THE INVESTMENT APPROACH OF CALVIN TAN
LUXCHEM (5143) A 5 STAR RATED STOCK DUE TO TRIPLE FACTORS OF COVID 19, LOW OIL PRICE & PROXY TO ALL GLOVES, Calvin Tan Research
calvintaneng
Publish date: Mon, 20 Apr 2020, 11:02 PM
calvintaneng
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Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
Hi guys,
In the STOCK PERFORMANCE GUIDE (March 2015 Edition) Dr Neoh Soon Kean of Dynaquest gave LUXCHEM a 5 Star Rating
Wondered why 5 A?
Here are some discoveries
1) The first A is Accounts
It shows Rm126 Millions in Cash
And Rm63 Millions in borrowing
So it has a Nice Cash Hoard of Rm63 Millions
Very good compared to all Glove Companies
Its P/E about 11 (Again the best among all Gloves)
Above all is its Excellent Dividend Yields
See
| 19-Feb-2020 | 17-Apr-2020 | DIVIDEND | Interim Dividend | RM 0.0125 |
 |
| 31-Jul-2019 | 03-Sep-2019 | DIVIDEND | Interim Dividend | RM 0.01 |
|
| 25-Feb-2019 | 23-Apr-2019 | DIVIDEND | Interim Dividend | RM 0.0125 |
|
| 26-Jul-2018 | 05-Sep-2018 | DIVIDEND | Interim Dividend | RM 0.01 |
|
| 20-Feb-2018 | 18-Apr-2018 | DIVIDEND | Interim Dividend | RM 0.015 |
|
| 23-Aug-2017 | 06-Sep-2017 | STOCK_SPLIT | Subdivision | 1 : 3 |
|
| 01-Sep-2017 | 29-Aug-2017 | DIVIDEND | Interim Dividend | RM 0.025 |
|
| 16-Feb-2017 | 19-Apr-2017 | DIVIDEND | Interim Dividend | RM 0.045 |
|
| 29-Jul-2016 | 09-Sep-2016 | DIVIDEND | Interim Dividend | RM 0.025 |
|
| 11-Mar-2016 | 31-May-2016 | DIVIDEND | Final Dividend | RM 0.0450 |
|
| 30-Jul-2015 | 11-Sep-2015 | DIVIDEND | Interim Dividend | RM 0.0200 |
|
| 14-Apr-2015 | 29-May-2015 | DIVIDEND | Final Dividend | RM 0.03 |
|
| 04-Dec-2014 | 16-Dec-2014 | BONUS_ISSUE | Bonus Issue | 1 : 1 |
|
| 05-Aug-2014 | 05-Sep-2014 | DIVIDEND | Interim Dividend | RM 0.03 |
So from Cash Position, Earnings & Dividends LUXCHEM passed with flying colours
2) The 2nd A is its ASSETS!!
For that please go to Luxchem Annual Report & Scrool down to PROPERTIES Owned by Luxchem
See the 1st one
1. No. 6 Jalan SS21/58, Damansara Utama, 47400 Petaling Jaya,
Selangor Darul Ehsan/ H.S (D) 170789, No. P.T. 6012,
Bandar Petaling Jaya, Petaling Jaya, Selangor Darul Ehsan
42 years/ freehold - Shoplot (4 storey mid terraced shopoffice)/office
Date of Purchase: April 08, 1991
Original cost price ; RM611,865
Current book value : Rm427,680
WOW! WOW! WOW!!
This FREEHOLD 4 STOREY SHOPHOUSE IN DAMANSARA UTAMA, PETALING JAYA WAS PURCHASED IN YEAR 1991 WITH ORIGINAL TRANSACTED PRICE PAID FOR RM611,865
NOW IT HAS BEEN DEPRECIATED TO A BOOK VALUE OF ONLY RM427,680?
HUHUHU!
IS THIS THE TRUE CURRENT VALUE?
SEE THIS
Sale RM 4,500,000
damansara utama 4 storey shop, petaling jaya, Damansara Utama
jalan ss 21/58, petaling jaya, Selangor
- Built-up : 6,600 sq. ft.
- Land area : 22x75 sq. ft.
WHOA! IT'S RM4.5 MILLIONS!
Why only Rm427,680?
Now less than 10% ?? AMAZING INDEED!!
