look at March, right after BURSA stopped short selling, every stock start to rally and rebound by the end of April when it was announced to further extend to June, again many stock rally up further. It's much easier for stocks to move with short sell still on suspension.

 

After long yumcha session with my uncle, my conclusion is that I still have a lot to learn from this market and from my uncle.

 

Hope for next yumcha session with him and to learn new insights to be shared with everyone.

 

During the time i share this yumcha session, I still holding SUPERMX. Hopefully it will double up from here. 

 

Above sharing is not to telling you to buy or sell, to buy or sell depends on your own judgement.

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  8 people like this.
 
DickyMe Do fund managers retire?
28/06/2020 8:43 PM
tallman The way he wrote the article like SPM essay
28/06/2020 8:49 PM
EngineeringProfit Had he sold his house to bet in all the glove counters?
28/06/2020 8:52 PM
greedy44444 Next year Supermax could reach RM25...sailang now !!!
28/06/2020 9:19 PM
PMHLDG288 The Securities Commission and Bursa Malaysia have announced that short-selling has been suspended until 30 June 2020 and there is no further announcement.
28/06/2020 9:23 PM
Michael Kwok No till year end lah.Already announce short selling suspended till year end.
28/06/2020 9:35 PM
PMHLDG288 many desperate bloggers ask greater fools to buy their stock.Supermax is fools' worst nightmare.
28/06/2020 9:37 PM
PMHLDG288 Michael Kwok No till year end lah.Already announce short selling suspended till year end.

show me the link.
28/06/2020 9:39 PM
Dave92 Newbie never see glove strong downtrend during sars time.
Low go lower.
28/06/2020 9:41 PM
PMHLDG288 I use HL platform. no further announcement.
28/06/2020 9:41 PM
Dave92 So he continued explaining, gloves will be needed even more when vaccine is ready as doctors or nurses must wear gloves for administering vaccine.

Tis mean his uncle also lousy fm.

Just one off gain and nt sustainable
28/06/2020 9:43 PM
Targeted @PMHLDG288 The Securities Commission and Bursa Malaysia have announced that short-selling has been suspended until 30 June 2020 and there is no further announcement.

>>>>>>>>>>>>>

Confirmed fool !!!
28/06/2020 9:50 PM
PMHLDG288 the blogger is the uncle himself. he did not even know there is no further extension of short selling .
28/06/2020 9:52 PM
Targeted PMHLDG288 the blogger is the uncle himself. he did not even know there is no further extension of short selling .

>>>>>>>>>>>>

No point talking anymore, everybody now knows you are either a moron or in a constant state of halucination!!!!!
28/06/2020 9:55 PM
PMHLDG288 dare to show me the link of new announcement? you can't because there is no new announcement.
28/06/2020 9:58 PM
Rosen Stella Hi pmhldh288 check this out https://www.theedgemarkets.com/article/suspension-short-selling-bursa-malaysia-extended-until-yearend

Dave, Personally I think use SARS to compare with covid is not matching.for SARS only total of 8,098 people worldwide became sick with SARS during the 2003 outbreak. Of these, 774 died.

While for covid up to date is 10,129,955 cases and Deaths
502,208. The different with SARS and the infection rate is way so much different.
28/06/2020 10:05 PM
Targeted PMHLDG288 dare to show me the link of new announcement? you can't because there is no new announcement.
28/06/2020 9:58 PM

>>>>>>>>>

Idiot !! Google it lah!

If i give u link, then are you going to buy?

