Anybody has any idea if the company is currently allowed to be operating at how many % of its factory's capacity? 10%, 60% or ?

Thank you, guys, for the compliments. It is my usual style to back up my case/points with facts and figures. Like that, it will sound more balanced and convincing.

My sharing is meant to provide another viewpoint of consideration for our forumers. To make any investment decision, we will need to do our own due diligence.

New warrant was listed on 6/7 at 30.5 sen. Yesterday(23/7), it closed at 71 sen. This represents a whopping 133% increase. But if we look at the mother share. It just rose from RM 1.94(closing price) on 6/7 to RM 2.09(closing price) on 23/7, a mere increase of 7.7%.

What a clear mismatch! I can see big, fat frogs jumping on the street for people to catch. But beware, catch at your own risks.

Ahahah - Better stay away from this speculative warrant game. If you really see value in Comfort, you should invest in the mother share instead!
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Ahahah I just can’t understand why WB can move up so much as compared to mother shares.

Rubberex has stopped declaring half-yearly dividend payments after financial year ended 31 Dec 2019. The following announcement was the last dividend payment:
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3007980

I do not have the reason why. I suspect it could be due to the dire need to preserve cash for its capacity expansion. Once the management has carried out the capacity expansion as planned, we would expect management to resume dividend payments.

Another reality check:

Closing prices as at 23/7/21:
Rubberex - RM 0.96 or 1.92(original pre-bonus issue price)
Comfort - RM 2.09
Careplus - RM 2.18

Tide has changed immensely in favour of Careplus, which has outperformed the rest since my last posting.

What has happened during the review period?
1. Careplus has completed its private placement exercise;
2. Comfort has listed its free convertible warrants;
3. Rubberex has set its private placement price at 80 sen and is looking to place out its shares.

Now, Rubberex is the cheapest in terms of its share price. Even so, it is hardly trading at below 90 sen, way above its private placement price.

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John1234 Jun 21, 2021 10:18 AM

If you check back my previous posting on 6 May 21, I had mentioned that Rubberex, Comfort and Careplus were like 3 musketeers, trading at about the same prices:

Rubberex - RM 1.13 or 2.26(original pre-bonus issue price)
Comfort - RM 2.24
Careplus - RM 2.23

Look at the prices now:
Rubberex - RM 1.02 or 2.04(original pre-bonus price)
Comfort - RM 2.08
Careplus - RM 1.74

So, we can see that Careplus has dropped the most during the corresponding period. Rubberex lags slightly behind Comfort currently.

Without doing homework, we cannot make a meaningful comparison.

Like anyone, I have the same thinking too. At the same time, I do not prejudge:
1. Well, it is still early days of this race for a digital banking licence. Nothing substantive until early 2022 probably.
2. Rubberex is still currently fully committed to gloves manufacturing and distribution. Any other form of collaboration is outside its primary focus.

Who knows? Major shareholder Ong Choo Meng may come up with something out of the box for Rubberex in time to come.
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neutralist hahaha. what synergy? if there is any benefit at all it will only benefit hextar. nothing about digital banking can be linked to rubberex. it will only makes it easier for them to raise debt via its own digital banking platform, or allowed payment via digital banking which all fees shall goes to hextar because the pie and consortium is joined by hextar lol.

Some of you may not be aware that Rubberex's major shareholder Datuk Eddie Ong Choo Meng is also the executive director of Hextar Global Bhd. His company is currently engaged with a consortium bidding for the Malaysia's five digital banking licences.

"With a platform of eight listed entities within the larger Hextar group of companies which are involved in a wide range of industries such as agriculture (agrochemicals and fertilisers), healthcare (rubber gloves), telecommunications (fibre optic cables), renewable energy (solar), logistics and consumer products, we are able to provide access to layers of thriving ecosystems which could be tapped by the bank. Hence, our excitement at being part of this collaboration,” he said.

Let's see if Rubberex has any chance to benefit from any synergistic collaboration.
https://www.theedgemarkets.com/article/hextar-joins-consortium-establish-digital-bank

I won't be surprised if some punters or naysayers have started chasing quietly behind us this morning at the spur of the mkt operator. Of course, some can still be hesitant on "crying wolf" worries - already 3 times in a row.

Like it or not, Ong Choo Meng is the happiest person today. His wealth on this counter alone increases by 8.4% or RM 23.4m this morning.

Ong Choo Meng is no fool. He knows jolly well that the fund raised from the placement shares will help to fund his expansion plan. So, by hook or by crook, he has to prop up the share price way above 80 sen to make the placement shares exercise a success.

By the sheer number of shares he actually owns(37.241%), every 1 sen drop in the share price means a lot more to him than any of us.

