We're looking at pre-COVID prices right now. This price doesn't reflect Hartalega's increase in capacity in the next 3 to 4 years and it is expected that ASPs will be higher than pre-COVID levels as countries start to give more attention towards health and safety.
Hartalega's clients are those who care about quality and China is Top Glove's main competitor. Hartalega should be able to cement its position as a leading manufacturer with its patents and many innovations.
This stock isn't for gambling, it is for value investing. You're looking at a forward PE of about 20x at this current price and this is based on its pre-COVID production capacity. If you start factoring the rest in, PE should be about 15x, which is lower than what Hartalega is normally traded for pre-COVID.
I don't think there's anything wrong with the management driving Lamborghinis as long as they are producing results. Management should really expand operations or the cash they are sitting on makes no sense.
If anyone has a chance to meet the management, please ask them what's their expansion plan because they are hoarding too much cash. They aren't catching opportunities. It is a fundamental stock, but growth isn't as much as before.
I still don't understand. Some rumours flying around Karim is involved and when Serba Dinamik was in trouble, ESCERAM fell. Serba Dinamik is up and this stock is still down. How irrational are investors?
@HamsterHuat If they sold below 5%, they need to declare that they sold. From then, they no longer need to declare if they sell. Look at KWAP in Serba Dinamik. They might have sold even more but they don't need to declare.
@Sunshine123 From publicly available information, Karim doesn't have any stake in ESCERAM. Only people related to him have stakes in it and they haven't been disposing since last week. If they are buying, they aren't doing it aggressively. They have been quiet thus far, same for the directors of the company.
18% of shareholders own 100 to 1,000 shares. 54% own 1,001 to 10,000 shares. 23% own 10,001 to 100,000 shares. This is from the 2020 AR and it might explain why it has been dropping. R&R holding 16.57%. Mr Wong owns 13.06%. Kamal Tan owns 2.6%.