gloveharicut
JP Morgan tells clients GLOVEs ain’t needed during vaccinations
gloveharicut
Publish date: Wed, 13 Jan 2021, 03:01 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?
Citing the Centers for Disease Control and Prevention of the US, the National Health Service of the UK and the British Columbia Centre for Disease Control of Canada, the American bank said medical officers are not required to wear gloves while carrying out vaccination.
“Gloves are needed only if the healthcare workers are likely to come into contact with body fluids or if there is an open wound. Guidelines also state that even after wearing gloves, constant sanitisation between each patient would be the best way to minimise the risk of disease transmission,” it wrote.
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/glove-bear-jp-morgan-tells-clients-gloves-aint-needed-during-vaccinations
Glove bear JP Morgan tells clients gloves ain’t needed during vaccinations
KUALA LUMPUR (Jan 13): JP Morgan, which initiated coverage on the Malaysian rubber glove sector with "sell" calls in December, reminded investors that gloves are “not needed” while administering vaccinations.
“With vaccinations now underway, we expect demand for gloves to continue to ease,” wrote JP Morgan in a research note dated Jan 11.
This is in contrast to consensus expectation that the demand for disposable rubber gloves will not shrink sharply as frontliners still need them during vaccinations.
Citing the Centers for Disease Control and Prevention of the US, the National Health Service of the UK and the British Columbia Centre for Disease Control of Canada, the American bank said medical officers are not required to wear gloves while carrying out vaccination.
“Gloves are needed only if the healthcare workers are likely to come into contact with body fluids or if there is an open wound. Guidelines also state that even after wearing gloves, constant sanitisation between each patient would be the best way to minimise the risk of disease transmission,” it wrote.
Furthermore, JP Morgan stressed that glove prices may have peaked as testing efforts have started to plateau in most countries, especially developed ones. The bank pointed out that the current unprecedentedly strong demand was due mainly to high testing activities globally, particularly in the developed countries.
“Malaysian glove producers’ aggregate market capitalisation is 86% correlated to the US daily new testing data. The high 90% correlation was due to higher hospitalisation rate, driven by more testing, which in turn leads to higher demand for medical supplies and glove,” the bank commented.
The anticipated slower demand, JP Morgan said, implies limited upside to the average selling prices of the rubber glove.
In an earlier research note dated Jan 6, JP Morgan said it expects glove prices to reach a peak by the first half of 2021, with prices and profits to normalise thereafter.
The bank had compiled data of 18 countries, representing 17% of the world population, and found that besides India, Canada, Russia and the UK, the remaining countries it tracked are seeing a slow down in testing.
This limits the upside to glove prices, said JP Morgan, as “the more one tests, the more cases will be discovered which leads to hospitalisation and the need for medical supplies and gloves... Surges in testing created shortages which changed glove pricing from negotiated basis to spot”.
At the time, the average selling price stood at US$140 versus US$22 pre-Covid-19, which the bank said was driven by unsystematic buying.
Secured revenue growth is unsecured
Investors argue that the revenue growth is secured as most glove producers claim to have two or more years of order backlog, but JP Morgan begs to differ.
"It is crucial to understand order backlog and secured revenue. Orders are merely an agreement to buy a certain volume with prices determined or undecided. Buyers can walk away from it,” it wrote, noting that secured revenue is when customers have paid fully or partially for future delivery.
"As shown in Top Glove's quarterly results, we have indeed seen a sharp spike in deposits collected, from RM60 million a year ago to the latest quarter’s RM1 billion.
"However, the deposit paid is merely 4.7% of projected revenue for the financial year ending Aug 31, 2021 (FY21). It is not even equal to a month’s worth of glove sales," said JP Morgan.
JP Morgan maintained “underweight” calls on Top Glove Corp Bhd with target price (TP) at RM3.50, Hartalega Holdings Bhd (TP: RM8.50) and Kossan Rubber Industries Bhd (TP: RM3.80).
However, it cautions that the risks to the calls on the three glove producers include a second global wave of Covid-19 which could lift glove prices to new heights, unscheduled capacity shutdowns, a significant fall in input costs such as nitrile and natural rubber, a significant step-up in dividend payouts as well as a substantial degree of ringgit depreciation.
At noon break, Top Glove fell five sen to RM6.63, giving a market capitalisation of RM54.54 billion. Hartalega dropped 12 sen to RM13.02, with a market capitalisation of RM44.76 billion. Kossan fell five sen to RM4.51, with a market capitalisation of RM11.51 billion.
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GillianTan78 JP Morgan has large short position in Topglove and Hartalega, be careful of their poison words.
Topglove will be recording record profit is factual
JP Morgan fined US$250mil for mishandling client accounts is also factual
Topglove will be recording record profit is factual
JP Morgan fined US$250mil for mishandling client accounts is also factual
13/01/2021 3:04 PM
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Discussions
Be the first to like this. Showing 32 of 32 comments
This is very bad Msia fund also join venture with farang fund to tarnish Msia company
2021-01-13 17:57
Aren’t these people championing the welfare of the workers in glove factories, but giving questionable advice to their clients and publicize same is actually breaking the rice bowls of people who deserve outstretched hands and genuine concerns.