Pre-holiday shake-out again...
https://www.theedgemarkets.com/article/klci-closes-lower-amid-profittaking-line-weaker-regional-markets

With the private placement issue price fixed at 80 sen per share, market is keenly watching for 2 things:
1. Who would be the purchaser of these placement shares?
2. When will the major shareholder Ong Choo Meng start to "deal" in his shares, given his intention to do it?

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3176150
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3176037

KUB Malaysia is usually locked in small price movements. The only times we can expect a good play by the mkt operator are the price spikes immediately before or after the release of some good news like an asset sale, good corporate result, etc.

Most of the times, mkt operator knows the timing of the news better than we do.

I was waiting for the price to drop below 42.5 sen yesterday. It did not. Instead, it went up to close at 44.5 sen.

Catching a falling knife is always the greatest fear for some. But it can be an equally elusive experience to catch the bottom too.

Hon Hai buys 5% stake in DNeX — what’s next?
https://www.theedgemarkets.com/article/taiwans-hon-hai-emerges-substantial-shareholder-dnex

Today, glove counters had a pretty good showing, helping KLCI index to close above 1,520 points.

Mkt operators are playing a mind game with us. After "crying wolf" in the last 2 attempts, more are inclined to think that this could be another one-day show.

Will it be? That will depend on their game plans. We shall find out tomorrow.

History has shown that any short-term major price correction is usually a good buying opportunity to sell on a rebound. Mkt usually rewards participants for bold (buy) actions taken during an abnormally depressed mkt condition.

To invest, we should monitor the daily trading vol, our political developments, on-going Covid cases and vaccination progress,

https://www.theedgemarkets.com/article/bursa-malaysia-sees-political-and-covid19-woes-creating-shortterm-volatility-stock-market

Share price is, to a great extent, dictated by actions of the market operator. When market is bad, mkt operator is likely to bring the share price down to reflect that. So long as this is not accompanied by an abnormally large sell vol(by the insiders), it is viewed as a normal mkt response. When market condition improves, we can expect to see a rebound.
https://www.theedgemarkets.com/article/bursa-malaysia-sees-political-and-covid19-woes-creating-shortterm-volatility-stock-market

After one big merry-go-round circle, KUB Malaysia is back to square one at 58.5 sen again. For some, this can be rather frustrating. But, if we compare it to the steeper drops of mkt favorites such as steel counters, this is perhaps an offsetting consolation for being a laggard.

Since the last asset sale of 2 oil palm lands for KUB Malaysia, we have yet to hear from the company of any further asset disposals. With CPO prices projected to hover between RM3,000 and RM4,000 per tonne this year, finding a buyer with the right price should not be too difficult. Look at TSH Resources, it has just clinched an oil palm asset sale deal.
https://www.theedgemarkets.com/article/tsh-resources-sabah-oil-palm-asset-sale-good-deal-%E2%80%94-analysts

I am still holding it. Waiting to average down my holding cost.

Market is bad currently due to a variety of negative factors such as political uncertainty, EMCO and higher Covid cases reported.

It is full of cheap bargains at Bursa these days. Be it steel, technology, glove, etc. Bargain hunters can take time to pick and choose what to buy for the next mkt upswing.

Afif95, sorry, I do not have a crystal ball. Things are evolving so fast that it is almost impossible to predict what is going to happen 5 years later.

A company-issued warrant is usually a bullish bet on the underlying mother share.
In a bull mkt, it can do extremely well. But in a bear market, it can fare very badly.

Even though the warrant is expiring in about 5 years' time, the warrant price will start to factor in more of the time decay of the warrant at least 1 year earlier.

So, it can be a risky bet for the newbies, not knowing the implications involved.

Mkt is full of cheap bargains these days. Be it steel, technology, glove or otherwise. Bargain-hunters can afford to take time to pick and choose what to buy for the next mkt upswing.

With political uncertainty and EMCO, any price rally tends to be short-lived in nature. Not only glove counters, recovery plays like steel counters have pulled back at least 35% generally from the high this year.

With political uncertainty and EMCO, any price rally tends to be short-lived in nature. Not only glove counters, recovery plays like steel counters have pulled back at least 35% generally from the high this year.
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John1234 Jun 28, 2021 10:39 AM
Mkt is full of cheap bargains these days. Be it steel, technology, glove or otherwise. Bargain-hunters can afford to take time to pick and choose what to buy for the next mkt upswing

Regional markets are moving higher this morning on US mkt's lead last Fri. But KLCI index is down, with a market breadth ratio of about 2 losers to 1 gainer. Market sentiments are still poor overall due to a variety of factors, eg political uncertainty, EMCO and higher Covid cases reported.

Funds decided to take profit this morning on the index-linked glove counters that they pushed up last Friday. Rubberex also closed lower this morning.

