Given a likely oversupply scenario for the gloves market, it is no surprise that Rubberex diversifies into a new venture to create another income stream.

Spanning 9.536ha of land, the development of the Empire City Mall is ongoing with construction works at 83% completion as at Oct 1. The implementation of the proposed subscription and diversification exercises are expected to be
completed by early 2022. Given that our economy is reopening up, we could expect better occupancy rate and more human traffic at the mall next year.

At this moment, there is nothing much we can comment on this new corporate development.
https://www.theedgemarkets.com/article/glove-maker-rubberex-ventures-property-investment-strategic-stake-empire-city-mall-pj
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3198170

Wow, US mkts are getting so volatile these days. Dow can easily go up or down a few hundred points a day...

As we usher in the month of October today, do expect a more volatile month for stocks(esp blue chips and high flyers like tech stocks).

So, my concentration will be on my other counters in my portfolio.

Of the big4, I reckon that Rubberex mostly follows Supermax's price movements. Hope that Supermax is a good leader to follow...

But today is a Fri. I am not too hopeful of any strong performance. Hope I am wrong on this.

Who knows later some IB analysts may come up with a re-rating on the glove sectors, citing these 2 pieces of news: China's electricity crunch + no windfall tax?

A possible scenario, but no guarantee.

Of course, we should not buy on hopes. But for the existing shareholders, that is not too much to hope for..

Glove counters had been sold down partly because of this rumoured windfall tax. Now, with this confirmed news of no windfall tax, it is natural that glove share prices would be factored in with this good news..

Of course, some traders might be tempted to take profit after such good gains within days..

Glove counters are flying now. Suddenly, Rubberex operator released the lever...

No plans to impose windfall tax on glovemakers, sectors that made extraordinary profits during Covid-19 pandemic, says Tengku Zafrul
https://www.theedgemarkets.com/article/no-plans-impose-windfall-tax-glovemakers-sectors-made-extraordinary-profits-during-covid19

It pays to read widely, eg read other forum thread postings. I was rather "amused" by the following posting at Hartalega thread:

IdleMoney66 After few weeks you will see news titled
" China cut power usages, manufacturing suffer and reduce production. Directly benefit to local glove sectors "
" USD is strengthened, Benefit to those exporters " Directly benefit to local glove sectors"
" Klang Valley back to normal, manufacturing operates normally and increase productivity" Directly benefit to local glove sectors "
30/09/2021 10:51 AM

IdleMoney66 Of course, besides of glove industry. You still have opt to go for others export industry
30/09/2021 10:52 AM
---------------------------------------------
Strictly for illustration purpose. Not a buy or sell recommendation. Do your own homework!

I was told some naysayers are quietly buying and trading glove counters now. What a joke!!!
=================================================================
John1234 The rebound has gathered momentum. I really pity those who were played out by the operators selling their big4 cheap at the operators' mercy yesterday, instigated by some naysayers at their forum threads, hoping to collect dirt cheap.
28/09/2021 12:03 PM

Shorties and technical traders..
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Jack King Who is buying?
30/09/2021 10:24 AM

Hopefully, with this already falling ASP for gloves prices + capacity restrictions as a result of China's electricity crunch, gloves market can work its way to balance out and reach a new equilibrium for the gloves over-production issue.

Only time will tell how this issue will evolve eventually...

This news of China's electricity crunch has been around for a few days already. But our gloves market operators just made use of other negative news(eg deliberate free falls of the big4, Dow's slump, etc) to whack down glove counters, lol.

Well, I have said it. China's gloves industry is surely affected. That is why we see a rebound in our glove counters..
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China’s electricity crunch is latest supply chain threat to world. Our glove counters benefit at their expense...
https://www.theedgemarkets.com/article/chinas-electricity-crunch-latest-supply-chain-threat-world

Anyway, US mkts are expected to rebound tonight. Maybe, it would be a better mkt day for tomorrow. Meanwhile, life goes on...

Without SBB, it is just a one-sided show by the Rubberex operator, very boring! I turn my attention to my other counters in my portfolio - surprisingly, I can see a few greens among the reds. That's the beauty of a well-diversified portfolio.

Wow, the Rubberex operator is treading very carefully, so as not to touch the SBB redline, unless absolutely necessary. For the whole morning until now, he was still able to churn out a total traded vol of 3.2m shares, to meet his daily KPI target. What an achievement though, lol!

Anyway, glove counters are now off the day's lows...

