I believe we’re at the cusp of a new wave. Driven by
1) KLCI inclusion/review
2) Dividend ex in a few weeks
3) A massive explosion of Covid and ensuing headlines

Good luck !

Last chance to board the train cheap? Inverted head and shoulder forming? We shall see. All the best guys !

1) technicals looking positive (with a 3 month consolidation period behind us)
2) incredible fundamentals
3) all timed to perfection with KLCI inclusion imminent in Nov and dividend in Dec and new highs in Covid cases worldwide - only to get worse.

Do you really want sellers remorse?

inverted head and shoulder? Topglove, Supermx and Comfort? Breakout soon...we shall see

1) has been consolidating for 3 months...
2) trailing PE has reduced to 20x in that time
3) still a few quarters of phenomenal numbers to come

and you guys want to sell?! Good luck with sellers remorse

Are all the sell on news robots done yet? We shall see

If I were the funds, I’d collect at these levels, wait for those who, like robots, sell on news, and push up thereafter.

@johnny cash, 20th Oct

I have both Ruberex and Comfort...as I've posted before, Ruberex is holding better because the owner has cornered the stock...is more aggressive, and the stock has a doubling story...that being said...if one runs, I hope all will run...

1) strong EPS, with capacity expansion story in Q4.
2) Owner and company keeps buying back
3) Bonus issue coming up
4) Technically looking quite good
5) Owner appears to have cornered the stock and taking steps to raise the prospects of the company.

Definitely a dark horse in this race...will surprise many, is my guess.

So many good things about the article shared by High5.

Besides the optimisation of capacity, I think it's important to note that they are locking in commitment for the next 18 months ! The earnings visibility is amazing for all glove companies...

@Primeinvestor - Yea, the outlook provided by the management is very positive...

Awesome results:

Assume 4 quarters of the same results (not factoring in any growth)
7.34 x 4 Q = 29.36 EPS
20 PE = 29.36 x 20 = RM5.87

If we factor in a little growth

25 PE = RM7.34

Current running PE (based on EPS of the last 4 quarters) = 31.35

To put it in perspective, the running PE for the rest that have just reported their earnings:
Ruberex = 36 PE
Carepls = 50 PE
Harta = 86 PE
Kossan = 57 PE
Supermx = 47 PE
TopGlov (has not reported their latest earnings yet)

Comfort is clearly oversold and undervalued in relative terms, at the moment.

End of the day, it’s about earnings. If ASPs are raised as per other companies that have reported, doubling or tripling last quarter is very possible.

Short term catalysts:

1) TG Earnings report
2) TG US customs resolution
3) Comfort earnings report (should be good, hope it'll be great)
4) Perhaps early reporting of Supermax results in October (yet to be seen)

Short term catalysts:

1) TG Earnings report
2) TG US customs resolution
3) Perhaps early reporting of Supermax results in October (yet to be seen)

Supermx dividends to come and Ruberex bonus issue to come

US hits >50k new cases...first time in 20 days...and this hasn't taken into consideration Labor day holidays on the 7th Sept. Not to mention, autumn and winter is coming...

France and Spain also reporting new highs since their lockdowns...

https://www.channelnewsasia.com/news/world/covid-19-surgical-gloves-pp...

"As a result, customers must now wait nearly 600 days for their orders to be filled, compared with a normal delivery time of 30 to 40 days, said chief executive, Lim Wee Chai."

600 days!!!...imagine the earnings visibility...

https://www.channelnewsasia.com/news/world/covid-19-surgical-gloves-pp...

"As a result, customers must now wait nearly 600 days for their orders to be filled, compared with a normal delivery time of 30 to 40 days, said chief executive, Lim Wee Chai."

600 days!!!...imagine the earnings visibility...

A 15% increase in ASP could double their profits. Assume that’s the case. That’ll be 5.6 EPS

Assume they do the same for the next 4 quarters
5.6 x 4 = 22.4

Assume 20 PE
22.4 x 20 = RM4.48.

Regardless of whatever is happening in the shareholding, this is its potential.

The current price is not overinflated at all. Are there other glove stocks with greater potential? Of course. Is this a bad stock to hold? Or course not.

If they raised their ASP by 30%, the earnings would be significantly more.

The current malaise in the market is affecting all stocks, not only gloves. Once sentiments get better, hopefully we see all glove counters recover strongly.

Just my opinion.

This counter really mysterious. Also brutal. Move up fast but also can retrace all the way back to square one. Can make shareholders crazy.

@kens88, yes, comfort has lots of potential to make quite a bit if they raise their average ASPs, even by 30%, due to their much larger capacity.

https://www.thestar.com.my/news/world/2020/09/04/widespread-covid-vaccinations-not-expected-until-mid-2021-who-says

The current correction is broadbased, not only confined to rubber gloves, although the latter is hard hit due to it's huge moves over the last few months. Frankly, the glove sector is the only sector we know will be making tonnes of money the coming quarters. Best of all, it is not rocket science to try to guess their earnings...easy also because you know they are running at full capacity...the only missing element is their Average ASPs (even then, it can be estimated)...In my opinion, there's still upside...of course there will be noise on vaccines coming up to disrupt things here and there...it's up to you ! Do you believe:

1) an effective vaccine will be produced by end of this year?
2) the companies will be able to make billions of shots within the year?
3) people will trust the safety of the vaccine? Hence, will they want to be jabbed with something unproven by time and proper testing?