Glove counters may need a much stronger catalyst to move up higher nowadays.

Today, some funds were rotated into the index-linked glove counters to prop up the KLCI from dropping below 1,500 pts. It is still too early to tell if this is a sustained rally for glove counters yet. Got to see the closing today and next week.

I have always said that mkt loves to reward players for bold actions taken during an abnormally depressed mkt condition, like yesterday.

80 sen has proven to be a good support for the time being too.

Dividend payment is like drawing cash out from the company's cash reserve. Share price has to be adjusted for this change.

In a bull mkt, adjustment will be less. But on a bad mkt day, adjustment will be more.

Despite the very fact that the big 4 glove counters are hit by the closures of factories in Selangor due to EMCO. 2nd-tier glove counters(ie Comfort, Rubberex and Careplus) did not stand to benefit from this particular news at all today. Rubberex and Careplus closed slightly lower and Comfort closed unchanged, supported in a small part on the last day of cd.

Why? In the eyes of mkt operators, all glove counters are treated just like one big family and prices usually move in the same direction.

thlim123, be careful. I can see that the high trading vol is being created by the mkt operator to offload his freely alloted warrants.

Same way of operating like the speculative penny stocks. Nothing new...

Haha, if we see value in Comfort, we should buy the mother share, instead of the overpriced warrant.

Comfort new warrant - Pump and dump?

Much like a right issue or a private placement, issuance of free convertible warrants serves as yet another available avenue for management to plan and raise sufficient funds to meet mid-term operating requirements.

Since it is given free, it is always viewed positively by the mkt. This is one area Rubberex management should explore near-term to enhance shareholder value.

Today, Comfort listed its free warrant at Bursa. But, it failed to provide a much-hoped-for catalyst to the glove counters(including Rubberex). Instead of pushing up Comfort's share price to match its exercise price, mkt operator chose to prop up its out-of-the-money warrant at a ridiculously high price:
Comfort's closing price today: RM 1.94
Comfort's warrant closing price: RM 0.305

Apparently, there appears a current mispricing of either the mother share or its warrant. How should mkt interpret this? Does this high warrant price suggest the mother share is underpriced currently and its share price will eventually exceed the combined exercised price within the next 5-years? Or the warrant price is artificially inflated by the mkt operator for a pump and dump?

Whatever it is, only time will tell. But one thing for sure, mkt can be more sophisticated than we can ever imagine possible!

STDN237649, your thinking is just being too "normal" and mkt can be more sophisticated than we can imagine.

Look at the share price movement of the glove counters in the last 2 months or so, they have been pressed down almost continuously to levels hardly imaginable(below fair values?). The fear of a falling knife has deterred many from active buying and bargain-hunting. As a result, I can see that a path of least resistance has since been created in the process. If they start pushing prices up with sufficiently large buy bids, some punters and technical traders out there will be attracted to jump in. Moreover, they may also create a short squeeze(short-covering) on the existing short bets, driving prices up too.

Mkt operators are no ordinary small players. They can play long or short based on their overall game plans and their own assessments of the "real" mkt conditions. Their only "valid" consideration is what they have got to gain by pushing up and if there is enough incentive for doing so.

Even if they were to do it, my guess is they would probably do it within their perceived "safe" zones, outside the "selling" range of most retail investors.

For a share price to go up, we will need a catalyst. Sometimes, this may come from a competitor firm on the basis of comparative pricing.

Next Tue, Comfort will be listing its free new warrant:
Comfort's closing price today: RM 1.98
Warrant's exercise price: RM 2.30

This would mean the warrant is practically out-of-the-money as at today's closing price.

Will this give an incentive for its operator to push up the mother share? And to do this in a much more convincing manner, it can act jointly with the other glove counters.

Whether any show or not, we shall find out next week...

Major shareholder Ong Choo Meng hopes to expand gloves production capacity aggressively to make up for a drop of revenue from a falling ASP. Given current mkt conditions, he resorted to an easier option, a private placement, to raise the required funding, instead of via a right issue(which may not be welcome by the mkt either).

Is his expansion plan a good move? Mkt has voted unfavourably on its share price. By benchmarking Rubberex share price against its closest peer Careplus's(which never closed below RM 1.60 in recent weeks), 80 sen seems a good support for Rubberex for now, pending further developments.

Let's see......

This morning, some funds rotated into the top 4 glove counters to prop up the badly-beaten glove sector as well as the KLCI index. 2nd-tier glove counters got a boost too. Rubberex is 90 sen at this morning closing.

Mkt usually loves to reward participants(eg TheContrarian) for bold actions taken during an abnormally depressed mkt condition.

