Recently all the price charts of glove stocks are showing down trend because there are too many glove stocks in the market due to right issues, share placements and bonus shares. As a result, all the glove stocks are selling at very low PE.
I will only sell all my glove stocks when the Covid 19 pandemic is completely under control and the demand for medical gloves is reduced. Currently the number of new cases in almost every country in the world is still increasing at a faster rate, especially in the US.
Currently US has a total of 14.983 million Covid 19 cases, 8.788 million recovered and 287,825 deaths. The daily number of new cases is still rising as shown on the chart below.
US had more than 4 million Covid 19 new cases in November, doubling the record set in October. US has the most Covid 19 cases in the world. No country can beat the record set by US. Due to the mass gathering to celebrate Thanks Giving, a new record of more than 4 million Covid 19 cases will be set in December.
Safety guidelines: At a minimum, gloves must be used where there is reasonable anticipation of employee hand contact with blood, other potentially infectious material, mucous membranes, or non-intact skin; when performing vascular access procedures; or when handling or touching contaminated surfaces or items.
All medical staff must wear glove to inject vaccines.
Currently due the Covid 19 pandemic there is already a shortage of medical glove.
Additional glove will be required when UK and US start to vaccinate their people.
According to CDC, central disease control, to prevent the spread of the coronavirus at least 75% of the population must be vaccinated. It will take a long time to produce enough of vaccines to vaccinate so many people. Moreover, it will also take a long time to produce so much of medical gloves to meet the demand.
After careful research I found the following comparison among all the glove stocks.
Based on the latest closing share prices of all the glove stocks, Supermax is the cheapest in terms of PE ratio. Moreover, it has the best profit growth rate. Its latest quarterly profit is double the previous quarter.
Even if I assume the selling price for gloves is not increased for the whole financial year, all the glove stocks are selling at very low PE as shown on the table below:
Name Price Quarter EPS 4XEPS PE
Supermax Rm 8.29 Sept 30.58 Rm 1.22 6.8
CarePlus Rm 2.60 Sept 8.00 32 sen 8.1
Comfort Rm 3.73 Oct 10.30 41.3 sen 9.0
Top Glove Rm 6.65 Aug 15.95 63.8 sen 10.4
Kossan Rm 6.10 Sept 13.6 54.4 sen 11.2
Rubberex Rm 1.73 Sept 4.96 19.8 sen 18.8
Hartalega Rm 14.50 Sept 15.95 63.8 sen 22.7
Instead of selling my glove stocks, I should consider to buy more glove stocks, especially Supermax.
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Someone has been using my name to promote initial public offer (IPO) shares. I just received this last night.
Did you watch the Premier League matches last weekend? 2000 fans are allowed back into stadium! What does that mean?
2020-12-07 10:28
It means this guy writing this piece is in dreamland. Savvy and institutional funds buy or sell way ahead. All this bullshit being repeated is public knowledge. Only newbies and the gullible will get trapped by this out of touch analysis.
2020-12-07 10:40
Please sell your glove stocks. Learn from your experience when you hold Dayang for too long.
2020-12-07 10:53
this joker very smart ...slowly he will dump off when the price rebound...SMARTASS
2020-12-07 11:11
Gloves die hard fans, no more cure. Without foreign funds support as anchor shareholders, all mega gloves stocks price will go sideways...
2020-12-07 12:00
Just sold all my supermax just now based on kyy recommendation. He said buy, you sell... He said don't buy.... You buy more of course.
See you old man on the next pandemic..
2020-12-07 12:20
Despite demand outstripping supply and thus, rising ASPs, a low PE regime for gloves is likely here to stay. Considerations : voluminous share float, SWs, hiked costs (raw materials, accommodation upgrades, potential fines), disruption risks (infection, unplanned shutdowns) and increased player diversity.
2020-12-07 12:55
This time this old man don't recommend, instead putting numbers to influence ppl to buy what he bought.
poraaaahhhh.!
2020-12-07 13:40
this old man won't be exist for next pandemic. In fact he will be gone soon
2020-12-07 13:42
Even if I assume the selling price for gloves is not increased for the whole financial year, all the glove stocks are selling at very low PE as shown on the table below:
Name Price Quarter EPS 4XEPS PE
Supermax Rm 8.29 Sept 30.58 Rm 1.22 6.8
CarePlus Rm 2.60 Sept 8.00 32 sen 8.1
Comfort Rm 3.73 Oct 10.30 41.3 sen 9.0
Top Glove Rm 6.65 Aug 15.95 63.8 sen 10.4
Kossan Rm 6.10 Sept 13.6 54.4 sen 11.2
Rubberex Rm 1.73 Sept 4.96 19.8 sen 18.8
Hartalega Rm 14.50 Sept 15.95 63.8 sen 22.7
Instead of selling my glove stocks, I should consider to buy more glove stocks, especially Supermax.
