Misai's World of Investing
Glove Stocks on Dead-Cat Bounce
abang_misai
Publish date: Thu, 04 Mar 2021, 09:13 PM
Glove stocks rebounded yesterday the 3/3/2021 was all but a temporary and short-lived recovery from a prolonged decline that is likely to be followed by the continuation of the downtrend.
Frequently, such downtrends are interrupted by brief periods of recovery during which prices temporarily rise.
The name "dead cat bounce" is based on the notion that even a dead cat will bounce if it falls far enough and fast enough. It is an example of a sucker's rally.
A dead cat bounce is a price pattern used by technical analysts. It is considered a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. It becomes a dead cat bounce (and not a reversal) after the price drops below its prior low.
Frequently, downtrends are interrupted by brief periods of recovery, or small rallies, when prices temporarily rise. This can be a result of traders or investors closing out short positions or buying on the assumption that the security has reached a bottom.
A dead cat bounce is a price pattern that is usually recognized in hindsight. Analysts may attempt to predict that the recovery will be only temporary by using certain TA and FA tools. A dead cat bounce can be seen in the broader economy, such as during the depths of a recession, or it can be seen in the price of an individual stock or group of stocks.
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Discussions
2 people like this. Showing 15 of 15 comments
Additionally, according to data from CGS-CIMB, Supermax tops the list of net buys by foreign investors for the month of February, followed by Hartalega and Kossan in positions 2 and 3. Top Glove has been the 8th largest net buy of foreign investors in February.
Sellers
Local institutions were the largest net seller of Top Glove and Supermax stock in recent weeks. After disposing of RM101.7 million worth of Supermax stock and RM69.9 million worth of Top Glove stock in the week of 15-19 February, the sell off continued and intensified. In the week of 22-26 February, local institutions sold RM204.9 million worth of Top Glove stock, and RM197.1 million worth of Supermax stock. Unsurprisingly these two stocks topped the net sell list of this group of investors.
Additionally, we recently learned that a popular investor has also disposed of his position in Supermax (source).
Conclusion
There has been a significant reshuffling of the shareholder base in the four big glove manufacturers. EPF, foreign funds, and insiders have been adding glovemakers to their portfolios. At the same time local institutional investors have been disposing due to reasons that might have to do with things unassociated with the business prospects of the companies. The next weeks will show if this was indeed the case or if local institutions have truly lost faith in gloves, leaving their international counterparts the opportunity to collect.
2021-03-04 21:51
Glove ASPs are likely to remain high this year - The cat will resurrected and will be bouncing higher & higher.
---------------------------------------------
However, the ASP correction is expected to be gradual as the vaccination programmes will take some time.
Meanwhile, another bank-backed research analyst says although glove stocks’ valuations are deemed very attractive now, investors are looking ahead to potential earnings post-pandemic.
At this juncture, we can’t be sure what kind of level ASPs will be at in 2022 or 2023.
The research analyst surmised that some of the recovery in glove stock prices, might be due to their cheap valuations.
Perhaps, investors are also anticipating another solid quarter from Top Glove.
2021-03-06 12:14
Old fox KYY was forced out of gloves. Still a lot of i3 famous like Charles and Probability still see glove values. I still keep my free glove shares which are about 10% of my portfolio for dividends and add more Super and Tg this monday when it dropped to this ridiculous valuation, eg Super 3 years PAT = RM 10b almost equal to its mkt cap of RM 10b at RM 4.1.
Super at RM 22 and TG at RM 29 (before bonus issues) were overvalued as such i sold most of it in stages before bonus issue. At this price, hehe.....
2021-03-06 13:06
Bounce lu eh mother, tin kosong sharing non substantial and zero constructive infos.
2021-03-06 13:55
Supermax: Trading at Forward PE of 3.3 While Sitting on RM3.56 Billion Cash Pile
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Author: Ben Tan | Publish date: Tue, 2 Mar 2021,
Supermax is describes the extent of market irrationality right now.