Actually, I had expected glove counters to gain for the 2nd day. But, just too bad, US mkts were down sharply. Glove sentiments got hit too...

Kingbeast, there are obvious reasons why Hartalega performed the best today:
1. It had been dropping for days. Usually, the more the share price drops, the better would be the rebound;
2. There could be a considerable amount of short-covering today.

I have said it. Rubberex's intention for the SBB is to stabilise its share price, rather than to push up its share price anyhow. In fact, Rubberex's share price today(done mainly between 60 sen and 62 sen) was bid up by the operator on improved market sentiments for the glove counters. Given that the share price did not fall much lower, I am not surprised that Rubberex's management did not do any SBB today.
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Kingbeast Today no SBB - Will Ruberex continue to go up? What if stuck at 0.62 for the next whole year?

Hopefully not. I entered at 0.59. Please please
28/09/2021 6:38 PM

Hartalega is soaring today...

China’s electricity crunch is latest supply chain threat to world. Our glove counters benefit at their expense...
https://www.theedgemarkets.com/article/chinas-electricity-crunch-latest-supply-chain-threat-world#

The rebound has gathered momentum. I really pity those who were played out by the operators selling their big4 cheap at the operators' mercy yesterday, instigated by some naysayers at their forum threads, hoping to collect dirt cheap.

Hartalega is leading the rebound this morning! A lot of people fail to understand that if the glove counters keep dropping and you guys keep throwing "unwanted" glove counters to them. Will the operators be so dumb to simply "accept" them and become the biggest wholesale "trash-collectors" in town? Lol...
=================================================================
John1234 This morning, glove counters staged a mild rebound. The free falls of the big4 yesterday were done deliberately by the operators to pave the way for the rebound this morning, lol....

This morning, glove counters staged a mild rebound. The free falls of the big4 yesterday were done deliberately by the operators to pave the way for the rebound this morning, lol....

I personally see this as an added strength that Rubberex has over other glove counters. It can potentially tap on support of a bigger complementing framework.

“The Nobel Group, with its in-house research and development (R&D) capabilities and years of experience in R&D initiatives in practical applications of polymers in the rubber industry, produces proprietary formulations with a focus on rubber and/or rubber related products such as high-performance custom-made anti-tack rubber lubricant and coatings. Its customers include some of the world’s largest rubber glove manufacturers. The Nobel Group continues to endeavour in its R&D initiatives to develop breakthrough technologies for gloves and its manufacturing processes,” Hextar Global added.
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https://www.theedgemarkets.com/article/hextar-global-executes-rm50-mil-financing-facility-fund-nobel-group-buy-its-specialty#

Correction: SBB price range: 57.5 sen to 62 sen...
=============================================================================
Jonathan Keung SBB betw 20 Sep to 27 Sep { range from 58-60 sen }
28/09/2021 7:06 AM

After 6 days of SBB so far, I would say that Rubberex's intention for the SBB is to stabilise its share price, rather than to push up its share price as somebody had predicted earlier. This is yet another demonstration of Rubberex's prudent management approach.

Why do I say that? So far, Rubberex management has only used up 4.01850% of the 10% maximum mandate allowed. Had it pushed harder on the SBB, the share price would have been higher.

Come to think of it, Rubberex management had issued about 10% PP shares at 80 sen per share. So, this SBB can be viewed positively as buying back the company shares at a good discount. In this sense, the company wins on this.

On the other hand, SBB reduces the number of outstanding shares(weak hands) in the market. So, the not-so-drastic drop of its share price would also mean longer-term investors would benefit too. Another win.

Compared to the free falls of the big4, this is surely a preferred arrangement.
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Blacksails Selling pressure is still there so SBB may be futile later when SBB stopped. Nobody wins.
27/09/2021 11:00 PM

Yes, SBB still today...
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3195610
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John1234 Got to see if the company carries out SBB today. It can be halted or paused for any reason, eg if they perceive they can buy back the shares at lower prices, etc, given the market sentiments.