Dont know how to source info better just dont buy la! Just watch the show this week !
28/06/2020 10:07 PM
idkdontaskmelol Wah, idss extend till year end this news spread everywhere already 2 days ago still got ppl dunno and dare others show announcement? Y got so lousy investor/trader 1? Alamak
28/06/2020 10:18 PM
paperplane Post removed. Why?
28/06/2020 10:23 PM
paperplane Post removed. Why?
28/06/2020 10:23 PM
CCCL Wayang kulit punya story teller: left hand -ME, right hand - HIM( his uncle)
28/06/2020 10:31 PM
espionne If idss suspended until YE then it's good news for glove stock, otherwise glove stock will be targetted
28/06/2020 10:33 PM
gohkimhock Just go out and do a simple survey. How many people are actually wearing gloves? Do you even wear a glove?
28/06/2020 10:39 PM
shorter I smell bullshit, please show proof of that 'fund manager uncle' of yours
28/06/2020 10:40 PM
Lucas Low great sharing
28/06/2020 10:50 PM
ironrobe3388 fund managers usually perform poorly. check all the unit trusts' performance .
28/06/2020 11:12 PM
Warrant Buffet Supernormal profit is all the excess profit a firm makes above the minimum return necessary to keep a firm in business.

The theory of perfect competition suggests that supernormal profit can only be earned in the short term. In the long-term firms will make normal profit.
28/06/2020 11:17 PM
ironrobe3388 Warrant Buffet is better than warren buffett
28/06/2020 11:23 PM
Muhdali AT take over glove factory at sungai petani.. now only 11 cent.. last friday news out
28/06/2020 11:26 PM
28/06/2020 11:32 PM
gladiator https://www.youtube.com/watch?v=mbLMnxhDgGk
29/06/2020 12:13 AM
PotentialGhost All rubbish
29/06/2020 9:20 AM
Goldberg FY 2021, PAT should be at least RM 1.2 billion.

EPS = 1200/1360 = 0.88

PER = 15, the target price = 13.23
PER = 20, the target price = 17.60

You and your brilliant Uncle will be laughing all the way to the bank.
29/06/2020 1:46 PM
Primeinvestor toking cock la this article, the ME, and HIM, is the same person, who is holding supermax hahaha
29/06/2020 2:49 PM
gloveharicut SMART BOY with a SMART UNCLE
29/06/2020 3:02 PM
Goldberg Maybank IB Share Margin Valuation (Latest Revision)
The ceiling price for rubber gloves counters effective 30th June 2020

Comfort @ RM3.42
Harta @ RM10.52
Kossan @ RM7.87
Ruberex @ RM2.21
Supermx @ RM7.41
Topglov @ RM18.00

**The valuation will be based on the ceiling price or last closing price, whichever lower.
29/06/2020 3:30 PM
learnfromuncle thanks to my uncle, I manage to add position this morning when it turn red. hope everyone benefited from my sharing. I shall meet him again in future.
29/06/2020 3:44 PM
360Capitalist Thanks to your uncle.
29/06/2020 5:08 PM
yorkyork after 6 months , congrats u know how to ask. next time do it earlier.
30/06/2020 1:51 PM
yorkyork if everyone know the profit is 220m for incoming quarter. when in the future the profit start drop 会掺不忍睹。if u want bet for it after this quarter result out, must clear some already.
30/06/2020 1:57 PM
yorkyork supermx insider trading, all sudah lupa? go court case one his wife. now the things is the banker and the company have some deals. coperate games.
30/06/2020 2:03 PM
AdamK733 as if you cannot ask your uncle during MCO using zoom or whatapps call.....pure BS.
30/06/2020 2:09 PM
yorkyork he want u buy his group ticket all masuk at 7.00
30/06/2020 2:57 PM
yorkyork if he know use zoom, should bought zoom already that time.马后炮
30/06/2020 2:58 PM
yorkyork covid so big, until u can miss out so much 200-400% and now want just to earn another 50%? 我也醉了
30/06/2020 3:01 PM
davidkkw79 what a fake story... U made me laugh
30/06/2020 10:41 PM
Reedler Lmao..these comments are better than the story itself ..haha
02/07/2020 12:20 AM
ucanttouchme Does it matter whether is true or fake. this counter really big up these few days
02/07/2020 10:06 AM
Rosen Stella Yeah I brought supermx after reading this, making 20+% just within 4 day. Thank to your uncle and your sharing!
02/07/2020 10:12 PM
thebline you sound like roberk kiyosaki referring to his rich dad.
But still i love your story telling
14/07/2020 3:17 PM


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