Koon Yew Yin's Blog
Supermax: price trend reversal - Koon Yew Yin
Koon Yew Yin
Publish date: Wed, 23 Dec 2020, 09:13 AM
Koon Yew Yin
0 1,453
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
You can see from the Supermax share price chart that it dropped from Rm 9.18 on 1st December to close at Rm 6.79 on 14th December, a drop of 35% in 2 weeks. This is due to JP Morgan’s downgrade all the glove stocks. Unfortunately, many investors believe in JP Morgan and sold their holdings aggressively. It is so ridiculous to mislead investors.
The closing prices in the last 7 trading days were as follows:
14th Dec closed at Rm 6.79
15th Dec closed at Rm 6.79
16th Dec closed at Rm 7.11
!7th Dec closed at Rm 6.90
18th Dec closed at Rm 6.84
21st Dec closed at Rm 6.84
22nd Dec closed at Rm 7.05
The closing prices of the last 7 trading days indicate that there are many institutional investors supporting the share price despite JP Morgan’s downgrade all the glove stocks.
It looks like it has touched rock bottom and the worst is over. It should continue to go up higher and higher to reach the target prices set by all the Investment Banks as shown on the table below.
Although the price chart is still showing down trend, the fact that it did not continue to drop in the last 7 trading days, indicates that the price has touched rock bottom and it should go up higher and higher.
Chartists who follow charts strictly, who have no business sense and completely ignore the surge in demand for gloves due to the Covid 19 pandemic, would advise you to wait for Daily MACD buy signal to start buying. The 3 most important buy signal are:
1. Golden Cross Buy
2. Daily MACD Buy, both blue and red line crossed zero level.
3. Weekly MACD Buy
Chartists who have no business sense and follow the chart blindly cannot make much money.
But as a long-term serious investor, I am willing to take the risk to start buying in the last 2 days because I believe the price trend will soon reverse. I might have paid a few sen more but I know sooner or later it will rebound. You must not forget that it dropped 35% within 2 weeks.
The best time to buy at the cheapest price is at the pivoting point of a trend reversal.
Moreover, I believe all the target prices set by so many investment banks are easily achievable as shown on the table below.
Yesterday RHB Investment Bank predicted a target price of Rm 13.25.
I believe all the Investment Banks’ target price are easily achievable.
Supermax reported that it made EPS 30.59 sen in its 1st quarter ending September. It doubled its profit from its previous quarter. Even if you assumed the company cannot increase its selling price, its annual profit will be 4 X 30.58 = Rm 1.22. Based on PE 10, it should be Rm 12.2.
Supermax’s next quarter ending December should be another record high. It is most likely, the company will make the announcement in Mid-January, about 3 weeks’ time.
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Discussions
1 person likes this. Showing 44 of 44 comments
Why Structured Warrants are the death of investors !
The following is a list of CFD's ('Structured Warrants' as they are called ONLY in Malaysia)
In the Money:
https://imgur.com/cEk679H
Out of Money:
https://imgur.com/KVsaLxJ
It does'nt take a rocket scientist to figure that the Share price
of THE ASSET (The Underlying Share) will be close to if not less than
the Exercise Price of the Warrant at expiry.
Historical data clearly shows that 95-98% of the investors lose money
in CFD's. In fact. most issuer's around the world have this statement
as a Disclaimer. 2 Pages of a Macquaire Issue Document can be viewwed
in the following link. 2nd page contains all the DISCLAIMERS.
https://imgur.com/zPEaNub
2020-12-23 10:34
Smart chartists have business sense coupled with disciplined risk management to not just act on oft suicidal gut feel and potential unconfirmed reversals when trends go against them.
2020-12-23 11:43
Everyone trade precaution on glove but demand won't change. Glove will be deploy and more widely use beyond health care.
2020-12-23 15:09
Anyone has the link to the report?
"Yesterday RHB Investment Bank predicted a target price of Rm 13.25."
2020-12-23 17:35
wound is too deep. why rub salts on the deep cut?