How do people with doubtful integrity get a license to operate?
2021-01-13 18:27
JPM in deep shit after they RSS on first week of Jan, and got countered by Tan Sri family and local fund.
2021-01-13 18:42
JP Morgan latest.report maintain hold at RM 6.50 for topglove. This is way above the RM 3.50 tgt price set in Dec 2020. Within a month, its tgt price goes up almost 100 %.
2021-01-13 20:42
Direct contact without PPE is either spreading the Covid-19 virus deliberately/intentionally (by the persons who carried out the vaccinations, who may carry the virus but without symptoms) or get infected by others/people who come for vaccinations through close contacts and endangering the front liners. I have never come across any IB which is so disgusting and so selfish just to utter nonsense and tell lies to suit themselves. Whoever write this piece of article/report(and the whole research team) should be reprimanded and sacked immediately and being held responsible for their sabotage against the MOH's SOP as well as curbing the spread of the pandemic, especially in Bolehland. Maybe they should be blacklisted forever for breaching their professional ethics. This is unbelievable to be written by an international IB with no integrity, credibility, moral and ethic. Shame on JPM, so disgusting, for using CDC's guidelines to camouflage their selfish deed, no wonder JPM is despised by all investors over the world.They owe the Bolehlanders and people all over the world who suffered from Covid an apology and they should compensate the loss of lives among the front liners and people who got cheated by their blatant and irresponsible reckless act.
2021-01-13 21:45
Who is JPmorgan to interfere in PPE...
JPMorgan short too much & not able to buy back low price....
2021-01-13 22:08
joke of the century, he is trying to tell ppl have direct contact with the patient that taking the vaccine?
2021-01-14 09:51
MANY SO CALLED SIFUs also telling ppl similar joke, hehehe.
ASK those SIFU BECOME SIFUT
2021-01-14 12:30
you see Topglov purposely remove their TP from their avg during the latest meeting with FM and analysts....hehehe. tht, itself, tell you something, wakakaka
2021-01-14 12:32
The eggs has been stolen, the goose tht lay the golden eggs hv been badly hammered.
Left behind bad shape n Health.
Like it or not, ti's is the truth!
2021-01-14 12:33
Paper suspect
Tg borrow the share to FM?
I think chance are bery low lah !
Not suit their earlier SBB objective lah !
2021-01-14 12:34
Just because can not beat the bandit
Now all has to be blend in and become the greater bandit ?
Forever stuck lo , that way!
Not worth it.
2021-01-14 12:36
Morgan, Goldman, n many others Financial Co r CROCS.
FINANCIAL CROCODILE.
THIS ANIMALS CAN'T RECOGNISE HUMANITY
THEY JUST KNOW THEIR PREYS
2021-01-14 12:36
Hahaha...
We are those prey also
But harder to be catched, we just upgraded our A.I. wing with high tactical smart weapon.
2021-01-14 12:40
Glove stocks are for gamblers, not investors.
The pandemic is a one time lottery for these companies.
In the long run, gloves demand will "shred away" like the wilted TULIP.
With that said, RM 4 is certainly a target to consider.
2021-01-14 12:45
U shud say
Those bet on stick market are all gamblers.
As they are bet on something not predictable.
Pandemic so what,
Global hygiene has changed from previously awareness to a higher usage if ppe protection. Why is that never mentioned ?
Besides, most glove s order has been visible till next 2 to 3 years.
Doesn't it long enough and more convincingly?
Let's ask a contractor, can they predict their biz after 18 months?
2021-01-14 12:51
Temporary needs are not permanent settings.
Those orders may have been made in haste when information was scarce.
As days turn into months and years, people become wise and know what is required and what is a wasteful procurement.
The fact is glove is not a diagnosis and never will be.
2021-01-14 13:07
Science has been debunking itself with many theories.
In short, nothing is concrete.
2021-01-14 20:26
in short ,
10 out of 10 company
keep banking-in ton & ton of cash .
That say something !
2021-01-14 21:21
i short
Glove company are eagerly & consistently
buying non stop for their own company share
2021-01-14 21:22
in short
Glove company are eagerly & consistently
buying non stop for their own company share
2021-01-14 21:22
in short ,
i hope i can buy more & more
with my limited cash & year end dividen
2021-01-14 21:23
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gloveharicut
[KIV JP Morgan's Opinion]
Citing the Centers for Disease Control and Prevention of the US, the National Health Service of the UK and the British Columbia Centre for Disease Control of Canada, the American bank said medical officers are not required to wear gloves while carrying out vaccination.
“Gloves are needed only if the healthcare workers are likely to come into contact with body fluids or if there is an open wound. Guidelines also state that even after wearing gloves, constant sanitisation between each patient would be the best way to minimise the risk of disease transmission,” it wrote.
https://klse.i3investor.com/blogs/gloveharicut/2021-01-13-story-h1539320897-JP_Morgan_tells_clients_GLOVEs_ain_t_needed_during_vaccinations.jsp
2021-01-13 15:08