Waiting for 4pm

Still more down to come la

Looks like any vaccine is not going to be very effective.

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Antibody levels of recovered Covid-19 patients drop sharply after three months, says Health DG

https://www.thestar.com.my/news/nation/2020/07/14/antibody-levels-of-recovered-covid-19-patients-drop-sharply-after-three-months-says-health-dg

Those who bought early since March would have been through a few of these scary corrections and shakeouts. Best thing is to switch off and come back in 30 minutes later!

Rehat time

Writeup on the PUT WARRANTS. For short read - jump to last 2 paragraph
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KUALA LUMPUR (July 13): It is undeniably a bull market for the glove makers currently.

However, an interesting trend has also emerged in the local market on Monday — an equally frenzied buying of two newly-listed structural put warrants on Top Glove Corp Bhd (Top Glove-HA) and Supermax Corp Bhd (Supermax-HB).

The strong interest in the derivatives that hedge against a fall in share prices of Top Glove and Supermax has made many in the investing fraternity perplexed.

The prices of the two derivatives, a bear market tool, rocketed over 200%. Top Glove-HA soared by 207% and Supermax-HB by 291%, on the day when the two underlying stocks climbed to their all-time highs. Supermax saw its biggest ever share price leap of RM2.36 to RM15.98. Top Glove’s share price gained RM2.08 or 9.5% to RM24.

The large trading volumes recorded were another evidence of the strong interest in the two derivatives. TOPGLOV-HA was the most traded securities on Bursa on Monday, with 613.47 million units having changed hands, while Supermax-HB was the third most traded counter with 567.9 million units done.


In a nutshell, put warrants grant holders the right to sell the underlying shares at a specified price (exercise price) within a limited period of time (maturity). Structured put warrants are hedging tools. Investors tend to use structured put warrants to hedge against any big drop in the underlying share prices.

Some market observers commented that the surge in interest in the two put warrants, which made their debut just two weeks ago, could be attributed to the increasing number of glove bears in the market, although the bulls still swarm the market in general.


“No one could deny that the downside risk on those glove counters are heightening, as their share prices are trading at such hefty premiums. Such put warrants would allow investors to hedge their long position on the underlying shares,” said a market observer.

Even so, the spike in the prices of the two put warrants has been astonishing, to say the least. Given that the premium of the two derivatives are near 100% based on the closing price on Monday, the hedging tools themselves have also become highly risky.

Based on the exercise price and conversion ratio, the put warrants are pricing the mother shares at RM2 for Top Glove and 30 sen for Supermax. “Investors will only make money if the underlying mother share drops below these two levels (assuming the investors hold onto the derivatives until the expiry dates). Is that possible?” explained a warrant specialist.

Nonetheless, structured warrants are a trading instrument so investors are unlikely to hold onto the derivatives until expiry date. In this case, the warrant holders who bought in earlier would have made handsome gains after the price rally on Monday, if they locked in their profits.

https://ceomorningbrief.theedgemalaysia.com/2020/0017/

Jack Khan what happen to 2ndliner glove stock all not moving?
13/07/2020 4:19 PM

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Waiting queue number to be called

Shakeout almost complete I guess

What's the formula to calculate the PUT warrant?

Rotation

LIVE | 111 Aye, 109 Nay - Dewan Rakyat speaker ousted https://www.malaysiakini.com/news/534104

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Fortunately or unfortunately, no drama today.

LIVE | 111 Aye, 109 Nay - Dewan Rakyat speaker ousted https://www.malaysiakini.com/news/534104

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Fortunately or unfortunately, no drama today.

chtan33 why uncle tell the "RED INDIAN & WEATHER Forecaster" story?
13/07/2020 1:12 PM

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What story is this?

Congrats

Fact is no one will hantam stocks that they are still holding day in day out since June.

Eh bro, my entry cost is lower than 0.98 lah.

Jul 13, 2020 10:06 AM | Report Abuse

Dude. Pls. I’m holding comfort too. From rm1 with 100% fund and 80% margin. I sold partly around 4 and switched to harta and supermx. Then slowly sell and switch. I’m still holding now. I don’t hate comfort. I’m saying without further and better catalyst, comfort won’t move. That’s it. We’re talking about tp 18 for supermx last week. It had almost 80% uptrend. Do u think comfort will go up another 50% without catalyst? I don’t think so. Never fall in love with the stock u buy. I’ve been telling you guys to switch PARTLY only in late June. I never said SELL ALL. Coz I was uncertain too but what I do know is that supermx, Topg and harta has better upside. That’s it. I am still holding comfort but I think I’ll sell another 20% and wait for the right timing to go in top3. All the best and wake up guys. Comfort has never broken its 4.2 previous high and the rest have been breaking and breaking high.

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A bit funny right? You say you're still holding Comfort but you hantam it and encourage people to sell? No one ever does that unless they have sold all or are looking to buy in. So which is it?

