gloveharicut
No year-end party for GLOVEs bulls?
gloveharicut
Publish date: Tue, 29 Dec 2020, 03:20 PM
{{{PM me to join GLOVE Private Discussion Room}}}
I invite you to read my blog and make a smart GLOVE decision.
https://klse.i3investor.com/blogs/gloveharicut/blidx.jsp
I am not sure the vaccine is useful or not. CEO have better answer.
Do you have to wear GLOVES to give a vaccine shot?
I am holding my GLOVES. I will only sell when ASP come down but not stock price come down.
I buy vaccine logistic by using the GLOVEs profit as hedging to vaccine news.
- I am buying more FREIGHT after I read Group MD Chew Chong Keat interview
- How to distribute the ultra-cold vaccine? I am allocating my GLOVE profit to TASCO Cold Chain to hedge vaccine news
- How to distribute the ultra-cold vaccine? I am allocating my GLOVE profit to FREIGHT to hedge vaccine news
- KGB's dry ice plant to flourish from Pfizer's vaccine success?
I am reproducing The Edge article to my blog.
This post don't have any value added content.
Compile here for my own record.
Please skip if you don't like it.
https://www.theedgemarkets.com/article/no-yearend-party-glove-bulls
No year-end party for glove bulls
KUALA LUMPUR (Dec 29): As Covid-19 vaccines gain momentum, glove maker shares may find themselves difficult to cheer at year-end.
Although most of the glove makers' share prices have fallen at least one third from their peaks, some of them are set to post record earnings, but the selling pressure remained in the glove sector.
Glove makers continued to dominate the list of top losers today.
At the noon break, Hartalega Holdings Bhd fell 46 sen or 3.69% to RM12, making it the second top loser on the bourse. If compared with its recent peak of RM20.50 on Aug 3, the stock has slumped 41.46%.
Supermax Corp Bhd, which was the fourth top loser, dwindled 30 sen or 4.69% to RM6.09. The stock has fallen 48.78% from its recent peak of RM11.89 on Aug 6.
Top Glove Corp Bhd, which was also among the top losers, slipped 17 sen or 2.72% to RM6.09. It has also lost 36.56% from its recent peak of RM9.60 on Oct 19. The world largest glove maker’s market capitalisation has also fallen to RM49.94 billion, a far cry from its RM78.73 billion apex.
Kossan Rubber Industries Bhd, among the top losers, shed 10 sen or 2.08% to RM4.70. If compared with its recent peak of RM9.59 on Aug 6, the counter has declined 50.99%.
Comfort Gloves Bhd, also among the top losers, tumbled 12 sen or 3.85% to RM3. The counter has lost 55.62% from its recent peak of RM6.76 on Aug 3.
Since there are only two days until the last trading day of 2020, fund managers and research heads interviewed by theedgemarkets.com opined that glove counters are unlikely to see a sudden recovery in share price from the recent weakness.
Fortress Capital Asset Management chief executive officer Thomas Yong said market sentiment has turned bearish on glove stocks since the announcement of vaccine availability despite the strong earnings performance achieved by the glove companies so far.
“Although the valuations of glove companies have come down significantly from a very high level in the early part of this year, the news on the rollout of vaccines will continue to weigh on the market sentiment surrounding glove stocks.
“A strong rebound in share price is unlikely but there might be opportunity when the valuation of glove stocks gradually normalise to their historical average,” said Yong
He also noted it is widely known in the market that glove companies are going to exceed their highest profit record in 2021 on a full-year basis.
“The question now is not about how much profit they can make in 2021, but how much growth is left. The market is looking past the profit of glove companies in 2021, and its focus is now on any potential reversion in glove average selling price, which might come in as early as the second half of 2021.
“The key question now lies on when will the balance of demand and supply of gloves be restored, where it is going to trigger a downtrend in glove prices,” he added.
Rakuten Trade Sdn Bhd head of research Kenny Yee also said the party has ended for the glove sector as funds will flow to others for a recovery play.
