Koon Yew Yin's Blog
Why Glove Stock prices are dropping? Koon Yew Yin
Koon Yew Yin
Publish date: Thu, 06 May 2021, 09:32 AM
Koon Yew Yin
0 1,414
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
This is one of the most if not the most important lesson for all investors.
Recently I have posted a few articles about the oversupply of medical gloves. As a result, the average selling price of gloves is dropping and glove makers cannot make more and more profit. Unfortunately, many people did not believe me. In fact, a few senseless critics in the i3investors forum often said that when KYY ask you to sell, they must buy.
All the existing glove makers have added many new production lines in each of their factories and also constructed new factories. Moreover, many companies who are traditionally not in the glove business also constructed new factories to make gloves. As a result, the supply exceeds demand.
Profit growth prospect
Among all the stock selection criteria such as NTA, dividend yield, cashflow, EPS, PE ratio, debt or healthy accounts etc, profit growth prospect is the most powerful catalyst to move stock price.
When a company reports increased profit, its stock price should go up. When a company reports reduced profit, its stock price should drop.
For example, Supermax just reported EPS 38.83 sen for the quarter ending March 2021. Its previous EPS was 41.14 sen for the quarter ending December 2020 which was better. That simply means, Supermax has reported reduced profit. That is why its share price has been dropping in the last few days as shown on the price chart below.
All the other glove makers are also facing the same situation as shown on their price charts below.
Supermax price chart below
Top Glove price chart below
Kossan price chart below
Hartalega price chart below
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Discussions
1 person likes this. Showing 46 of 46 comments
Only listen to Coldeye, who understands investing much more than Fool You Yin
2021-05-06 11:18
But his steel stocks are dropping too. Lol. Whole Bursa is bleeding. Do you think people need steel when our economy is in dire straits? Construction players are not expecting any projects for awhile. Government do not have money. Even if glove supply increase, demand will be picking up with more emerging countries increasing their per capita consumption.
2021-05-06 11:19
Hehehehehe....manyak cupat ini uncle copy paste to prepare this useful article la.....salute salute!!!!Sometimes I am just wondering how to make a cow to bow it’s head down unless they wanna drink water
2021-05-06 11:24
The organic growth of gloves business remain intact. Your argument sounds like you invest based on hype.
2021-05-06 11:47
at current price, under 5.10, 9.48% yields is not that bad assuming TOPGLOVE not going bankrupt in the next 12 months..
2021-05-06 13:14
Koon, apa macam MNRB? Aku sudah lama sangkut sebab ko promote manyak kuat bulan lepas
2021-05-06 13:46
All the big 4 gloves reported big profits and growth since June 2020 and yet the share price corrected since October 2020. That was freaking 7 months ago. How to explain that then?
2021-05-06 15:05
This is exactly like face mask, oversupply is imminent. Selling price from RM100+ per box to now RM3. Expect average gloves price to dive below pre-covid price soon as market is flooded with the products.
2021-05-06 16:35
if Mah Sing also jump into this glove sector, you can imagine how many ah kau ah beng will also join the fun, oversupply will happen. There is only so much of gloves can be used in a day, you can produce many gloves overnight but you cant construct a hospital or product a healthcare personal overnight.
2021-05-06 17:10
the old man will come out said have i told you this and that when the wind is right, but how is the stock of KPS where he also strongly promote?
2021-05-06 17:12
Thank you, O wise one, Sir Chimpanzee Fool You Yin, for gracing us with another worthless article on gloves.
You are the King Monyet!
:DDDDDDDDDD
2021-05-06 17:38
nevermind the asp. the asp is adjusting lower but still high compare to pre covid. see the pat in billion rm is very attracting. in klse, less than 10 companies can achieve billion pat. glove companies still enjoying high asp for the next few quarters......uncle kyy, move in to get some glove share before the price higher....p/s: do not play margin anymore la.
2021-05-06 17:56
Last sermon... wait another one and another and another.... lalalalala
2021-05-06 20:25
why uncle still talk about glove?
comela uncle, talk about airasia,genting holiday holiday!!!
2021-05-06 20:27
To protect ourselves against the curse of kyy, just divert some fund from glove
stocks to steel / timber / wood / furniture stocks. Then, we are safe n sound from
anything kyy wants to say ! Please stay safe n hapi.
2021-05-06 21:31
Before pandemic, profit is less than 100 million still can give dividend and bonuses. What about few hundred million???
2021-05-07 07:28
Release more article la! everytime the price will go opposite direction from your call. Faster condemn gloves summore, the more you condemn the better
2021-05-07 09:23
6/5/2021 short selling trades current 10 days
Total Net Short Position .
Topglove 249,570,092 shares 3.05%
Hartalega 50,292,243 shares 1.47%
Supermax 47,268,758 shares 1.74%
Kossan 30,785,337 shares 1.21%
2021-05-07 13:20
Market is forward looking, towards 6 months or more from now. Market already expected the glove supply will increase n glove price will moderate and hence share price mostly adjusted. Therefor, if based on PASSED financial results, the PE now is damn low. But if based on future profit, share price already adjusted downwards. Whether adjusted enough, it's everybody's guess.
2021-05-07 20:48
Now you know why he is called Sir Chimpanzee Fool You Yin.
____________________
Mabel Uncle,
Today all Mabel's Fantastic Four are nice and green...
Meow
07/05/2021 11:04 PM
2021-05-08 00:16
Still waiting old man to write about 'how to keep promoting a stock he dumped 3 weeks' ago?'
2021-05-08 00:47
@enumaelish - hahaha. true true.
Latest Careplus results.
Stock ---- Ann.Date -- Qtr --- NP ('000) --- EPS ---- DPS
CAREPLS -- 07-May --- 31-Mar - 123,543 ---- 22.90 --- 2.00
I'm sure Fool You Yin will be keen to comment on Careplus achieving a net profit of RM123,543,000.
2021-05-08 05:14
Very less ikan bilis holding gloves now. Is time to fly. Uncle will catch it when only price is high!
2021-05-08 08:41
Waiting for right time to buy TopGlov. Quite unstable now as prices are low but no strong volume buying is seen. Maybe after MCO be better.
2021-06-05 12:24
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Fool You Yin doesn't know what he is even talking about.
2021-05-06 11:16