Nice to see Comfort WB moving up again to 41 cents before lunch.

If you do not intend to convert the warrants to mother shares it is not advisable to hold the warrants in the last 12 months of its life.

Looks like Comfort share price is turning and coming up. Good idea to switch from mother share to WB. When the market turns, the warrants ( in fact for all warrants) the return ( in % terms) is much higher than that of the mother share.

I have just swapped a portion of the mother shares i have for WB.

Looking at the price movements today i can safely say that the sellers are basically the weak holders as the decline was gradual. Who are the likely buyers? The major shareholders/ directors/treasury fund. No short-sellers are at work.

These buyers also trade for themselves so they will off-load at higher prices once they are done with the buying.

Don't panic. The prices will definitely recover in due course.

The market consensus is that Comfort's fair value is about RM3.50. With that mother price, then the WB may go up to as high as RM1.50 each.
We are all going to get excited again soon with Comfort. Haha!

The sales for the next 3 quarters are based on those that Comfort clinched last year with high ASPs. So we can expect the profits for the next 3 quarters to be at least as good as the last quarter ( which was record-breaking), if not better. This will have positive impact on the price of Comfort shares.

After the 1st quarter of next year, the ASP will come off but because of the new Covid variants, the ASPs will not "fall off the cliff". The ASPs will gradually slide downwards. With the expansion of capacity, and with higher sales volume, the impact of the sliding prices is likely to be cushioned by higher orders which will still bring about higher level of profits.

No factories would want to increase their production capacity ( and incurring huge capital expenditure) if the operators cannot foresee earning higher level of profits.

In any businesses, product ASPs can come off when there are more players. That is normal. It is up to the individual factory to be more efficient and creative in product design to ward off competition.

It seems many of the research analysts are so easily taken away by the dropping ASPs that they make no effort to look at the bigger picture. Or there is herd mentality among them.

ASPs is only one thing, increasing level of profits is a much more important factor to look at.

All businessmen will tell you the same thing: they all strive to increase the profit level in their companies.

If i remember correctly the synficate moves the share price quite significantly every 2-3 months. So if you carefully trade in this counter, you shld make some money every quarter.

But you need some little skills in buying low and selling high which is not found in everybody. Nevertheless, practice makes perfect.

Just starting to move now.
I bot more WB at 40 cents this morning.

It is very clear that if the mother does not go above RM2.30, no WB holders would want to convert to mother shares and Comfort will miss raising and collecting the RM400 million for their kitty.

Comfort Gloves WILL move the mother share to above RM2.30.

It looks like the mother share is being supported at RM1.90 and WB RM0.40 level. I am not surprised if the syndicate is preparing to push up the prices anytime now.

Good luck.

Some people cannot add or subtract accurately. The closing price today was RM1.94. Dividend is RM0.04 cents. So the theoretical ex-div price is RM1.90. Where does RM1.70 come from? Have to ask the school kids.

Sorry RM3.50 x 1.10 - RM2.30 = RM1.55.

From my years of experience in playing with convertible warrants: conversion price + 1 warrant is easily 10 to 12,% higher than the mother share.

If mother share is RM3.50 then the WB is likely to be RM3.5 x 1.10 - RM2.39 = RM1.55.

The ASP for next 2 qtrs shld still be high as the order was locked in last year so the mother share can still go beyond RM3.00 next 6 months as Comfort can still show profit growth.

At RM3.00 for the mother share the WB shld easily go back to 60 cents. I took the chance and bought some at 38.5 cents just before the close today.

The pandemic not likely to go away completely so soon. The demand will be more as people are more conscious of physical contact.

Those who chased WB up to 58 cents this morning is now down by 1/3 already. The syndicate can be very shrewed at times.

The WB was overvalued this morning . The mother price must go up so that WB price will be supported.

A couple of months back the mother shares moved from RM1.87 to RM2.35 within 3 days. It then dropped to RM2.15 before the syndicate pushed it to RM3.04, all within 7- 10 days. The syndicate is strong enough to move the counter. During that period of abt 4 weeks, in total, JPM was no where to be seen so the shares were not shorted.
From there one can easily tell that to bring it from the current price of below RM2.00 to RM2.30 is chicken feed for the syndicate.

When the syndicate wants to buy back the mother shares at low prices they will leave it to JPM to do the dirty job of bashing the prices down.

So if you are not caught at the wrong end of the stick, you are ok.

The simple stock market advice is " see where you are walking" and you will be alright.

If you buy now at RM1.97 you can easily make 33 cents pe mother share.

They have to push the mother share higher than RM2.30 or else no one wants to convert the WB to mother share then Comfort cannot raise RM400 million from the warrant issue exercise. You think they want to forgo the RM400 million? The choice is obvious, right? Its common sense.

At this point the safer bet is to buy the mother share which is starting to move.The WB has jumped too much. I strongly believe the mother will hit RM2.30 to RM2.50 anytime now.

Everybody laughing all the way to the bank!!

Comfort WB limit up opening price oday at 60.5 cents!! Bravo!

