THE INVESTMENT APPROACH OF CALVIN TAN

3 THINGS YOU MUST KNOW ABOUT GLOVES & PALM OIL FROM COMFORT GLOVES VERSUS UMALACCA RESULTS, Calvin Tan

calvintaneng
Publish date: Fri, 17 Dec 2021, 10:49 PM
calvintaneng
0 1,701
Hi Guys,

I have An Investment Approach I which I would like to all.
Following Message

Dear friends

As this title implies Gloves are losing almost  50% while Palm oil profit up 500%

 

See these 3 Important Facts

 

1) Comfort Glove's profit dropped by almost 50% while Umalacca profit jumped up by 500%

See

 

COMFORT GLOVE

SUMMARY OF KEY FINANCIAL INFORMATION
31 Oct 2021
 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
Three Months
Three Months
Nine Months
Nine Months
01 Aug 2021
To
01 Aug 2020
To
01 Feb 2021
To
01 Feb 2020
To
31 Oct 2021
31 Oct 2020
31 Oct 2021
31 Oct 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
220,930
276,688
1,266,401
627,547
2 Profit/(loss) before tax
49,036
117,526
547,480
196,654
3 Profit/(loss) for the period
45,850
90,329
413,807
149,465
4 Profit/(loss) attributable to ordinary equity holders of the parent
45,850
90,329
413,807
149,465
5 Basic earnings/(loss) per share (Subunit)
7.90
15.50
71.29
25.64
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
6.00
1.50
   
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 ($$)
1.6000
1.0000
 

 

Both Revenue & Profit have dropped from Year to Year

 

 

 

UMALACCA

SUMMARY OF KEY FINANCIAL INFORMATION
31 Oct 2021
 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Oct 2021
31 Oct 2020
31 Oct 2021
31 Oct 2020
$$'000
$$'000
$$'000
$$'000
1 Revenue
143,854
97,949
258,722
184,735
2 Profit/(loss) before tax
48,343
9,902
75,597
11,808
3 Profit/(loss) for the period
36,571
6,326
57,852
9,064
4 Profit/(loss) attributable to ordinary equity holders of the parent
36,096
7,433
56,941
10,987
5 Basic earnings/(loss) per share (Subunit)
17.21
3.54
27.14
5.24
6 Proposed/Declared dividend per share (Subunit)
5.00
3.00
5.00
3.00
   
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 ($$)
6.4700
6.2400
 

Revenue Up & Profit jumped 500%

 

This shows clearly that while Gloves are earning less and less profit Palm oil is earning more & more profit

 

WHY?

This brings us to 2nd Answer

 

2)VERY INTENSE PRICE WAR IN GLOVES DRAG DOWN SALES  WHILE STRONG PRICE SUPPORT FROM COMPETING CANOLA/SOYOIL PUSH UP CPO PRICES

 

GLOVES NO BARRIER TO ENTRY WHILE PALM OIL HAS HIGH TIME BARRIER TO ENTRY

 

Gloves are made in Malaysia for decades but NOT THE GLOVE AUTO MAKING MACHINES WHICH ARE IMPORTED FROM CHINA

Since China saw Malaysia Minted New Glove Billionaires they came to join the party in BIG WAY

Just 4 months are needed for China to set up new Glove Factories & start Production - Resulting in very fierce competition against all gloves entities every where

See what Comfort gloves reported

 

The Group anticipates that the business environment will be challenging in immediate term as the competition will be very intense despite the weakening glove demand.

The ASP has been softening continuously due to the increase of gloves supply.

