Koon Yew Yin's Blog
What pushes the share price up? Koon Yew Yin
Koon Yew Yin
Publish date: Fri, 18 Dec 2020, 03:55 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Among all the criteria such as dividend yield, cash flow, bank balance, net tangible assets (NTA), etc, the most powerful catalyst to push up the share price is profit growth prospect. Investors should not buy any stock that cannot report increasing profit. For example, currently almost all the property companies cannot report increasing profit because there is so much of oversupply of properties. There are so much of unsold properties in every town and city, although the company’s share prices are selling below their NTA.
Currently the Covid 19 pandemic is affecting almost all the listed companies except medical gloves stocks and medical products for the virus prevention. As a result, all the glove makers can easily increase their selling prices to make more and more profit.
Among all the glove stocks, Supermax has the best profit growth rate. Its price chart shows that it has gone up from 70 sen on 23rd March to close at Rm 6.90 yesterday. Supermax share price has increased nearly 10 times in the last 9 months due to surge in demand for gloves. Its EPS for the quarter ending September was 30.58 sen. Its previous quarter EPS was only 15.29 sen. Its profit has increased by 100%. Its profit for the next quarter ending December should be another new record high. The company will likely make the announcement in Mid-January.
Top Glove price chart shows that it has gone up from Rm 2.04 on 23rd March to close at Rm 6.70 yesterday. It has gone up 3.3 times in the last 9 months. During the same period, Supermax has gone up 10 times. The only reason is that Supermax has been reporting better profit growth rate than Top Glove.
The Supermax price chart below shows that on 30th November, it started to drop from Rm 9.10 to close at Rm 6.90 yesterday. It dropped Rm 2.20 or 24% within 2 weeks while the demand for gloves is still surging. The chart shows that it is on a down trend. The question is whether it will continue to drop or not. I wish I have a crystal ball to be able to tell the future.
Why investors are selling?
UK and US are starting to inject vaccines to their citizens to prevent the spread of the coronavirus. Many investors are selling because they believe the vaccine will reduce the demand for glove.
Another reason could be the big investors are purposely pushing down the price so that they can buy back at cheaper prices.
Serious long-term investors should know the current down trend is only temporary.
As long as the pandemic is not completely under control, the demand for gloves will continue to exceed supply and all the glove makers will continue to increase their selling prices to make more and more profit which should be reflected on their share prices.
I would like to suggest that if you did not sell earlier at higher prices, you should not sell now because I believe the price is very near its rock bottom. Moreover, Supermax will announce its next quarter result soon.
My research shows that all the stocks in the other sectors cannot report better profit growth rate than glove stocks.
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Discussions
Be the first to like this. Showing 26 of 26 comments
Well say Calvin Wtk good rsawit good tdm good inck good PUNCAK good ioi good sime good genp good .
Now plantation counter good after steel and construction
Thanks Calvin sharing good point on plantation but property counter still not yet up so can try investment in good property like Glomac mkland Asiapac PMCORP Tropicana MAHSING ecow Ampro Ken Mct .
Try do some research on property inside got gold .
Glomac and Tropicana are my favourite then ecow and PMCORP are trade at cheap prices. KEN ALSO NOT BAD
2020-12-18 16:29
HIDE IN THE TOTAL SAFETY OF PALM OIL STOCKS NOW! NOW!! NOW!!! Calvin Tan Research
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-12-18-story-h1538281155-HIDE_IN_THE_TOTAL_SAFETY_OF_PALM_OIL_STOCKS_NOW_NOW_NOW_Calvin_Tan_Rese.jsp
2020-12-18 16:34
what push share price up?
ANSWER: SYNDICATE
topglove, harta, kossan, supermax need to hire syndicate to push up their shares. it's the only way
2020-12-18 17:01
All big foreign funds are on year end break, they have disposed all their holding and only will be back second week of January 2021. You guys, old fox, and stupid arrogant tansri can keep shouting but I can tell you it won't work !!! As I said many many times few months back, the boss has to to change his arrogant ego, and look into CSR, ESG more seriously, if not he has to face the bad karma. To make matter worst , whistle blower got sacked because taking photo.......I got the feeling TG will be bar from us market for a period until US is satisfied on the improvement of ESG issue.
2020-12-18 18:17
Maybe the first 5 goreng articles from KYY will push the share price up. After that be careful the more goreng articles the more the share price drop.