Calvin comments:
I think SUPERMAX has already done very well with ASP
I bought Supermax at Rm1.73 & sold all above Rm18 (after bonus Rm9.00) for 1,000% gain
NOW I THINK KOSSAN STILL A GOOD BUY AT RM5.88
Kossan has the highest Quality
Clean room Surgical Gloves & faces masks
Faithful to its customers thru thick & thin
Kossan does not take short cut but build up its business solidly and professionally
Its Top shareholders are great names. Among them is Eastspring Investment Fund
There are many new glove entrants
BUT LOYAL HOSPPITALS, SURGEONS & DOCTORS WILL STILL STICK WITH KOSSAN FOR THE HIGHEST QUALITY
A Surgeon cannot risk his life using untested & unproven medical gloves out there
Like a brand name KOSSAN is well known for HIGH QUALITY & SAFETY
Nobody will buy cheap roadside medicine from pasar malam
So no surgeon will be gloves from new unknown glove wannabees
2020-12-07 14:48
People are in materials boom already
Steel, copper like tawin, sand like Ages, ytl and Hume industries for cement
Even Lynas up nearly 80% cause of materials price boom in rare earth
This uncle scammer still stuck in gloves
2020-12-07 15:18
Vaccine counters only for goreng. Nothing to be seen yet but people just goreng kaw2. Glove companies really made profits but .....
2020-12-07 17:14
ASP increased almost ten fold in a year and I wonder why you are using this crazy ASP to price glove stocks if you think covid will be history in 2022.
Although I dont know what ASP would be like in 2022 and onwards, but if ASP continued to stay high, I think many new glove makers would emerged all around the world given the hefty profit they stand to make out of it.
2020-12-07 17:26
Uncle KYY... i'm with you... i will only sell glove stock if only i have any....
2020-12-07 17:45
No more yesterday years . Gloves stock all already hit the past limit and now it is going to retreat with lesser and lesser buying support . Sooner or later , the big fat hen will turn into a skinny birdy .
2020-12-07 19:12
When busy with other counters, for example, Public Bank was as low as RM15, improved to RM19, within the days, 25% profit now.
If you have Millions, 25% profit is very big. True, the timing... the timing.
The investors may have overlooked the good target of returns. You can do without being overly loyal to certain products/companies/markets. Don't have to be well-known for supporting glove making alone already.
If you want 20% to 40% returns even within DEC month itself, surely there will some very well informed investors can suggest, you can see, can be from the Property/Banking/Plantation.
2020-12-07 19:20
I hope KYY give more in church.Last times i say rm 100 dinner per person.Now since in Covid-19, maybe rm 100 dinner and Angpow few hundred ringgit.If financial condition was right then.Me also give Angpow.Buy HSBC Hong Kong shares HKDollar43-44.TP above HKDollar 60(worst case scenario).After 60 any price can sell.
2020-12-07 19:41
This fella very sly, he will tell you to buy and then he will quietly sell out. What better way to escape by getting others to take your place. Then he will start shitting the very same companies he has been promoting after unloading his position. In fact, he has been doing it too often and yet his gullible followers still believe him. He's lucky the authorities have yet to investigate him for share manipulation. Only time will tell.
2020-12-07 19:42
Buy stocks with huge losses...not those with huge profitability and huge amount of shares...two fundamental requirements. You don't need to go to holland when you are in holland or you don't need to talk about holland when you are already a holland. When pandermic over the huge losses will become small losses vs huge profitability now become smaller profitability next time especially when shares got bloated to holland amount.
2020-12-07 21:29
Just like the steel stocks...they are showing smaller losses between recently and before (few months ago) that is why prices move up. Don't need huge profitability stocks but stocks that can show smaller losses with smaller capital in the future...2 fundamental non-holland requirements.
2020-12-07 21:34
Third non-holland requirement..it has to be cheaper than other quality comparable stocks. for example, glove is glove steel is steel non-comparable, but company quality is comparable, you can find the best run steel stock or best run in quality gambling stock or what...you don't have to find the best glove stock..see even maybank is going up very strong it is not a glove stock either, sostupid old fool taking, please excuse me.
2020-12-07 21:38
Just to let you know he has been selling supermax buying heng yuan...only fools underestimate uncle's marekt prowess
2020-12-08 03:42
We all are now being haunted by notion that stock market is 6-12 months ahead.
So many must be thinking, what is good in 1st quarter of 2022?
2020-12-08 10:55
No matter how, still the top four glove stock is the best. Palm also cannot fight
2020-12-08 16:33
Gloves demand to remain strong long after pandemic due to new SOPs https://murphyshockeylaw.net/uncategorized/329107/medical-gloves-market-set-to-witness-surge-in-demand-over-the-forecast-period-of-2020-2030/
2020-12-08 20:00
see whether can still go up tomorrow...there is always a tomorrow..do you still remember your tommorrow.
2020-12-08 22:44
us shares dropping now... you got balls you can push, but i rather don't balls because this is money matter not balls matter. hahaha!!!
2020-12-08 22:45
vaccine is the next gamer. Buy Sinopharm... still cheap. China virus need china vaccine
2020-12-09 22:47
kelvin61
This news written here is public knowledge. It's like an old record repeating itself. People get bored reading this same bullshit about no other business can make money except gloves stock. This guy is still in slumber.
2020-12-07 09:56