Can't you see that the big4(esp Supermax and Top Glove) are down again today on more short-selling and they are dragging the whole glove sector down?
https://www.theedgemarkets.com/article/glove-makers-remain-red-weaker-growth-outlook#
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GuguGaga Everyday down for this counter. Is there any hope for dis counter to bounce back?
27/09/2021 4:57 PM

Got to see if the company carries out SBB today. It can be halted or paused for any reason, eg if they perceive they can buy back the shares at lower prices, etc, given the market sentiments.
==============================================================
Jonathan Keung What's worrying if the SBB is halted ? The company is buying not the individual owners or major
controlling shareholderss
27/09/2021 1:56 PM

I did not delve into the fundamentals of Pharma and Dpharma. But their TA charts do not look impressive too. Hope you have made a correct investment into these 2 counters. For me, I would say hold cash, rather than going into any investment now.
==============================================================================
Valgrovest Company's share buy back counter productive. Vaccination is progressing very satisfactorily and new cases are dropping very sharply. End of the game for rubber gloves. Move out and start buying vaccine counters like Pharma & Dpharma.

big4 are still in a free fall this morning. So, Rubberex's SBB seems to be stabilising its share price around 60 sen level now....
==============================================================
John1234 Got to see Rubberex's intention of the SBB move - to stabilise its share price or to push its share price higher...
24/09/2021 10:27 AM

Kingbeast, yes, SBB is just a temporary measure. Remember my previous advice to you - Do not get overly-exposed on one single sector?

If you decide to "trade along", make sure you have a trade plan.

I must really compliment Rubberex's management for the SBB, well-executed. The management has waited very patiently for the share price to drop below 60 sen first(amid all the selling due to the poor market sentiments and endless badmouthing) before striking hard to push its share price out of its doldrums.

This has now sent a strong message to the market participants(in particular, shorties and Rubberex operator) - "Do not play play with my counter. I am serious about my SBB". At the same time, other glove companies(esp Comfort) will be very keen to assess if the SBB strategy can work in their own contexts, if they have not fully utilised their current SBB mandate yet.

To be very frank, SBB can never push the share price way too high to bail everyone out of any wrongful investment decision. But it can surely make a marked difference between a winner and a loser here. A winner will assess the situation and make appropriate(corrective) investment decisions, based on this new corporate development. But a loser will keep complaining about the situation and do nothing about it.

Wow, today Rubberex did us proud - up 5.1%.

Kudos to Rubberex management!

Normally, a pre-weekend show can be quite boring. But this time round, I see 2 forces pitting against each other - SBB force vs Rubberex operator. Pretty interesting!

Nowadays, even big4 also go separate ways. As of now, only Top Glove is up slightly. Hartalega and Kosssan are down more and Supermax is down slightly.

I do not rule out any possibility...
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TheContrarian The reason price couldn't stay up is obviously due to continued margin call forced selling.
24/09/2021 10:33 AM

Got to see Rubberex's intention of the SBB move - to stabilise its share price or to push its share price higher...
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Pandu1 SBB will make the price to increase lo.
24/09/2021 10:16 AM

This is a tricky question. I believe the big sell vols would have already been absorbed by the market. If there is no disclosure of any buyers on the Bursa website, then buyers could be owning a less than 5% stake.
================================================================
Way back 6 months ago in April the controlling shareholder sold over 100 million shares at prices above RM1.40. There has been no disclosure of the buyers. Are the buyers' shares been forced sold recently?
24/09/2021 10:07 AM

Another similar example is Hartalega. Yesterday was its first xd day. It dropped 14 sen more on top of its 19.75 sen per share dividend payment. And today, it continues to drop 12 sen as of now. Why? A lot of dividend investors waited very patiently for xd date and only started selling their shares after xd date. Isn't it 因小失大?
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3190839
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I do agree that dividend payment is very good news for the shareholders. But if the share price continues to drop more after xd(like recent examples of Comfort and Supermax), what is the use?
I would prefer the company to do more to support the share price.
23/09/2021 9:26 PM

Well, let's look at the facts to be more objective...

Before SBB, Rubberex used to be extra weak in its share price movements among all the gloves counters as a result of a variety of factors, more notably:
1. Poor market sentiments, especially towards the glove sector;
2. No announcement of dividend payments.

What happened to its share price after SBB was carried out by Rubberex management consecutively for the 4th time this week? I would say its share price was more resilient against a bigger % drop, when compared to other glove counters. Given the current weak market sentiments towards glove counters after Top Glove's recent release of result, SBB helped to soften the blow.

In fact, Rubberex's bonus issue of 2 for 1 last year had actually increased its total number of outstanding shares by 2 times more. So, when market sentiments turned sour, it could work against the share price by having more shares to sell in the market. Without SBB, the share price could have dropped even more.

I do agree that dividend payment is very good news for the shareholders. But if the share price continues to drop more after xd(like recent examples of Comfort and Supermax), what is the use?
I would prefer the company to do more to support the share price.

As for your proposal to do a shares consolidation for Rubberex, I do not think it will be well-received by the shareholders as investors usually have very negative views on any shares consolidation.

Whether Rubberex will take the company private after acquiring more shares at current price levels, I cannot comment much as I am still trying to decipher the company's current move.

I am simply sharing my own personal opinion. I do support Rubberex's current SBB move on its merits. I am NOT a company's spokesman on SBB. Let's hear more from what other forumers-cum-shareholders have to say!

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Blacksails The Boss doesn't care about the other shareholders, instead of giving good dividend he decided to SBB, what a waste of good money when it cannot halt share prices from dropping lower. Better consolidate the shares eg 4:3 if you want to maintain the share price at current or slightly higher price. That's only my opinion to share with those who can comprehend the situation.
23/09/2021 9:26 PM

EPF cuts stake in glove maker Riverstone Holdings for first time on record
https://www.theedgemarkets.com/article/epf-cuts-stake-glove-maker-riverstone-holdings-first-time-record

Why EPF never totally exits Riverstone Holdings? I believe, that is part of its diversification strategy. If the sector outlook is less rosy, just cuts its stake.

Yes, we must always diversify our portfolio. Never bet big on one single sector.
==================================================================
Valgrovest Too bad - already GG for rubber glove stocks. Just move funds to other more prospective stocks.
23/09/2021 12:02 PM

Intra-day, only Rubberex management will know and Rubberex operator might be able to tell. We can only know after market closes, when SBB announcement is made on Bursa website.

With SBB, Rubberex operator will need to act with care, cannot anyhow whack down prices or need to cover back at higher prices, lol.
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Stockhunter88 Sbb again today?
23/09/2021 10:47 AM

From the way we look at it, keown83 must have done a lot of homework on the gloves sector since the Covid-19 pandemic of last year. So, there is no doubt that he would have been one of those that were riding on the super bull run of last year, much like skcm2017(with a 7-digit profit gain), but probably with a much lower gain.

Well, that was in the past and investors nowadays are fully aware that they could not expect any supernormal profit from any glove company this year or beyond, until the next pandemic strikes.

Coming back to the subject of SBB, it just goes to illustrate the concept of "cash is king during depressed times". While I may not feel it is a good idea to go full scale on SBB to fight against shorties or the Rubberex operator, it does enhance the shareholders' value to the extent that the share price does not fall too much lower. This could also give any existing shareholder a choice to exit the counter at a much higher market price, if deemed necessary.

Comfort is just another glove counter where its current market price is trading at below its NTA per share(as at last quarter's report). Some of the "dividend" investors got very unhappy with its 2 sen interim dividend announcement and the share price just drifted lower without support from SBB currently.

My reply is simply focussed on the impact of SBB on a company's share price. It should not be construed as an endorsement to buy or sell on Rubberex. Please do your own homework.

Kingbeast, I would say Rubberex has certain inherent strength as a 2nd tier glove company.

Foker had initially run down hard on Rubberex when he first appeared on this thread. But look at his milder tone after he did his research on the company and came up with his blog essay, he became more restrained!
https://klse.i3investor.com/blogs/the_inquisitor/2021-09-10-story-h1571471306-How_will_a_small_glovemaker_fare_in_times_of_oversupply.jsp

Market has a pricing mechanism for each and every stock. There is always a reason why we pay 59.5 sen for each Rubberex share vs RM 2.67 for each Top Glove share. So, the prevailing share price would roughly indicate how much the company is worth in normal circumstances.

I can see that you are already investing in Top Glove, then you should stay that way. Do not get overly exposed to any one particular sector!
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Kingbeast Ruberex looks like a strong glove company now. Not sure it has drop so much already or what.
21/09/2021 11:02 PM

SBB should be used selectively when the company perceives its share price undervalued, eg when its share price is trading below its NTA per share or fair value. If the company continues to use SBB to push up the share price, then investors would be wondering if the company is more interested in its core business or trading its shares.
=============================================================
sharebuyback SBB until RM 1 why not a good idea? Use Tropicana as example to deter short sellers haha.
22/09/2021 6:47 AM

neutralist, glad to hear from you. Currently, I am in no hurry to add up more, until I see more clarity in this gloves sector and the corporate development. Anyway, I have revealed my main reason for holding on to my left-over portion of Rubberex shares.

In such uncertain times, it is good to preserve cash for any good bargain, should it present itself.