At midday market close, the stock of Supermax was trading at RM4.22. Ten analysts cover the stock (and all ten have "BUY" calls on it), and they have an estimated consensus PAT for FY21 at RM4.15 billion, and for FY22 at RM2.44 billion. Both of these estimates are at relatively low standard deviations. In fact, excluding KAF's bearish estimates, the standard deviation drops by about 30%. KAF have given a PAT estimate for FY21 at RM3.542 billion, which means that they expect the company will earn a total of RM1.642 billion over the next two quarters.
The company has already declared PAT of approximately 1.9 billion for the first half of FY21, so the remainder is RM2.25 billion. Assuming even distribution of profit in FY22, the first two quarters of that financial year should result in total PAT of RM1.22. Thus, the total estimated PAT for the next one year should be RM3.47 billion, or EPS = RM1.275.
This means that the 1-year forward PE at present is 3.3.
2021-03-06 15:09
Nonsense. How you know is reshuffling? If local institution saw a great future growth prospect like amazon and google. Who dare to sell out?
2021-03-06 16:00
Local institutions are big gamblers, they don't know much about investing long term- that explains the short selling and inssuance of Call Warrants.
Stockisnotfun Nonsense. How you know is reshuffling? If local institution saw a great future growth prospect like amazon and google. Who dare to sell out?
06/03/2021 4:00 PM
2021-03-06 16:07
local stock market klse is heavily influenced by the call warrants
becoz of this, they are gamblers enuf said.
klse will never reach 2000 lol
how would u like it if a multi billion dollar company stock prices is influenced only by a few local investment banks?
and guess what? lots of ppl already knows this. the power of social media hehe
2021-03-06 16:12
Speedy variants power virus surge sweeping Europe
March 6, 2021
https://www.thehour.com/news/article/Speedy-variants-power-virus-surge-sweeping-Europe-16005367.php
“This is the demonstration that the virus has a sort of intelligence, even if it is a single-cell organism. We can put up all the barriers in the world and imagine that they work, but in the end, it adapts and penetrates them,’’ lamented Bollate Mayor Francesco Vassallo.
Bollate was the first city in Lombardy, the northern region that has been the epicenter in each of Italy’s three surges, to be sealed off from neighbors because of mutant versions that the World Health Organization says are now powering another uptick in infections across Europe. The variants also include versions first identified in South Africa and Brazil.
Europe recorded 1 million new COVID-19 cases last week, an increase of 9% from the previous week and a reversal that ended a six-week decline, WHO said Thursday.
2021-03-06 17:35
Latest news on the Pandemic-
Mike Ryan, WHO's top emergency expert.
------------------------------------------
"Countries are going to lurch back into third and fourth surges if we're not careful."
On a global level, COVID-19 case numbers reversed a six-week downwards trend last week despite the delivery of millions of doses of vaccines in recent weeks, WHO data showed.
https://www.channelnewsasia.com/news/world/covid-19-who-warn-against-relaxing-pandemic-fight-worries-brazil-14345024
2021-03-06 20:56
Don't just empty talk, walk your talk to sapu all put warrants, why put warrants vol so low while so many of you so confident it will continue downtrend?
2021-03-06 21:20
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The SuperMx Rebound
Author: CalculatingAbbey | Latest post: Thu, 4 Mar 2021, 8:14 PM
I am a mid-long term investor.
My record holding consist of stocks that has earned me a living in SGX, HKX, and TSE.
This blog are dedicated to the writings of all glove related purchases in the Malaysia Stock market.
Disclaimer: This blog does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service.
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My Diamond Pick: SuperMax.
Author: CalculatingAbbey | Publish date: Thu, 4 Mar 2021, 8:14 PM
Based on sound practices of technicals for many years.
Under the traits of DEMA, TEMA, ADX, and other technical readings, a sound rebound to 5.340 - 5.50 is imminent.
In terms of the company's growth, performance, company's management structure, ROE and the likes of its revenue = The health of its intrinsic value is fundamentally strong to be ignored.
My quantification of both the fundamental and technical? Strong buy.
TP: 5.340 - 5.50
Long Term: 6.00.
2021-03-04 21:49