Koon Yew Yin's Blog
Glove stocks: to buy or not - Koon Yew Yin
Koon Yew Yin
Publish date: Fri, 23 Apr 2021, 08:43 AM
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
Kossan just reported a fantastic profit increase for its quarter ending March 2021 with an EPS of 40.76 sen. Its EPS for its previous quarter ending December was only 21.21 sen. It gained nearly 100%.
Very soon all the other Glove manufacturers like Supermax, Top Glove, Comfort etc will also report fantastic increase in profit.
Glove oversupply
Soon all the glove makers will not be able to report increase profit because the average selling price is dropping due to oversupply of gloves.
All the existing glove makers have been expanding their production lines. They even have started new factories. Supermax has constructed a new glove factory in Canada.
In fact, many companies which are not in the glove business also diversified to make gloves. I only know the names of 11 new glove makers in Malaysia. There may be many more that I don’t know.
1 At Glove
2 Mah Sing Healthcare
3 AXG
4 Leader Steel
5 Rimba Gloves
6 HLT Global
7 Kanger Tech
8 CE Technology
9 Inix Technology
10 23 Gloves Johore
11 Luster Industry
Increase glove supply from China
Although I do not know the names of glove makers from China, but I can imagine how quickly the Chinese Entrepreneurs would have taken advantage of this profitable opportunity. They must have expanded their glove production.
US Government
The US Government has provided many incentives for glove manufacture in US because they do not want to depend on imported gloves.
European Union
The European Union has provided large sum of money for the Covid 19 pandemic prevention and low interest loan to encourage investors to start glove factories in Europe.
Reduce demand due to massive Vaccination
Due to massive vaccination, the number of new Covid 19 cases is gradually being reduced. As a result, the demand for medical gloves is also being reduced gradually.
Reduced ASP
Based on the above factors, I wish to point out that the average selling glove price will continue to drop due to oversupply. As a result, all the glove makers will not have profit growth any more.
Investors must remember that among all the stock selection criteria such as NTA, Cashflow, PE ratio, dividend yield, debt or healthy balance sheet, etc, the most powerful catalyst to move share price is profit growth prospect. Never buy any stock that has no good profit growth. Never buy any stock if it cannot report increased profit in the next few quarters.
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Discussions
1 person likes this. Showing 23 of 23 comments
I have been making so much money by trading against what KYY advises the last 10 years
2021-04-24 01:49
u guys know what to do now? against uncle will also give u awesome reward. Thanks for the tips uncle.
2021-04-24 09:30
Lol old man like that also can... I tot u wanna put 'kossan leads the way*
2021-04-24 10:38
I think everybody knows what to do with KYY's comments and not be conned by him. Yes, just do the opposite.
2021-04-24 15:22
This time KYY is much more smart,,,,he is listing 11 counter for you all to tikam,,,,
2021-04-24 17:14
why Con you win articles always pop to i3 top articles? remove this con man already. zero credibility and pure manipulator.
2021-04-24 19:54
This uncle got ZERO credibility.
He is the BIGGEST CONMAN in i3
Conning newbies to put money in his pocket.
2021-04-25 14:52
When old fox sold all his glove shares started to condemn glove counter. This old fox and his syndicate really evil. Last time condemn Mahsing and buy call AT make everyone suffer. After clear all his position started to condemn glove counter niamacb
2021-04-25 16:53
KYY kept asking people to buy glov stock when it was downtrend from Oct to Feb, now keep asking people to abandon glove stock when the trend is reversed to uptrend, wht strategy is this? what happened to him? no principle at all.
2021-04-26 16:53
Seem like he miss the boat. Ask people to sell glove & he can collect cheaper. Very smart move.
2021-04-28 21:12
Uncle last time u say AT can sky rocket...n promote supermax n topglove 9696...now say gloves cannot liao
2021-04-29 15:20
Tak tipu tak untung,,,,tak untung tak jadi olang kaya ,,,,macam najib bossku,,,,,
2021-04-29 15:59
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KYY say cannot buy means MUST buy! Do the opposite from his article and confirm you wont get con
2021-04-23 10:38