Trading With A View
(Tradeview Commentaries) - A Message to Local Funds Especially Macquarie Bank - Don't Be A Joke
tradeview
Publish date: Fri, 11 Sep 2020, 10:12 AM
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Author of Once Upon A Time In Bursa : The MONEY Equation. A corporate strategist, lawyer & avid investor who has two great passion in life: Financial Markets & Real Estate. A true fundamentalist and financial writer motivated to tip the scale in favour of retail investors. Believe the stock market can be force for good.
Contact for update : tradeview101@gmail.com
Telegram: https://telegram.me/tradeview101
Contact for update : tradeview101@gmail.com
Telegram: https://telegram.me/tradeview101
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When the Glove Sector was killed off by certain Local Funds since the start of last week, coupled with some incompetent reports from select "professionals", you might be asking, since the funds have left Gloves. Where would they go next? What is the next thematic / rotation play?
I can with great certainty share with you, regardless of which sector they move to, it wont move up and these Local Funds wont be able to make money from that sector. The Glove Sector is the one supporting the KLCI index, it is also the one that is supporting the other ancillary sector (be it healthcare or indirectly linked such as Bursa due to high volume). Gosh, even the water, electricity, natural gas consumption by these Glove Manufacturers are supporting the utilities sector for the government when other industries have slowed down as a result of the pandemic. I like this message by Principal Asset:
Her views were echoed by Principal Asset chief investment officer Patrick Chang, who said that the FBM KLCI has largely been driven by the healthcare sector, which has seen medical glove manufacturers, in particular, raking in bumper profits amid the Covid-19 pandemic.
Compared with its regional peers, he said the KLCI has been the biggest outperformer in ASEAN year-to-date, having only been down by about 6% compared with Thailand (down 22%), Singapore (down 22%) and Indonesia (down 25%).
These countries, he noted, do not have a massive glove sector like Malaysia does.
"Glove makers are making historic amount of profits as we speak - this tells you at the end of the day that it is backed by fundamentals.
- Tech ? Down
- Banking ? Down
- Plantation ? Down
- Wood? Down
- Consumer? Down
- Utilities ? Down
- Telco ? Down
The list goes on. Banks don't even give Local Funds the yield anymore. So where are the Funds going to park your funds in search of yields? Your best bet is for the Glove players to be generous with their dividend this year and fill in the gap left by other Blue Chip stocks. Hence, if Funds continue selling down and creating nonsense justifications to play down the sector, trust me, even the Glove Sector cant save the Fund's performance this year. Why? Glove Players would probably need to use their cash holdings to support their share price.
So, now where else do you turn to? Sure, one can artificially prop up some of these sectors last minute to try to beautify your Index. However, the market will not respond to your nonsense. In fact, the market always punishes greed, pride & laziness. You may want to rotate out and switch to other sectors, but no one is following you. So you are just playing with yourself. And if you are playing with yourself, the share price will not go up. This is because all market participants need to be on the same page for a company share price to rise. Its as simple as that.
This is my message to Macquarie's unbelievably incompetent and questionable Research Report Downgrade of Top Glove yesterday. This has caused such a reputation dent to your Bank that if I am senior management or the CEO of the Bank, I would summon the head of research to reprimand how his action brought disgrace to the organisation. Why am I saying this? Just look at what Macquarie send to my mailbox this morning.
My message to Macquarie - After adding salt to injury in the market yesterday, you have the nerves to reiterate outperformance on Bursa stock to promote your call warrants on Bursa. How dare you email me with his garbage? Bursa's share price and volume has been reaching record high because of Gloves sector. If you want to say Gloves sector's supernormal profit in 2021 will never repeat itself and its a one off, hence justifying pegged to 2022/2023 normalised ASP earnings, do the same for Bursa. Downgrade to underperform as well and pegged it to 2022/2023 normalised Average Daily Volume. Be Consistent in your message - Macquarie. Dont be joke.
Ps: McQ, just bring back the previous Glove Analyst - Denise Soon
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Food for thought:
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Discussions
11 people like this. Showing 15 of 15 comments
This analyst from Macquarie is called Prem, head some more ... really hopeless.
2020-09-11 12:38
Well said. To all investors,since these big guys' research teams are so reckless and lack of integrity, they are not reliable anymore. Their analysis and research reports are just trash. So, don't bother to read them. They can downgrade, upgrade, overweight or underweight, and all kind of bullshit,just keep it to themselves or share it with fund managers who depend on their reports to invest in the market. We will just stop buying these IB'sbig guys' warrants from today onward,let the fund managers buy and play among themselves. We only buy the mother shares.Let these big guys eat shits.
2020-09-11 14:38
Fabien "The Efficient Capital Allocater"
It take years to build reputation. But it only takes one moment of foolish act to lose credibility
2020-09-11 22:56
FULLY AGREE with tradeview !!!
https://klse.i3investor.com/blogs/gloveharicut/2020-09-10-story-h15134...
https://klse.i3investor.com/blogs/glovesvsvaccine/2020-09-10-story-h15...
BURSA MALAYSIA REPRIMANDS AND FINES MACQUARIE AND TWO FORMER HEADS OF DEALING
https://www.bursamalaysia.com/about_bursa/media_centre/bursa-malaysia-...
Bursa Malaysia rebukes Macquarie for market manipulation
https://www.thetradenews.com/bursa-malaysia-rebukes-macquarie-for-mark...
That’s how crook evil IBs con cheat retail investors, twist and spin Buy and Sell calls to benefit their big clients only
Boycott all MACQUARIE call warrants!!!
Ban all Call Warrants!!!
How could useless Bursa and SC let evil IBs issue call warrants on other companies to encourage gambling??
KARMA WILL HIT THOSE EVIL ONES VERY HARD
2020-09-12 00:07
MacQ should put the money where the mouth Is. Give a bloody reply on this article by Tradeview.
2020-09-12 00:18
LOL!! Posting 2011 article to shame MACQ?
It shows your stupidity and that is why many are crying now!
Baseless articles need no reply.
2020-09-12 00:21
mekquarie is a joker
giantpanda: That’s how crook evil IBs con cheat retail investors, twist and spin Buy and Sell calls to benefit their big clients only
In my my not so professional opinion(no CFA la), panda u comel la.
I found this....
https://ekkamai-simplelife.blogspot.com/2015/10/reality-check-lapuran-penganalisa-saham.html
2020-09-12 12:59
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gloveharicut
Agree. Please bring back the SMART Denise Soon
2020-09-11 11:29