Now take another look at LUXCHEM NAV
SUMMARY OF KEY FINANCIAL INFORMATION
|
|
INDIVIDUAL PERIOD
|
CUMULATIVE PERIOD
|
||||
|
CURRENT YEAR QUARTER
|
PRECEDING YEAR
CORRESPONDING QUARTER |
CURRENT YEAR TO DATE
|
PRECEDING YEAR
CORRESPONDING PERIOD |
||
|
31 Dec 2019
|
31 Dec 2018
|
31 Dec 2019
|
31 Dec 2018
|
||
|
$$'000
|
$$'000
|
$$'000
|
$$'000
|
||
| 1 | Revenue |
187,155
|
206,246
|
765,480
|
814,086
|
| 2 | Profit/(loss) before tax |
12,757
|
11,189
|
50,122
|
49,880
|
| 3 | Profit/(loss) for the period |
9,418
|
8,475
|
36,956
|
37,378
|
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent |
9,569
|
8,576
|
37,645
|
37,788
|
| 5 | Basic earnings/(loss) per share (Subunit) |
1.09
|
1.00
|
4.27
|
4.42
|
| 6 | Proposed/Declared dividend per share (Subunit) |
1.25
|
1.25
|
2.25
|
2.25
|
|
AS AT END OF CURRENT QUARTER
|
AS AT PRECEDING FINANCIAL YEAR END
|
||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) |
0.3400
|
0.3300
|
||
IS THE NTA OF 34 SEN ACCURATE?
NET TANGIBLE ASSET OF 4 STOREY SHOPHOUSE IN DAMANSARA UTAMA ONLY RM427,680?
REALLY?
IF NOT THEN HOW MUCH?
34 SEN X 2? = 68 sen
34 SEN X 3 = Rm1.02
OR 34 SEN X 10 = Rm3.40?
ONLY A TRUE VALUATION TO UPDATE ITS REAL ASSETS VALUE WILL SHOW
IN ANY CASE
THE ASSETS OF LUXCHEM ARE GROSSLY UNDERVALUE
OR OBSCENELY UNDERVALUE?
3) ITS ACCLAIM
Why LUXCHEM IS SO FAMOUS? OR RATHER IT SUPPLIES TO WORLD FAMOUS COMPANIES LIKE TOP GLOVE, HARTELEGA, SUPERMAX, COMFORT GLOVES & RUBBEREX
ACCORDING TO JP MORGAN MALAYSIA GLOVE COMPANIES ARE WORLD CHAMPIONS
Calvin bought into TopGlove at Rm5.00 in its early days. Taken good profit. Bought Supermax again at Rm1.60. Supermax made me another 100% when it reached Rm3.20 & split just like TopGlove did
Now Calvin very happy to buy back Supermax, Comfort Gloves & Luxchem
Malaysia has captured 65% of the World Glove Markets
Why Malaysia and not Japan or USA ? Simply no rubber trees can grow in Japan or USA!
1) BECAUSE ONLY MALAYSIA HAS FRESH LATEX WHICH RUBBER GLOVE COMPANIES NEED DAILY
NITRILE GLOVES ONLY CAME INTO PLAY IN THE MID NINETIES AFTER MALAYSIAN RUBBER GLOVES EXPORT ALREADY ENTRENCHED ITS POSITION ON WORLD MARKET
2) ANOTHER REASON IS COST
Glove Production entails intensive use of manual labour. Malaysia imports cheap Bangla labourers by the Millions which neither Japan nor USA would allow
Each rubber or nitrile glove must be personally tested one by one (machines cannot do this)
See
https://www.youtube.com/watch?v=1-uH0KmgU_o
4) THE ACCELERATION
NOW WE ARE IN THE VERY MIDST OF A WORLD WIDE PANDEMIC OF CORONAVIRUS
MANY HAVE REQUESTED 20 LORRIES OF GLOVES WHEN THEY USED TO BUY 10 LORRIES
TOPGLOVE SAID EVEN ENTIRE GOVERNMENTS OF NATIONS ARE ASKING TO BUY GLOVES DIRECTLY DUE TO ASTRONOMICAL DEMAND OF GLOVES FOR PROTECTION AGAINST CORONAVIRUS
PRODUCTION IS IN FULL ACCELERATION INTO 24/7
HARTALEGA EVEN INCREASED GLOVE PRICES BY 3% TO 5%
RUBBEREX NEW FACTORY SHOULD INCREASE BY ANOTHER 1 BILLION NITRILE GLOVES
TOTAL PRODUCTION WILL SKYROCKET TO OVER 300 BILLIONS?