Posted by Sslee > Dec 23, 2020 12:58 PM | Report Abuse
The following nomination is for the Golden Turkey award of the Year:
1. Koon Yew Yin: Dayang a great buying opportunity.
Publish date: Sat, 11 Jan 2020, 6:50 PM
2020-12-23 17:59
Nowadays uncle smart d. He wont hold one. Buy cheap sell high within few days enuf for him to earn gao gao d
2020-12-23 18:03
If nobody buys, then sharks cannot escape. And when sharks got trapped by bilises here, how sharks gonna go to push up other stocks, right?
Buy...buy.....buy
2020-12-23 19:49
Rule No. 1 - Avoid emotional trading in the stock market. Rule no.2 - When in doubt, refer to rule no. 1. Taught by my honorable sifu.
2020-12-23 21:29
Yeah.... Today from green turned down trend again. Merry Christmas and happy new year. Tomorrow limit down or limit up for Christmas?
2020-12-23 21:42
whatever la koon. U tried too much n too many a times until everyone sien liao.
2020-12-23 22:55
Don't he get tired of writing the same thing again and again like an old record? There's an old saying, what goes around comes around. So sad to see him crazy for money at this old age. Is he starving or what? He must be really desperate sitting in front of the computer writing all these stories to get people to buy so he can run. Don't he get tired? Does he think he can take all these money with him when he goes? Why so gullible and greedy for much more since he can't take along with him? Is it worth it getting cursed day and night by those who lost from his write ups?
2020-12-23 23:34
so many good counters, why do we have to buy one of the most overvalued stock in klse?
2020-12-23 23:43
Only crazy can still holding,come January it’s subject to short selling,run before it too late
2020-12-24 11:58
Glove stocks recent peaked on 1st of December (Supermx around RM9), JP Morgan downgraded glove stocks on the 12th of December. Before JPM downgrade, Supermax was already around RM7.50.
Very bad argument. To me, this is an article spreading false info.
2020-12-24 12:05
Dear Mr. Koon Yew Yin,
Wish you and your family a “Merry Christmas and Prosperous New Year”.
Stay safe, stay invested, stay happy and enjoy the holiday/long weekend with family.
https://klse.i3investor.com/blogs/Sslee_blog/2020-12-23-story-h1538367552-My_Take_on_Year_2020_The_Year_of_Darkness.jsp
The nominees for the Golden Turkey award of the Year:
1. Koon Yew Yin: Dayang a great buying opportunity.
Publish date: Sat, 11 Jan 2020, 6:50 PM
His ‘Sailang’ all-in with margin finance cost him 90% of his wealth. Will history repeat again?
https://klse.i3investor.com/blogs/koonyewyinblog/2020-01-11-story-h1482124189-Dayang_A_great_buying_opportunity_Koon_Yew_Yin.jsp
At the close yesterday, UBS Investment Bank, with HQ in Zurich was queuing to buy 2.6 million shares at Rm 2.50 and there were only 31,100 shares selling at Rm 2.51. The closing price was Rm 2.51.
This aggressive buying by UBS also means that those who have sold earlier cannot expect to buy back at cheaper prices. What are they going to do with the sale proceeds? They cannot find another stock with the same profit growth prospect. They should be humble and admit their mistakes so that they can take advantage of this golden opportunity to make money.
When UBS is wanting to buy Dayang so aggressively, you cannot lose money if you buy as soon as possible. I will use all my available margin finance to continue buying.
2020-12-24 17:07
Other businesses are booming like CPO and Steel. Why still stuck inside gloves?
2020-12-25 14:23
dear kelvin61.. it just show how ignorant ppl are when they only see gloves... eat glove, sleep glove, breathe glove... anyway, who am i to judge... i'm just another ordinary investor that doesn't have supermax in my portfolio
2020-12-25 15:16
I will buy Supermax if it's trading at 1.4 only... Just like how it should last year
2020-12-25 23:16
when u buy, kyy slowly sell. why tf would anyone listen to this guy, even robinhood traders are better than him
2020-12-28 10:28
desperate stupid guy, hell?? ur stock advice is only for gloves are u okay? why dont u look at a post pandemic economy? margin call from banks coming to u? even my grandma also say sell gloves to buy fintech and green energy!
2020-12-28 10:31
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newbie8080
Probably less selling pressure as most traders, investors, etc are leaving for this holiday season.
They should be back on 4/1/2021
2020-12-23 09:56