Wow, this is yet another tell-tale sign that mkt is so bad and the promoter has come here to promote the already over-priced MR DIY counter!

Mkt is full of cheap bargains these days. Be it steel, technology, glove or otherwise. Bargain-hunters can afford to take time to pick and choose what to buy for the next mkt upswing.

Mkt operator planned it all. Those who chased Comfort on the last day of cb(entitled for free warrants) last week were made to pay a much higher mkt price for it.

Currently, political uncertainty is perceived as the greatest mkt risk for Bursa and mkt operators are exploiting on the poor mkt sentiments to whack down prices.

Seriously speaking, the whole Bursa mkt is being plagued by political uncertainty more than anything else. Buying interest is very low for most counters. The private placement issue just gives Rubberex operator more excuse to press down prices.

The mkt is keenly watching as to when major shareholder Ong Choo Mehg will act to defend the share price. Only a heavyweight buyer is deemed more capable to counter the deliberate pushing down by the operator.

As I see it, it is no more a tug of war between the mkt operator and the smaller investors if the share price drops below RM1. Major shareholder Ong Choo Meng has more reason to act to support his share price if he still wants to instil confidence for the private placement shares and have a good offer price.

Newbie5354/DevKrishna,

If you check back my previous posting on 6 May 21, I had mentioned that Rubberex, Comfort and Careplus were like 3 musketeers, trading at about the same prices:

Rubberex - RM 1.13 or 2.26(original pre-bonus issue price)
Comfort - RM 2.24
Careplus - RM 2.23

Look at the prices now:
Rubberex - RM 1.02 or 2.04(original pre-bonus price)
Comfort - RM 2.08
Careplus - RM 1.74

So, we can see that Careplus has dropped the most during the corresponding period. Rubberex lags slightly behind Comfort currently.

Without doing homework, we cannot make a meaningful comparison.

Over the past 2 weeks, mkt operator has not attempted to bring Rubberex down lower than RM 1(a temporary bottom for now).

Mkt is very dynamic and evolving. With Fed Reserve starting to forecast 2 rate hikes in 2023, funds have started to reposition their portfolios to prepare for a rising US $ and a less dovish trading environment. With this new development, we could expect ringgit to weaken against the US $ near term and this is likely to benefit our export sector in general(which also includes the cash-rich glove sector).

A share price is usually dependent upon a number of counteracting factors at play. It is interesting to see how things work out in such a dynamic trading environment, much like how virus variants could mutate.

It is always prudent to do our own homework before investing!

Market is weak, but this counter has demonstrated resilience to buck the general trend, supported by 2 positive catalysts: impending transfer to main-board listing and a sudden drop of copper(raw material) prices, after Chinese crackdown on commodity prices in the past week.

Interesting to see how it fares in the coming weeks.

KUB Malaysia has taken a long while to break above the 62 sen resistance. It has to stay firmly above 62 sen for the breakout to be effective.

The operator is obviously testing the investors' patience.

There's a pick up in its trading vol and its share price today. Hopefully, it has moved out of its recent consolidation phase.

Rubberex had staged a strong rebound from a low of RM 0.995 on 31/3/21 to a high of RM 1.56 on 19/4/21, before collapsing down to yesterday's close of RM 1.06.

The selling pressure appeared almost non-stop to force this price collapse. However, this does not seem to tally with my findings from the Bursa websites:

Resale of treasury shares: RM 1.51 to 1.56(19/4/21)
Shares sales by Dato Ong Choo Meng: RM 1.4092 to 1.4448(20/4/21 to 22/4/21)
RSS volume: 480,000 shares(4/6/21)

What has happened then?

My reasonable guess is the Rubberex operator has capitalised on the current weak sentiments of the glove sector to press the prices down. But, as time went by and prices pushed lower, the operator has encountered some resistence too. This is clearly reflected on the much lower trading vols and the price gaps. Eg for the last 2 trading days, less than 9m shares were traded with a 3-sen drop only.

If trading vol is any helpful indication, it does suggest prices are bottoming out and another "oversold" rebound is within sight(if further helped by a positive catalyst). This is especially so, when the share price is retesting its March low.

Not a buy or sell recommendation though. Do your own homework.
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Sneakpeek I'm so free right now i give glover simple analysis haha..

10 days ago

1st tier
TG 5.48 now 4.90 down 10%
Kossan 4.40 now 3.76 down 14.5%
Harta 10.06 now 8.57 down 14.8%
Supermax 5.10 now 3.92 down 23%

2nd tier
Rubberex 1.32 now 1.06 down 19.7%
Comfort 2.50 now 1.99 down 20%
HLT 1.19 now 0.90 down 24%
Care+ 2.87 now 1.84 down 35%
04/06/2021 6:25 PM