AMAZING
SINCE ALL GLOVE COMPANIES BUY LATEX AND NITRILE RESIN FROM LUXCHEM
LUXCHEM SHOULD DO EXTREMELY WELL!
5) THE ACCUMULATION!!
Knowing full well the Deep Value of LUXCHEM Top Boss already secured more than 50% of the total paid up shares
And still adding more
| DATUK KWAN FOH KWAI | 19-Mar-2020 | Acquired | 50,000 | - |
|
| DATUK KWAN FOH KWAI | 16-Mar-2020 | Acquired | 50,000 | - |
|
| DATO' HAJI MOKHTAR BIN HAJI SAMAD | 23-Aug-2019 | Others | 300,000 | 0.240 |
|
| MADAM CHEN MOI KEW | 28-Jun-2019 | Acquired | 4,590,000 | - |
|
| MADAM CHIN SONG MOOI | 14-Jun-2019 | Acquired | 800,000 | - |
|
| MR TANG YING SEE | 14-Jun-2019 | Acquired | 800,000 | - |
|
| MADAM CHEN MOI KEW | 13-Jun-2019 | Disposed | 2,595,000 | - |
|
| MADAM CHIN SONG MOOI | 13-Jun-2019 | Acquired | 4,100,000 | - |
|
| MR TANG YING SEE | 13-Jun-2019 | Acquired | 4,100,000 |
THAT'S IT
5 STAR RATING
Account (High Net Cash & Good dividends)
Asset (Totally undervalue)
Acclaim (World Champion Glove Companies proxy)
Acceleration (Increasing demand & rising prices)
Accumulation (Directors gobbling up)
Best Regards
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please check with your remisier, fund manager, accountant or real estate valuer.
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Discussions
1 person likes this. Showing 25 of 25 comments
Philip ( Random Walk Theorist)
Sell LUXCHEM buy NETX
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-03-25-story-h1485637446-TIME_TO_LOAD_UP_ALL_OVERSOLD_NFCP_FIBERISATION_STOCKS_NOW_NETX_REDTONE_.jsp
Already loaded up NFCP stocks where to get money to buy LUXCHEM
NFCP stocks still underwater....
https://klse.i3investor.com/servlets/pfs/131750.jsp
How to buy LUXCHEM???
2020-04-21 07:06
Very good morning to all who visit here
Netx by virtue of it being spammed day and night by relentless naysayers of ill will is now very cheap at one sen
Calvin happy to admit he is now in Top 30 holders
Next is part of the Nfcp fiberisation bullrun stock which will last for 5 years. This is a marathon
As for Luxchem, comfort gloves and supermax they are also in a shorter term bull run of 6 months to 2 years as long as coronavirus lingers
So can still get on board as the days are still early and there is much more upside
Last night Crude oil futures turned negative first time in more than 150 years
This is the warning to sell oil and gas stocks like serba and yinson and others
Serba taking up rm7 billions in UAE is suicidal as the Middle east will face very bleak times due to horrendous oil crash
So serba won't get paid just like Meena defaulted on Rm300 millions debt to Zelan
Zelan will go insolvent and then bankrupt
And serba will follow.
Only exveptions are T7 global (got 5 years subsea) and Scomies (bombed out with value emerging )
Sell all dayang, Uzma, carimin(bosses also selling) penergy and others
Keep very safe in Nfcp stocks which have Govt support
And gloves as coronavirus plus cheap oil give double booster
Happy investing
2020-04-21 08:17
let me give u another alternative and its competitor...hextar…@50c its a steal
2020-04-21 14:28
Lextcs
Tell us more
I only see hextar doing agriculture
It has Rm29 million cash but Rm35 millions debt
2020-04-21 15:35
Today both Comfort glove and supermax gone up while klse dropped 30 points with 800 counters in the red
This shows that Glove bull run still powering up
Luxchem will ride on them all
2020-04-21 19:26
Who is the real con artist here if not johnchew5
Why johnchew5?
Answer:
Johnchew1 to johnchew4 have been spamming like a conman and been suspended so he created another fake id johnchew5
Never pay attention to someone who has no character or honesty like johnchew
2020-04-21 20:53
Big daddy
Tell you what you should avoid and not Luxchem due to oil price crashing
1. Avoid oil and gas companies like serba, yinson dayang , carimin, deleum and Penergy
2. Avoid all solar stocks because oil now so cheap solar power is redundant and no longer cost effective
3. Avoid coal fired power plants as cost of oil has fallen below coal prices
Low oil prices will benefit Luxchem and all glove companies that use petroleum as a base
2020-04-22 01:04
Posted by PureBULL ... > Apr 22, 2020 12:36 PM | Report Abuse
MEDICAL.GLOVE is the BEST biz in the world NOW. PROFIT u must this time !