“I would rather be on the sidelines as the glove counters are consolidating until they steadied at a trading range,” he said.
Yee also noted astronomical earnings for glove companies are temporary; thus he believes glove share prices have already priced in such events.
Agreeing the party is over for glove makers, JF Apex research head Lee Chung Cheng said the opportunity for glove makers is getting slimmer as Covid-19 vaccines are gaining momentum.
Even though the glove makers' share prices have fallen significantly, he believes the sentiment for glove makers remained weak.
“Even if you see there is a value for glove makers, you will still want to wait for a while. Funds are profit taking, you don’t know how low it can go,” he said.
Lee also opined that the stellar results for glove makers have been factored into the share price.
“Investors are looking forward in the second half of next year, when all the new entrants come in, will the positive momentum can be sustained?” he quipped.
Areca Capital Sdn Bhd CEO Danny Wong also noted glove makers' share prices are unlikely to return to their peaks as the sentiment (the development of vaccine) is against the glove makers.
However, fundamentally he still likes glove stocks.
“If they can achieve their returns, they can show some kind of sustainable earnings, I think the glove makers are quite cheap at this moment,” Wong said, adding that he would still trade glove stocks.
He also noted that it is worth looking at glove makers for potential return either from dividends or from distribution (such as treasury shares or bonus issue), because of their bumper earnings next year.
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Discussions
1 person likes this. Showing 19 of 19 comments
notice all these so call expert fund managers talk about perception only...and not companies making real profits.
what does that tell u? they are big time gamblers too...so obvious
looks like they also dun like real earnings companies...only ficticious or future may make profits companies....cilaka ppl
2020-12-29 15:46
kawan kawan please submit your stock pick with GLOVEs to show the world the power of GLOVEs https://klse.i3investor.com/blogs/stock_pick_2021/2020-12-25-story-h1538374211-Stock_Pick_Contest_Year_2021_How_it_works_PLEASE_READ_THIS_POST_SUBMIT_.jsp
2020-12-29 15:53
Everyone wants to buy cheap. So you have to make your own judgement. Glove huge profit.
2020-12-29 16:00
Unless gloves switch their manufacturing to oversize condoms, i don't see any upside going forward!
2020-12-29 16:05
gloveharicut kawan kawan please submit your stock pick with GLOVEs to show the world the power of GLOVEs https://klse.i3investor.com/blogs/stock_pick_2021/2020-12-25-story-h15...
29/12/2020 3:53 PM
Like this can help to push up the prices of glove co ah???
U guys are really crazy
2020-12-29 16:38
Total Vaccine Doses in 2021: 9.7 - 11.7 billion (as at 28 Dec 20)
- Pfizer-BioNTech: 1.3 billion doses
- Moderna: 500 million - 1 billion doses
- AstraZeneca: 3 - 4.5 billion doses
- Novavax (1.3bil); Curevac (~400mil); J&J (~1bil)
- Gamaleya Institute Sputnik V (~1.2 bil doses)
- China - Sinopharm (2; ~1bil); Sinovac; Cansino
Note: this has not included other vaccines currently under development or the China vaccines which have the potential to be scaled up considerably in a short time
The irrefutable truth is...
The COVID-19 pandemic is over
Mankind has won
Above all the human race shall always prevail
Sincerely,
EMSVSI
2020-12-29 17:11
Most Investment Bankers and Mutual Funds sell their holdings during year end for their investments bookkeeping rebalancing purposes and as most of them hold gloves stocks, their selloff will inadvertently result in the drop of prices.
They will buy back on the first trading day in January 2021 and gloves share prices will rebound. Take a cue from such practice which has been on-going for years and do set your entry and exit prices. TAYOR and good luck.
2020-12-29 19:09
EKOVEST 3 MONTH AGO 0.52 NOW 0.53 CAN BUY? I CANT FIND ANY CHEAP STOCK NOW. PLEASE GUIDE ME.