Wait for parliament vote to be over

Glory favors the bold. May he hold the handle of success and drink from the cup of wealth. :o

Is that a cup and handle?

Wait for it guys...

Looks like sharks parked bus at 3.6 and 3.63/3.64 --- collection?

*hopefully* :d

"Rising tide lifts all boats"

Today's price action shows that Pelham works for the sharks/bankers (writes like one too although this is a good thing). Asking people to sell during the most bullish part and asking people to buy just before correction.

Where to find that Kenanga report? Again like in May, their target price increased just less than a week after they raised it to $14 on 8 July.

Today's forum will all be in reference to tulips and other flowers I guess

I suspect KYY's cryptic and cheeky tulip post is to get jittery investors to sell their Super shares so he and his 50 friends can buy cheap before QR. Tulip post must be read together with his earlier post on him recommending friends to buy Super on margin to the max. Next post he'll say people misunderstood him and he was just talking about his love for flowers and that people are stupid to sell especially given his earlier post for Supermax investors to be "more observant".

Check May RSI - it was overbought (>90%) for the entire month where share price went up by 100%++. By the time it retrace, you could have missed out on significant upside and will be buying at high prices.

CGS-CIMB ups Hartalega target price to RM20 on higher ASPs, after ‘too conservative’ forecast earlier
https://www.theedgemarkets.com/article/cgscimb-ups-hartalega-target-price-rm20-higher-asps-after-too-conservative-forecast-earlier

PureBULL - I agree.

Firstly, the buy recommendation came a full 3-4 months after the start of the bull run i.e. after Harta has gone up 100%+, Supermax up 400%+. Any tom dick and harry also can recommend gloves and be right at that stage.

Secondly, 8 June buy call just before a -23% correction (how many readers bought at the cliff right before correction?). If this nicely named fund had done a bit of homework, simple technical analysis would show that a correction is just around the corner.


And now selling (possibly) way ahead of the most bullish part of the 2nd half of the bull run. At least state the reasons/analysis why you or anyone should take profit now. Credibility is not there otherwise.

Rotation play. What is Comfort's queue number?

Apple391 Chill la guys. IB making u all bored and force u to sell cos feel jealous of other. If its bad it will fall more drastically. Long enough u will know their game. FYI I own both comfort and big 4
10/07/2020 8:18 PM
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Agree, this is their game. I also own big 4 + comfort. But not fun lah when you see past 5 days performance:

Supermax +43%
Kossan +32%.
Top Glove +18%
Harta +6.5%
Comfort +5%

I think sharks will only push up after Monday parliament session - assuming it is a non-event.

In just 5 days:

Supermax +43%
Kossan +32%.
Top Glove +18%
Harta +6.5%
Comfort +5%

Highest Supermax TP right now is RM14 so can share price move higher next week beyond RM14 before QR announcement?

Monday parliament so I think sharks not pushing Comfort until after that. Sekali no confidence vote...

Estimating net profit RM420m for next quarter :o

Tomorrow up 14%

Let's play guess the quarterly profit game. I say RM420m...

freetospeak maybe my RM27 calculation possible heheehe

Wont lah, maybe tomorrow. Today need to get rid of contras

Looks like the comfort party started early. Thought will be tomorrow.

Today is T+2 from Tuesday's highest of 3.71. Tomorrow?

rr88 u copy paste into wrong forum haha

I like this sibling rivalry between Kossan and Supermax. Keep it going (up)!

Comfort collecting period i think

Maybe have not factored in tax need to double check

freetospeak -- i calculate use net margin of 19% and 25% (range derived from UOB report) instead get NP RM399-526m. Applied 30% discount on ASP in UOB report. Assuming net 4 quarters same NP based on 5-year mean PER of 13.3X = RM15.64-20.58.

If use 1-SD PER 17.3X... :o

freetospeak i can say the ib are still underestimating the profit for glove stock since march...especially supermax
08/07/2020 9:49 AM

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They have to reveal bit by bit else supermax share price will shoot straight to target price and end of bull run in 2 months. Pacing it...

I still remember 1.30 to 3.00 already thought can sell...

dalpinia freetospeak dalpinia UOB REPORT:

FY18: 21.8B pieces per yr

5% OEM, selling at USD80-95

40% OBM thru independent distributor, selling at USD80-160

45% OBM thru own distribution, selling at USD160-170

I count count count, PAT around RM2b per quarter, eps RM1.5 per quarter

Who can calculate based on the facts & figures given by OUB report?

Dalpnia...welcome to the billion-profit-handshaking club...lol..this club was founded bak in may when a group of sifu here found out that supermax profit could run into billion and hand is shaking when calculating. Of course that is in best case scenario and there are too many factors not considered. Since then we only emphasize on conservative projection so that we dun mislead ppl. So lets wait for result n hopeful for a very big profit bonus...lol..

Thanks.
08/07/2020 8:33 AM

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How you guys get 2b per quarter? Mind share your workings?