Yes SUPERMX n COMFORT r both 100% producing medical.gloves.
They r positioned niceely in the BIGGEST wave of their biz...
All the countries in the world r buying n stock piling gloves like crazzzy.
Medical.glove is like so precious.
All the gov of all countries fly in their planes to msia to pick it up n air-flown back !
When each country forces to open up its economy, the demand for medical.glove
is expected to surge MORE...
In investing, what prompts warren b to buy stocks ? :
Price is what U pay now, VALUE is what U buy.
It means for high profit growing plc in SUPERMX n COMFORT;
U pay the price now n the VALUE could potentially go up n UP to PER 30 then 40 in 2 months.
Ain't these wonderful companies in msia ?
WELL SAID sifu pureBULL
PURE BULL RUN TIME FOR GLOVES!!
PURE PROFITS FOR LUXCHEM!!
2020-04-22 12:40
Calvin sifu, media prima at current price is it possible to take up some?
2020-04-22 16:35
10bagger10 Calvin sifu, media prima at current price is it possible to take up some?
22/04/2020 4:35 PM
For the moment no visibility
Only thing is EPF dumping (so better wait & see)
https://klse.i3investor.com/servlets/stk/annchsh/4502.jsp
Media must succeed in online space if it were to survive
Theedgedaily also going online & no more printing
Gloves & Tech stocks are in bull run
2020-04-22 17:07
Posted by PureBULL ... > Apr 22, 2020 4:12 PM | Report Abuse
Dear sifu calvintaneng,
Simply fantastic stock selection on LUXCHEM at perfect Right Timing.
CONGRATS sifu...
Mesti cari money to buy some going forward .
Aiya, I don't use margin leh !
Calvin say THANK YOU VERY MUCH to sifuPUREBULL
I SAW THESE WORDS BELOW
(((GLOVES too were sold down.
Thanks GOD, GLOVES r the only UPTREND stocks.
UPTREND is your friend, we must embrace tightly every-time ...)))
Posted by PureBULL ... > Mar 17, 2020 3:43 PM | Report Abuse X
i. -ve
There r lots of fund redemption. All Fund managers have no choice but have to sell across the board, all their stocks in hand including GLOVES.
ii. +ve
After this sudden crash, DOW should be in GOOD hands.
The brightest minds in wall.street MUST do something MORE effective asap to create a meaningful REBOUND now !
GLOVES too were sold down.
Thanks GOD, GLOVES r the only UPTREND stocks.
UPTREND is your friend, we must embrace tightly every-time ...
2020-04-22 17:18
Any idea what percentage of their sales frm glove companies?
Could the increase profits frm gloves be offset by lower demand frm other industries?
2020-04-22 20:14
Posted by Targeted > Apr 22, 2020 8:14 PM | Report Abuse
Any idea what percentage of their sales frm glove companies?
Could the increase profits frm gloves be offset by lower demand frm other industries?
About 20% to 25% of Chemicals are for Gloves. Rest are for others
Yes demand for other Chemicals will stagnate due to lower demand for consumer discretionary
Since they have EXTRA capacity (20%) in Perak (35%) in Melaka they could stop others and just ramp up production to meet EXTRA Demand from All Gloves Companies. Being expert in over 400 chemical types make them very versatile to adapt
One Big Factor is the Collapse of Oil price by over 70% which will BOOST PROFITS
2020-04-22 20:28
Petrochemical biz has been over crowded for sometime. I don't see any of them able to increase they profit.
2020-04-22 22:10
Better avoid pure petrochemical
Luxchem is different because it has latex rubber chemical for gloves plus nitrile gloves
2020-04-22 23:06
Luxchem does not sell gloves
It sells latex and nitrile resin to most Glove companies like topglove, harta, Supermax, kossan and comfort
Calvin has a target price for Luxchem at 80 sen
See how far other Glove stocks can go up then we will know in coming months
2020-04-22 23:23
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4.9 / 5.0
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
WAH OIL CRASHED TO A LOW OF USD2.35
LUXCHEM PROFIT WILL EXPLODE UPWARDS!!!
http://www.livecharts.co.uk/MarketCharts/crude.php
2020-04-21 01:28