2020-12-18 18:25
Correction: Stock like ATS an exception to KYY stock selection rule then after 3 goreng articles must lari kuat kuat.
2020-12-18 19:26
I read the 1st paragraph with keen interest.
Then when the 2nd paragraph comes, it feels oddly familiar KYY.
I stopped reading at the 3rd paragraph.
2020-12-18 20:22
Because conman could make you rich one day and a bankrupt the next few days...lol
2020-12-18 21:03
Shouldn't sell since the quarter result gonna announce soon?? History tells time again & again & again the price will slump whenever result is out regardless whether it's record results.
Why take risk. Take cover first.
2020-12-18 23:34
Conman also have to face their KARMA. Writing day and night won't help if the heart is evil. For money, they will sell their family and tell lies without blinking. One day he will justify a thousand reason why you should buy, and suddenly the next day, everything about the company is bad, of course after he has sold. These are the traits of conman.
2020-12-19 00:04
Don't trust. Glove rush has already passed. KYY posted so many articles regarding Supermx recently because glove counters are on downtrend, so he is trying to push up the share price to allow him to exit. Look at what happened to Topglov despite the ultra profit reported in latest QR. Investors already priced in the outstanding result of glove companies, therefore there are no longer any new positive factors to push up share price.
If you're smart, think forward and invest in Covid recovery counters. Just move on from glove already.
2020-12-19 00:10
FBMKLCI window dressing almost done, now is the show time for Glove counters which very good in profitable
2020-12-19 02:41
I strongly feel that both super n tg are going to break 6 and will approach 5in near future,never trying to catch the falling knife
2020-12-19 05:51
Looks at epf,chase up glove stocks now had to trim down like many retailers,glove stocks has been diluted many times every time there was bonus issues yet it is already a few hundreds or even thousands times up from the beginnings, isn’t it crazy to believe it can continue to go up,while blue chip like BAT is trading at around 80% discount and pessimistic after the budget 2021,and many lope holes being addressing and will come into effect 2021...ones is already up few hundred times vs another already down more than 80 times,your choice
2020-12-19 06:04
Bat used to be foreigners favourite,while glove stocks are locally funds goreng,now the cigarettes market conditions started to change and the foreign funds may revisit again ones they get notice
2020-12-19 06:10
Be aware of the lifting of short selling it could cause a heavy effect on glove stocks for many had jumped on the wagon during the talk up and now must closely monitor the lifting day coming
2020-12-19 06:19
My research shows that all the stocks in the other sectors cannot report better profit growth rate than glove stocks. <---- LOL.. are you sure all the stocks cannot report better profit growth than glove.... ask FINTEC, bro
2020-12-19 11:54
Glove companies would have investors instead of punters had KYY not flip-flop so quickly with his views on specific glove companies.
2020-12-19 13:17
Better shut up la uncle... your keen interest writing about Supermax only show you're getting burned by your recently bought supermax shares at peak.
Tryin hard meh?
2020-12-19 18:56
you have freedom to say whatever you want to say,
but we investors must owning we own judgement.
2020-12-20 00:02
What pushes oil up . You look uncle faster push it up stop distributing to people
2020-12-20 14:21
"Serious long-term investors should know the current down trend is only temporary."
Uncle should understand that this pandemic situation is also temporary. What will make the difference is how these glove company like supermax will use their cash.
If your buy back shares then it does not add much value. However, if the cash can be used to diversify into a new business and fast track the expansion this would add value for the company through diversification.
2020-12-21 09:23
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CS Tan
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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....
calvintaneng
Real push now is from Strong Cpo prices for all palm oil stocks
During 1997/8 asian financial crisis
public bank fell to 80 sen
Maybank fell to Rm2.50
Nestle fell to Rm11.80
Everything collapsed
But palm oil went up
Same for Subprime Crisis of 2007/8
Market collapsed but Cpo rose to Rm4000
So palm oil did very well again
Now listen Cpo already crossed Rm3500
production cost only Rm1700
So palm oil will be strongly supported by earnings and more earnings
While glove like Supermax I bought at only Rm1.73 up a whopping 1,000% already palm oil is the only asset class not yet moved due to skepticism
John Templeton says
Bull market is born in pessimism
Grows in skepticism
Matures in optimism
Dies in euphoria
While gloves now reached optimism to euphoria
palm oil still face skepticism
Under such stark differences
Best is to sell glove on rallies and plough into Palm oil shares while price still reasonable
Final decision is yours
Calvin
2020-12-18 16:17