The choice is on each investor...

kens88 - based on current Price to Earnings Ratio, Ruberex is among the most attractive...it also has capacity growth in the pipeline (end of the year). If you check my earlier postings, you will see why it is one of the more appealing Rubber gloves companies, although it is not covered as much by analysts and IBs. Flying under the radar, so to speak. Just my opinion...

@axecapital - it depends on the ASPs...if they have similar ASP growths as Ruberex, I believe they can achieve 50mil...however, not sure if they have the power to raise prices...let's see ! Fingers crossed !

I believe the expanded capacity will only kick in Q4 2020. Currently, I believe it's still 1 billion pieces per annum. Can you imagine the potential?

The people operating this counter are ruthless, brutal, vicious...push it up and bring it back down to square one...the good thing going for it is Ruberex had just delivered a good quarterly result. Once, Ruberex starts to run, hopefully it will bring comfort along for the ride.

Hopefully, comfort is able to do at least RM45 million this coming QR...very very possible if they are able to raise their average selling price.

Don’t think it’ll be at 6 at ex date, making it 2. Likely be at 9, making it 3...even then, ex date may be a month or more down the road?

8.69 x 4 = 34.76
Assuming next 4 quarters can do the same
34.76 x 20 PE = RM6.95

I did the above earlier...that assumes no growth...but if there's a doubling of capacity...i don't think 30PE would be unfair...

34.76 x 25 PE = RM8.69

To keep it conservative...i won't do a 30 PE

if the results is so bad, it wouldn't be where it is now...in fact, it's an opportunity to buy before sentiments get better for gloves...

don't worry gemfinder, with the sentiments currently, i think you'll still be able to get in cheap...

just to bring in some perspective...
latest quarter
- harta's EPS - 6.49
- kossan's EPS - 10.25
- Careplus EPS - 4.1 (after deducting one off profit)
- ruberex EPS - 8.69

Don't think ruberex did poorly at all...

And Yes, we haven’t factored in extended capacity in Q4

8.69 x 4 = 34.76
Assuming next 4 quarters can do the same
34.76 x 20 PE = 6.95

If we look at the running EPS 14.14
If we multiply by the PE that Careplus is running on after their report, which is currently 59x

14.14 x 59 = 8.34

if 27-28mil is achieved, it would be great already !

@ChefSaham, let's just put it this way...these guys makan gaji...clock in, clock out !

hope it'll stun us positively...coz we really need some good news !

Yea, Patrick is right, it's not about absolute earnings, it's about earnings per share.

Ruberex is a small player, but the following is why I think has potential.

1) It doesn't have as much shares issued as compared to the rest (easily controlled - Well, can work both ways - but just be careful.)

2) the stock looks cornered. Owner owns >50% officially. Unofficially? And continually buying.

3) It has a doubling capacity story which hopefully comes on-stream by 3rd or 4th quarter 2020.

4) Earnings growth is easy to come by from smaller companies with smaller bases. Especially when there's strong demand and ASP growth.

5) Very aggressive and opportunistic owner from how it looks so far.

Hope it doesn't disappoint in the next few months to come.

FYI, I have both Comfort and Ruberex. I also hope comfort catches up with Ruberex and both run like crazy ! Fingers crossed Ruberex comes out with good results, as it is reporting soon, and that will drive all the second tier stocks !

Yea, ruberex is a small player, but the following is why I like it.

1) It doesn't have as much shares issued as compared to the rest (easily controlled - Well, can work both ways - but just be careful.)

2) the stock looks cornered. Owner owns >50% officially. Unofficially? And continually buying.

3) It has a doubling capacity story which hopefully comes on-stream by 3rd quarter 2020.

4) Earnings growth is easy to come by from smaller companies. Especially when there's strong demand and ASP growth.

5) Very aggressive and opportunistic owners from how it looks so far.

Hope it doesn't disappoint in the next few months to come.

If your prediction comes true, we're looking at a good rally ahead

@superpanda, let's hope they do 3x Q1, then we have something great to look forward to ! :)

If I apply Supermax's performance on TG, I actually think they'll break the billion ! let's see...if it does, it's good for the glove sector as a whole...

sure hope they do much better than 30mil

i have comfort for sometime now...if it just reaches 30mil, it would be disappointing...If I assume they repeat this for 4 quarters, it'll be roughly

~ 5.6 EPS x 4 = 22.4

20 PE = 4.48

Put a little bit of growth in it

25PE = 5.60

Which means we should be selling it soon?

it's a wonderful initiative by yttihs to stop the rot in this forum...the stench of manipulation was getting unbearable, with baseless comments...we can agree to disagree but some of the comments are downright puerile.

@yttihs, please add. Tired of these negative comments without substance.

@yttihs, please add me. Thanks

TeamRocket, this time don't sell so early and turn to the dark side ya...

when it fell 30% from 9.30 to 6.50, they really made us sweat big time...it was churning like crazy...today, we are 30% down...and making us sweat like crazy