2020-12-30 10:52
Philip ( buy what you understand)
As you will quickly notice, the share price will drop far far faster than the asp price coming down. If you are looking at asp price as your indicator then you will be shortly disappointed in your stock investment.
Your indicators should have been
1) new glove production lines coming into market.
2) efficacy and distribution of vaccine.
>>>>>>>
Do you have to wear GLOVES to give a vaccine shot?
I am holding my GLOVES. I will only sell when ASP come down but not stock price come down.
2020-12-31 06:09
SINGAPORE DOCTOR ALSO NO USE GLOVE WHEN GIVE INJECTION TO NURSE , WHY THIS HAPPENED? https://www.channelnewsasia.com/news/singapore/covid-19-first-vaccinations-ncid-healthcare-workers-pfizer-13864346
2020-12-31 10:51
KUALA LUMPUR (Dec 31): Although the battle with Covid-19 pandemic is still ongoing, Bursa Malaysia certainly has good reasons to celebrate the year 2020.
Firstly, the local market has outperformed its neighbouring bourses with its benchmark index ending the year in the positive zone, except for Vietnam. The FBM KLCI gained 3.5% year-to-date (YTD) to reach 1,644.41 points on Dec 30, while Vietnam's VNINDEX has climbed 14.2% YTD. It is worth noting that the FBM KLCI had declined for two consecutive years since 2017.
In contrast, Singapore's Straits Times Index dropped 11% YTD, followed by the Philippines' PSE Composite Index -8.6%, Thailand's SET Index -8.3%, and Indonesia's Jakarta Composite Index -5.1%.Share prices went higher in the broader market, as reflected by the bigger gains on Bursa Malaysia Small Cap Index, which went up 10.09%, while FTSE Bursa Malaysia ACE Index, which exceeded the 10,000 mark, has soared 103.5% YTD.
The market capitalisation of all listed entities has ballooned as much as RM104.74 billion against end-2019's, according to Bloomberg data.Secondly, the stock exchange should also cheer for the return of retail investors who have been absent for over a decade, if not longer. Given the surge in retail interest, the exchange's daily trading volume ballooned to an all-time high of 27.8 billion in August compared with last year's high of 2.51 billion shares.
Bursa's total trading volume swelled to 1.81 trillion as at Dec 30, nearly triple of 2019's annual volume of 613.59 billion. This speaks well for Bursa Malaysia Bhd's earnings.
2020-12-31 17:29
The Edge is taking a closer look at this year's top winners and top losers, which have been grouped according to market capitalisation.
Super big cap (market cap of more than RM10 billion)
There are 37 companies in this category. Supermax Corp Bhd and Kossan Rubber Industries Bhd were not in this category last year. Likewise, so was not the newly listed Mr DIY Group (M) Bhd.
The top four best performers are the big four rubber glove makers, namely Supermax (+802% YTD), Top Glove Corp Bhd (+291% YTD), Kossan (+130% YTD) and Hartalega Holdings Bhd (+120% YTD). They would have recorded higher gains this year if it were not for the news about the roll-out of Covid-19 vaccines most recently.
They have collectively gained RM79.42 billion worth of market cap, which is equivalent to 76% of the total market cap increases from all the stocks listed on Bursa Malaysia.
Mr DIY shot up some 98% in less than two months against its initial public offering price of RM1.60 to close at RM3.17. Press Metal Aluminium Holdings Bhd is another star performer with 81.7% gain to close at RM8.50 amid the soaring aluminium price in the international metal market.
Among the banks, Public Bank Bhd, which recently proposed a four-for-one bonus issue, has recouped all its losses in the first quarter of 2020. The banking stock increased 6.4% YTD to close at RM20.70. Public Bank's comeback is noteworthy especially since it fell to the low of RM12.66 this year in March.
The other bank that recorded gains this year was Hong Leong Bank Bhd (+7.4%).