Wow! Comfort WB likely to trade at 30 cents each at the opening bell this morning.

The mgt of Comfort issued the.convertible warrants with the aim of raising abt RM400 million to finance their expansion plan. RM2.30 + 1 WB = 1 new Comfort mother share. The warrant owners with the right frame of mind are not likely to convert the WB to mother share unless the mother share price is above RM2.30. Because it is cheaper to buy rhe mother share which is now only RM1.96. I strongly believe the mgt will push up the mother share price above RM2.30 soon after the listing of WB.

So today is the last day to buy the mother share at an attractive price.

All the best, brothers and sisters in Bursa.

Am i correct to say that

1 Comfort warrant + RM2.30. = 1 Comfort mother share.

I am too lazy to read the prospectus.

Yes. It will be credited into your acct.

I have no time checking it up. I strongly believe it is them.

Can anyone tell who are the people buying up Comfort shares last few days? The major shareholders mopping them up?

Looks like Comfort will hit RM2.60 by 4.45pm today.

So i was spot on. It is RM2.47 now.

Looks like a 1-day show again but no worries, it is a deeply undervalued stock. Sit and wait, the price will eventually come up to our expected levels. Be patient and all will be rewarded. Cakang putih one, can clearly see it coming.

If the shorties don't come to disturb, all the glove counters would be much higher now and Comfort shld settle around the RM4-RM5 level.

What we need is more people to understand the fair value of Comfort and they will come in droves to buy up the shares.

There are reasons to believe that Comfort will continue with the rebound tomorrow.

RHB Research showed that the single digit PE multiple for glove sector is probably the lowest compared to other sectors in Bursa. This sector is among the most profitable sectors and for this SIMPLE reason the glove sector is very undervalued. In simple terms, the current prices of glove counters especially Comfort Gloves are at a DEEP DISCOUNT from its fair value.

Its a matter of time before more market players realise that the current Comfort share price is VERY VERY CHEAP.

RHB Research conservatively valued Comfort at RM2.60.

Remember that there will come a point when it is not worth short selling as the downside is limiited and what would they do instead? They will buy up at low prices and then they push it up to sell.

Short sellers want to make money by pushing the prices down and ALSO make money by pushing the prices up.

For that simple reason, there is nothing to panic if you still believe in the fundamentals of Comfort.

Now you can go back and sip your coffee.

Have a pleasant day.

In business, " last one to come will be the first one to die". That is normal and is expected.

I tend to believe that the next round the price will hit RM3.80 to RM4.00. The last round it was RM3.04.

There is not much time for rhe syndicate to push it down to collect. As it gets nearer to the EGM more people will buy up Comfort because the bonus iissue s attracting more people to invest in Comfort shares.

This is JUST SIMPLY LOGICAL.

Syndicate finds it hard to push price down to collect because there appears to be a competing buyer for Comfort shares at low prices. This lend support to the share price.

Sit back and sip your coffee!!

Glad to see it turned green so soon.

If they push it hard enough, it may hit our first target of RM3.00 by end of rhe day. You never know.

Good luck to all.

I tend to believe the syndicate who pushed it to sell up to RM3.04 last week has used up all his ammunition. As trader the syndicate has to push it down to buy before he can push it up again to sell at even higher price like RM3.80 - RM4.00 when Comfort announces the ex-bonus date and conversion rate.

Just buy when they push the price down. Afterall it is still cheap at this price and knowing well they will push the price up anytime soon.

All the best to all.

I missed it early in the morning when it shot up to RM2.86. But i was lucky to get a few lots at RM2.79 when it pulled back.

Putting in some effort just for fun and hope to get free lunch for the day.

Just a slight push and it will hit RM3.00 by the end of the day. The Lau family is capable of doing it!

Anyway, its a good start to the week.
Enjoy your day.

In any investments there will always be some who are born winners and some are born losers. These two small groups of investors who are either sheer lucky or unlucky. The rest are like most of us here who have to work hard to be winners and i strongly believe most of us are going to reap the rewards soon for believing in ourselves and having the perseverance.

I have this strong feeling that Comfort is going to jump 1st thing tomorrow morning.

Sleep well tonight as things gonna be alright.

See you at 9.00am sharp.

I can see that the sour grapes will turn very sour by next week.

If the gloves turned out to be stolen goods, very soon the supplier will be behind bars in Sg Buloh for "gloves laundering".
Don't worry. News of this nature will not adversely affect Comfort's share price. It is still on course to breaching the RM3 level next week.

It is possible that gloves are sold cheap through on-line shops. But there is a strong possibility that the gloves are either stolen ones or they were given to charity for free and the on-line shops are helping them to sell at basement prices. I very much doubt they bear the established name like Top Glove, Kossan or Comfort.

Can anyone check that out?

If Comfort share price cannot break the RM3 level it either means most of the players are not wearing proper glasses or they are blind.

No worries. They will get their eyes checked and come back chasing after Comfort shares later on at higher prices!!

Have a pleasant Sunday

JohnFarmer's numbers make sense. Tks for sharing, bro.