 

Read again:

Competition wil be very intense

ASP has been softening continuously due to the increase of gloves supply

That is the downtrending direction of gloves which might swing to losses later if prices thrown down below cost of production in next few quarter results & longer

 

Palm oil on the other hand is supported by Very Very high Prices of competing Vege OIl like Canola & Soybean oil

See Canola oil Chart

 

 

RS1
1Mo
20030040050060070080090010001100
20002005201020152020
999.90
1Y5Y10Y25YAll
 
Canola (CAD/T) 999.90  +12.8 (+1.30%)
 

 


  Price     Day Month Year
Soybeans 1285.0000   7.75 0.61% 1.44% 4.88%
Wheat 768.5000   2 -0.26% -6.25% 26.39%
Lumber 1,119.10   9.60 0.87% 57.18% 33.21%

 

CANOLA HAS BROKEN OUT FROM ITS ALL TIME HIGH OF USD600 TO NEW WORLD RECORD NEAR USD1,000

 

Instead of competition Canada Suffered its worst drought last summer which wiped out its canola crop

 

 

SOYBEAN OILCommodity

0.55+0.00+0.29%
09:34:00 AM
MI Indication
 
 
 
S 1
1Mo
400600800100012001400160018002000
198219901998200620142022
1290.5
1D1W1M3M6M1Y5Y10Y25YAll
 
Soybeans (USd/Bu) 1290.5  +13.25 (+1.04%)
 


  Price     Day Month Year
Soybeans 1290.5000   13.25 1.04% 1.76% 5.21%
Wheat 773.0000   2.5 0.32% -5.85% 26.92%
Lumber 1,119.10   9.60 0.87% 57.18% 33.21%

 

Now unlike Gloves which any Tom, Dick or Harry in China could set up in just 4 months & start churning out Gloves by the Billions it takes at least 4 to 5 years to find & clear lands & plant Oil Palm seed to harvest

So there won't be any new competition till year 2026 at the very least. And Next year New Renewable Energy Demand by New Biodisel Refineries for biodisel will further support Canola oil, Soyoil as well as palm oil prices

This shows that Glove will show decreasing profits while Palm oil profits will see exponential growth

 

That brings us the 3 Facts

 

3) GLOVE INSIDERS ARE SELLING AND PALM OIL INSIDERS ARE BUYING

 

See COMFORT GLOVES

 

See UMALACCA

 

 

A VICTORIOUS ARMY CHARGE FORWARD IN CONQUEST LIKE PALM OIL WHILE A LOSING GLOVE RETREATS AND RUN AWAY

 

BEST REGARDS

Calvin Tan

 

Please buy or sell after doing your own due diigence or consult your Remisier/ Fund Manager

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Discussions
Be the first to like this. Showing 9 of 9 comments

ahbah

Thank you. I now got know oredi.

Action : Follow the glove insiders' action n sell glove stocks like them ? Follow palm oil insiders' action n buy palm oil stocks like them ? Korrect ?

2021-12-18 12:08

throx

Do the opposite of what other people are doing.

2021-12-18 14:38

ahbah

Do the opposite ?

Insiders sell, I buy ?

Insiders buy, I sell ?

Korrect ?

But can I know more than the insiders n go against them ?

2021-12-18 14:49

calvintaneng

Time to consider Palm Oil

Palm oil November results all up because Cpo average price for July to Sept 2021 was Rm4,417 a ton

February 2022 for Palm oil results will be even better because October to November 2021 Cpo crossed World Record price of Rm5,000 & December 2021 average also above Rm4,417 should be the best ever

2021-12-18 22:47

calvintaneng

Since got flood in Peninsula better Buy these Palm oil Companies in Sabah & Sarawak : SOP, TAANN & TSH

2021-12-19 23:08

eric8168

Comfort net cash rm300m lohh

2021-12-19 23:12

eric8168

Net cash per share 50sen loh ..... new virus new demand lohh

2021-12-19 23:16

calvintaneng

Comfort net cash better give all back to shareholders or else further expansion will deplete cash & later face lean times no more money left.

For Palm oil it will be flowing in with lots of Cash like Niagara Falls

https://www.youtube.com/watch?v=R0rU18uPs4o

2021-12-19 23:18

calvintaneng

SOP got Rm760 Million in Cash or more than Rm1.00

2021-12-19 23:19

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