Top losers were companies that were affected by the lockdown and cross-border travel restrictions due to Covid-19, particularly tourism-related firms. Genting Bhd fell by 25% YTD and Genting Malaysia Bhd (-17.3%).
National utility giant Tenaga Nasional Bhd was the second top laggard, which was down by 21% amid concerns over rising unpaid electricity bills and slowdown in power consumption.
2020-12-31 17:29
Big cap (RM 1 billion to RM10 billion)
For the big cap space, office furniture manufacturer Euro Holdings Bhd leads the gainers and is up 5,064% YTD to close at RM2.88 from a mere 5.5 sen. This company, whose share price had never gone past 15 sen since its IPO in 2005 up until end-March this year, saw the emergence of a new largest shareholder SPA Furniture (M) Sdn Bhd in February this year.
This is followed by rubber glove makers Careplus Group Bhd (+1,213%), Rubberex Corp (M) Bhd (+672%) and Comfort Gloves Bhd (+282%).
In line with the technology sector's rally, semiconductor-related firm UWC Bhd grew by 365% to close at RM9.90, while Greatech Technology Bhd rose 278% and JF Technology Bhd was up 216%.
Other semiconductor-related firms that have chalked up handsome gains include Unisem (M) Bhd (+178%), Malaysian Pacific Industries Bhd (+116%), Mi Technovation Bhd (+107%), ViTrox Corp Bhd (+87%), Pentamaster Corp Bhd (+66%), and Inari Amertron Bhd (+63%).
Pharmaceutical companies Duopharma Biotech Bhd and Pharmaniaga Bhd also saw stellar growth of 143% and 144% respectively.
Oil and gas (O&G) counters dominate the top losers list, namely Velesto Energy Bhd (-63.2%), Sapura Energy Bhd (-53.7%), and Dayang Enterprise Holdings Bhd (-52.2%).
This is in contrast with crude oil refiners Hengyuan Refining Co Bhd which climbed 33.6% and Petron Malaysia Refining and Marketing Bhd, which is up 2.19%.
2020-12-31 17:30
Mid cap (RM500 million to RM1 billion)
In 2020, companies' share prices could just soar by announcing their plans to hop on the vaccine distribution bandwagon. Share prices of 15 companies under this segment have more than doubled.
Other notable counters are GETS Global Bhd (+1,181% YTD), a loss-making bus operator which has ventured into the rubber glove business, and Hong Seng Consolidated Bhd (+692% YTD), also a new entrant to the rubber glove manufacturing industry. Meanwhile, HLT Global Bhd, which specialises in producing glove dipping lines for manufacturers, grew by 522%.
AT Systematization Bhd, which is likely the most traded stock of 2020 with daily trading volume exceeding one billion shares, gained 363%, has also thrown its hat into the rubber glove ring.
Top losers in this category are also O&G firms, namely Malaysia Marine and Heavy Engineering Holdings Bhd (-48%) and KNM Group Bhd (-44%).
2020-12-31 17:30
Small cap (below RM500 million)
A similar trend was spotted among the small caps. INIX Technologies Holdings Bhd (+500% YTD), which is in the midst of setting up a rubber glove manufacturing plant, is the top gainer in this category.
Solution Group Bhd, which has announced vaccine-related ventures, tops the list and grew by 1,132% YTD. Likewise, Bintai Kinden Corp Bhd and Ho Wah Genting Bhd grew by 435% and 495% respectively.
Other notable companies that have announced healthcare-related ventures are MQ Technology Bhd (+460%), which has announced its venture into the manufacturing of personal protective equipment, and LKL International Bhd (+567%), which has been awarded a glove supply contract by a China-based company.
Vivocom Intl Holdings Bhd, which intends to acquire property development assets from its major shareholder, shot up by 463%.
2020-12-31 17:31
Rubber glove makers, semiconductor-related counters and vaccine distributors — these are the main theme plays in 2020.
2020-12-31 17:31
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Good bye 2020. Good buy 2021!
2020-12-29 15:30