Over the weekend, I called the experienced uncle (30 years’ experience) to thank him for my small gain so far for both Top Glove and Supermax. He informed me to watch out for Top Glove this week:

1. TOPGLOV bonus issue ex-date is 3-Sep
2. Sifu said TOPGLOV is in uptrend to reach RM34 after finding support at RM25.
3. Sifu said the fear of vaccine has pretty much priced in:
   
   a. In August alone, COVID-19 cases has increased by 43% to 25.4 million cases. 
   b. But Top Glove share price stays flat at around RM26. It actually declined 2%!
   
   That is a surprise to me. But sometimes fear of the unknown (in this case vaccine) has pretty much played its role here. Between 43% increase in COVID cases and 2% decline in share price, we are talking about 45% difference. This is the power of the fear of vaccine. But the good news is the fear factor can cause up to 50% impact to share price, so there is only 5% left. That is the good news, 5% downside more to sell in case people still afraid of the so called vaccine.

Some important part of the discussion:

1. TOPGLOV bonus issue ex-date is 3-Sep

Me: My friend told me Top Glove bonus issue ex-date is on 3-Sep. What does that mean?

Sifu: It is like Merdeka Sales for some supermarket. It has an expiry date. So for Top Glove, if you have Top Glove share on or before 4.59pm 2-Sep... then you are entitled to the bonus issue.

Me: So my 1000 shares will become how many shares ?

Sifu: 3000 shares.

Me: Wow, that's great ! 

Sifu: Hahaha, yeah to most people it is a good news. But don't forget the share price will adjust down also. Let say on 2-Sep it close at RM30, then after ex the share price will be RM10 the next day.

2. Sifu said TOPGLOV is in uptrend to reach RM34 after finding support at RM25.

Me: So, how much is Top Glove worth sifu?

Sifu: Already told you last time RM34. Go back check your memory.

Me: Hahaha OK OK sorry. By the way, my previous blog already show the details here.
 

https://klse.i3investor.com/blogs/feliciawong/2020-08-26-story-h1512539718-TOP_GLOVE_TOPGLOV_How_Low_Can_Share_Price_Go.jsp

3. Sifu said the fear of vaccine has pretty much priced in:

a. In August alone, COVID-19 cases has increased by 43% to 25.4 million cases.  
b. But Top Glove share price stays flat at around RM26. It actually declined 2%! 

That is a surprise to me. But sometimes fear of the unknown (in this case vaccine) has pretty much played its role here. Between 43% increase in COVID cases and 2% decline in share price, we are talking about 45% difference. This is the power of the fear of vaccine. But the good news is the fear factor can cause up to 50% impact to share price, so there is only 5% left. That is the good news, 5% downside more to sell in case people still afraid of the so called vaccine.

Full conversation:

Me: Selamat Hari Merdeka Sifu! Thank you so much sifu, I earned a bit after talking to you when Supermax was at RM16 and Top Glove at RM25.

Sifu: You are welcome. Keep both of them, they are still good stocks at current level.

Me: My friend told me Top Glove bonus issue ex-date is on 3-Sep. What does that mean?

Sifu: It is like Merdeka Sales for some supermarket. It has an expiry date. So for Top Glove, if you have Top Glove share on or before 4.59pm 3-Sep... then you are entitled to the bonus issue.

Me: So my 1000 shares will become how many shares ?

Sifu: 3000 shares.

Me: Wow, that's great ! 

Sifu: Hahaha, yeah to most people it is a good news. But don't forget the share price will adjust down also. Let say on 3-Sep it close at RM30, then after ex the share price will be RM10 the next day.

Me: So, how much is Top Glove worth sifu?

Sifu: Already told you last time RM34. Go back check your memory.

Me: Hahaha OK OK sorry. By the way, my previous blog already show the details here.
 

https://klse.i3investor.com/blogs/feliciawong/2020-08-26-story-h1512539718-TOP_GLOVE_TOPGLOV_How_Low_Can_Share_Price_Go.jsp

Me: How about vaccine? People told me we are going to have it soon!

Sifu: I have answered you 3 times on vaccine. We have to be humble and don’t simply assume that this vaccine or that vaccine will save us all in a short time. But two facts has emerged recently:

a. In August alone, COVID-19 cases has increased by 43% to 25.4 million cases.  
b. But Top Glove share price stays flat at around RM26. It actually declined 2%! 

That is a surprise to me. But sometimes fear of the unknown (in this case vaccine) has pretty much played its role here. Between 43% increase in COVID cases and 2% decline in share price, we are talking about 45% difference. This is the power of the fear of vaccine. But the good news is the fear factor can cause up to 50% impact to share price, so there is only 5% left. That is the good news, 5% downside more to sell in case people still afraid of the so called vaccine. So it works out to be RM25 is really like the Super Floor level for Top Glove.