Hi guys, 

This year has been very excellent for GLOVE BULL RUN just like the OGSE BULL RUN of last year.

And since Glove Stocks already run up by 100% to 400% in some cases from its lows I have gradually shifted my attention to Glove & Face Mask Stocks like Adventa & Mtag.

Now my latest discovery is Prolexus as it goes into the manufature of ProXmask

But now as we dig deeper we found to our surprise!

Tan Teng Boo of ICapital Biz has bought 1.592 MILLIONS PROLEXUS Shares only in Year 2019 & EMERGED AS TOP 21 HOLDER OF PROLEXUS!!

Ha! He bought them when there was No Covid 19! So he must have accumulated These Shares On Its Own Merit

That sets me thinking deeper

Why Oh Why?

What Dis Tan Teng Boo See in PROLEXUS.

Is Prolexus another Padini? We know TTB bought Padini years back when prices were dirt cheap. Padini was only 65 sen on May 2008. So will Prolexus now be another Padini?

Let's take a look at Prolexus

1) Its last quarter is profitable if you take away loss from currency conversion

Please refer to last Qtr result

Profit for the period...............Rm 699,000

Foreign currency translation differences for foreign operations (Rm1,199,000)

Total comprehensive (loss)/income for the period (Rm500,000)

So if we take out the losses from currency translation difference Prolexus actually registered a profit

2) PROLEXUS GOT GOOD MARGIN OF SAFETY

Price only 63.5 sen with NAV of Rm1.31 Prolexus is selling at a Huge Discount of 52% or less than half its Asset Value

A check with Properties owned by Prolexus showed it owned many Industrial Factories which are resilient from recession

3) Its Borrowings are Long Term backed by Assets while It has Rm70 Millions in CASH

Very good cash flow as Prolexus debt is long term for buying Factories. Now got three plus points

i) Govt has told banks to freeze loan payments.So Prolexus need not pay bank loan for next 6 moths

ii) Employees are given Govt subsidies in MCO lock-down

iii) Best news! Bank Negara cut interest rate from 2.5% to 2%. Substantial savings for Prolexus

4) Prolexus has Excellent Leadership in ProActive Management

So while Prolexus debt is on hold Its CASH HOARD has been ProActively deployed to Make ProXmask!

Already so successful now they are stepping up with an improved version

In a time of Crisis by Covid 19 they seized the opportunity presented to make High Value FaceXmask

The Speed of Management & Its Foresight is commendable

5)THIS IS A HIGH VALUE ADD COMPANY

Unlike Padini which sell to the masses Prolexus manufactures for High Branded Companies like NIKE, DISNEY, UNDER ARMOUR, CONVERSE, GAP & OTHERS

While Padini has a Malaysian based domestic market Prolexus thru its Exposure in World Class Brands have a Very Huge Market in China & USA (Gap is reopening 800 Stores & selling on-line)

Even with Covid 19 lock-down in China NIKE Has Gone To ECommerce by Selling On-line. And Sales have increased by 30%

https://qz.com/1825248/what-nike-learned-in-china-during-the-coronavirus-outbreak/

6) SO IS THAT WHY TTB OF ICAPBIZ DISCOVERED? NO PROBLEM. PROLEXUS' OWN BOSSES KNOW TOO WELL ITS GOOD PROSPECT

SEE AGAIN HOW THEY BOUGHT AND BOUGHT

MR LAU MONG YING	29-Apr-2020	Acquired	80,000	0.499
MR LAU MONG YING	28-Apr-2020	Acquired	73,100	0.485
MR LAU MONG YING	27-Apr-2020	Acquired	16,400	0.475
MR LAU MONG YING	24-Apr-2020	Acquired	140,000	0.479
ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI	16-Mar-2020	Acquired	20,000	0.435
ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI	04-Feb-2020	Transferred	34,100	-
ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI	14-Jan-2020	Acquired	5,000	0.740
MR LAU MONG YING	14-Jan-2020	Acquired	20,000	0.755
MR LAU MONG YING	13-Jan-2020	Acquired	50,000	0.756
MR LAU MONG YING	10-Jan-2020	Acquired	30,000	0.762
MR LAU MONG FAH	03-Jan-2020	Acquired	15,000	0.810
MR LAU MONG YING	03-Jan-2020	Acquired	80,000	0.811
MR LAU MONG YING	02-Jan-2020	Acquired	10,000	0.820
MR LAU MONG YING	31-Dec-2019	Acquired	30,000	0.822
MR LAU MONG YING	19-Dec-2019	Acquired	30,000	0.825
MR LAU MONG YING	18-Dec-2019	Acquired	10,000	0.810
MR LAU MONG YING	17-Dec-2019	Acquired	50,000	0.802
MR LAU MONG YING	13-Dec-2019	Acquired	100,000	0.874

7) ONE MORE VERY TOP TOP SECRET

My Johor Sifu was among the very first to take up IcapBiz Ipo share at par value of Rm1.00 

After more than 10 years IcapBiz shares have gone up from Rm1.00 to the high over over Rm2.50 or up more than 150% at its peak

That means that ICapBiz gave him a yield of over 10% yearly

But my Johor sifu was totally dissatisfied as he could have done much better than Tan Teng Boo (TTB)

He voiced his unhappiness by calling out TAN TENG BOOOOO!!!

You see, my Johor Sifu is an avid student of Great Champion Sifu Dr Neoh Soon Kean of Dynaquest. He easily make more than 15% to 25% on his own

But one day while having coffee with my Johor Sifu he told me the secret

He would read every Annual Report of ICapBiz to see what TTB buys

No wonder now I know

He once gave me a Tip on Petronas Dagangang at Rm4.50. It went up more than 500% to over Rm20.00

He also bought P.I.E, INTEGRAX & TONGHHER - all Secret Tips from ICapBiz Annual Reports

He told me altough he did not benefit much from investing in ICapBiz directly (I told him to give up IcapBiz but he some how refused) he made a killing buying into P.I.E with his pesonal investment

He made Rm1.5 Millions  from P.I.E and others

Of course TTB took high salary of Millions in IcapBiz  & drives a ferari car. But for P.I.E he need not pay a sen to TTB

That was his consolation being locked up in IcapBiz for a decade

Now is my Johor Sifu also buying Prolexus?

For that I need to call him

Prolexus price now 63.5 sen

Calvin has a target price for Prolexus at Rm1.00 or just a modest 57% upside

Hopefully after Glove Bull the Face Mask Bull will follow. The Sale of ProXmask will propel Prolexus price up

Best Regards

Calvin Tan Research

Singapore

Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager