@keown83 beside capacity Rubberex is expanding on fronts of innovation , geographic footprint and more to ensure that their additional capacity will be sold. Also in terms of demand meeting supply in 2022, it could be possible or it could not. Those are just forecast and forecast are not always right. For an instance no one expected ASP to raise so rapidly. Also vaccines are good, they do work to prevent death but covid-19 is still spreadable. Moreover, highten health safety awareness are now a new norm, this is a structural change to the economics of how glove will be used.

I get your arguement on the big 4 being okay to hold long term and I agree with you on that. My view on favouring Rubberex is based on certainty. Amidst all the uncertainty of vaccines, how long covid-19 will last, glove ASP, glove supply and demand, Rubberex capacity will still increase 300% to 10 billion gloves and the management is actively taking measures to ensure it can sell those gloves. That's my bet, my view based on sheer certainty in a sea of uncertainty.

Some my call me wise whole others my call me foolish. Often foolish and wise are one in the same. Only time will tell. Regardless of the results I'm okay to hold because my 80% gains from MMC, stable positions in Jaks, Esceram and my bottom catching of Serba Dinamik more than mitigates my risk of holding to see the outcome. If your portfolio if 100% gloves or Rubberex then I don't think you'll hold to see the outcome.

Cheers,
ValueInvestor20

DevKrishna you can't look at shares from just the price. You need to understand 2 major things. First is the market capitalization of a company which is derived by number of shares times by share price to give the total valuation of the company. Second you need to see the industry price earnings average to sense check the valuations to the company fundementals. Astro has potential as the Disney plus distributor!

Keown83 I personally do not think the market has priced in Rubberex growth potential. They would be hitting 10 billion gloves by mid 2022. That's a 400% increase in capacity to offset any ASP decline. Hence, why I'm holding as I believe the upside is there.

@BuffetOnWeed I've been in many forums on I3 and it's sad that the discussions are most of the time empty, filled with personal attacks and only at times insightful. The discussions here pale in comparison to my University's Investment Society sadly.

I'm hoping i3 can be a place of good discussion, where it is based in facts and the members can take criticism. Glove is not risk free I have to concede but prospects are more likely positive in the mid term (1-3) years.

@Lukesharewalker I'm also waiting for PE 2 but unlike you I would like to differ my angle. Their capacity expansion to 10 billion gloves by mid 2022 will definitely bring it below PE 2 and that's putting the stock at RM 1.60 based on RHB's current forecast with 2.5 billion gloves to 2023.

Hi can't seem to tag my recent blog post to the forum but do have a read.

https://klse.i3investor.com/blogs/2_Cents/2021-05-31-story-h1565984768-RUBEREX_7803_A_Hidden_Gem_with_a_Secret_Weapon_Massive_Capacity_Expansi.jsp

AhChong01 I referred to the segmental section of the recent QR to derive the value.

Will take time. Just like how we have gotten used to the new norm so has the market players. Will be hard for gloves to hit limit up like those days. But rest assured, Rubberex fundementals are good. Having over 80% exposure of its business in Malaysia, high cases here will lead to robust demand. Their entire 2021 capacity is sold out. Also having higher exposure to the Malaysian market, we don't have to worry about US customs seizing Rubberex glove shipments.

I'm looking forward to the 10 billion capacity, bringing exponential earnings. Whether Rubberex is RM 1 or RM 2 it does change the company's plans. Price is what you pay, value is what you get. I'm currently holding at RM 1.50 and with the increased capacity, this company is definitely undervalued.

PAT RM 86 million, another solid QR of growth! @robertzz note that Rubberex also does home and industrial gloves on top of the 2.5 billion units of Nitrile gloves. Upon hitting 10 billion capacity PAT of RM 250 million per quarter is very doable. Think about the current valuation , this price is very attractive!

@BuffetOnWeed I looked into the director feels, and it totalled up to just over a million if I'm not mistaken. Based on their last 4 Quarter PAT of RM 131 million the director fees represents less than 1% of their profits. Given the exponential growth of the company and added value to shareholders, I do think the proposal for the director fees is logical. Think of it as your annual bonus for good performance. Also their fees is quite prudent Vs other companies. Hence , I'm not worried about the proposal today.

@Start_0f_the_bull well managed banks are posting record earnings! Share price may not grow too much given sentiment but you money is safe with respectable cashflow from dividends.

@BuffetOnWeed first if all cool name. To be fair, the stock market is the representation of the collective expectations of its players. The notion of lower demand when cases fall may sound logical to the simple minded.

But on the flip side here are reasons why glove demand will be still robust:
1. Higher awaress of hygiene standards globally
2. Effort from governments to stock sufficient medical supply inventory to avoid the shortage seen mid 2020.
3. Vaccinations drive glove usage. Although not everyone uses gloves, a good majority will

Supply side to remain tight:
1. Even with current capacity expansions there is still a severe lack of supply to meet demands.
2. China's additional glove capacity to only come online in 2024.

ASP sustainability:
1. ASP will ease but not to pre-covid levels as demand is stronger.
2. New supply from the US which produces gloves with a cost of 40USD per 1000 pieces to set the benchmark. Anything lower won't be profitable for the US. Parallel example will be US shale oil. Action and oil cuts taken to protect shale producer so they the remain profitable.

I'm holding Rubberex for a few reasons:
1. Capacity expansion which will drive strong earnings growth.

2. Good management team which has had growth plans well before the pandemic hit. The pandemic only accelerated their plans.

3. Business geography which is in Europe and Malaysia. Europe has a larger population than the US and also is not controlling covid as well, hence that market I expect will have more demand. Malaysia's cases is at record high and this being a market of Rubberex I need not say more.

@Start_Of_the_bull going for recovery stocks makes sense to diversify your portfolio. Although I'm close to 50% in gloves (only Rubberex) because of the coming capacity expansion. No other glove company's capacity expansion is as rapid, note that not all glove companies are equal. Rubberex is a fine diamond among the many gems.

Other good recovery stocks would by MyNews and MMC Corp which I'm holding.

4. No divided declared as fund will be used for capacity expansion to deliver more value to shareholders in the long run. This motion I truly support, as an investor how a company utilizes their cash balance is important. In the case of Rubberex it is very productive.

Good AGM! Bright prospects! Key takeaways:

1. Current Q1 ASPs better than Q4 last year. Coming Q2 ASP is better than Q1.

2. Aggressive capacity expansion to drive earnings growth. 10 billion gloves by mid 2022. That is a 400% increase from the current of 2.5 billion gloves this 2021 and 1000% increase from 1 billion gloves in 2020.

3. Robust demand despite concerns falling covid cases globally. Rubberex full 2021 capacity has been fully sold. Mind you that covid cases falling from peak is still much higher than the 2020 average.

You can find this in the link here: https://app2.msci.com/eqb/gimi/smallcap/MSCI_Nov20_SCPublicList.pdf

Careplus has been added to the recent MSCI Global Small Cap Indexes. If anything, this means that funds have greater access and that those investing in the index would have to allocate funds to purchase Careplus. I see this as a great step forward in the longer term. Let not the market noise distract us from the fundamentals that have been tested and proven.

I've been trading for some time and only recently began my investing journey starting with two stocks that I am extremely bullish on, Bursa and Careplus.

Given Careplus' strong QR's and the trend of increasing ASPs as well as demand, I do believe the fundamentals are intact for the coming quarters. If we look at their production capacity and expansion plans vs smaller peers, I'd say Careplus would supersede Comfort by end of the year due to it's physical production capacity hitting 6.1 Billion.

As an investor, we need to look so solid facts and see through the cloud of emotions. Vaccine? Most will panic, people panic when they don't understand. Hence, let me contribute and enlighten this forum by looking at historical data here. This is a good read and I do concur with this article, makes a lot of sense: https://klse.i3investor.com/blogs/glovesvsvaccine/2020-08-05-story-h1511496008-Potential_Impact_of_Vaccine_Approvals_on_Glove_Stocks.jsp

Tomorrow I will share my thoughts of glove stock valuations, most use the common PE ratios and estimate EPS which is fine. But I'll like to look into capacity vs market cap, because physical capacity is key, second is how well you utilise the capacity.

Cheers all and gentle reminder to put on the investor hat and not to panic sell.