Read my post after that and do you have to ask if I am smoking weed? Come on man..

@sanjanx, PBT last Q ending Feb 2021 was RM 10 m at capacity 300 k pcs/month. With current expansion to be completed by year end, capacity will be 1m pcs/month. That was my basis of RM 15 m PBT/quarter= 60 m /annum will not be an issue going forward . Perhaps even more? Realistic?

@sanjanx, no need to be rude bro. I said going forward , potential 15 m/quarter is no problem with all the demand for formers. It's realistic, If you want definitive, I advise you to put your money in FD at 1.5% returns per annum. Clear?

Assuming all warrants are eventually converted to mother. NOSH should be around 600 m. Assuming this company delivers an annual profit going forward of 60 m/annum consistently, easy I think. Then, even at $1 per share, the return is 10% for your investment if you buy in at $1 per share. I cannot think of many companies achieving this. That's why we are lucky to be in this counter. It's just my back of the envelope calculation. I am not a finance person!

In this group, there are value investors who are discerning individuals and can accept logical arguments. Then there are the momentum investors who use charts and really have no clue of the company. No right or wrong but I tend to favour value investing in this counter. Looking forward to the next round of dividends.

Esceram is caught in the cross fire because of links of R & R with Karim. Karim is definitely not in. R & R probably now got no hope to get a seat on the board as no credibility. My guess is that they may quietly sell bit by bit to the major shareholders. ES will pay good dividend going forward and eventually move to mainboard. People have short memories and all this will be forgotten! All I can say is relax and forget about all the charts.

To think about it, what can this R & R do? They know neither the gloves or formers business. Just for profile! Come on man, we are in Covid crisis, no need magic show. Be honest, produce and make money.

Management/Directors with substantial shares will ultimately step in. They have declared ESOS, want to go to mainboard, expanding etc. All this can be done without R & R. I agree price will rebound.

Friends, why are we so caught up with this Rosli and Rosland? Apart from them being shareholders in ES, they are not Directors . Karim is not even a shareholder. Maybe before this SD issue, it was fashionable to be associated with them, now a blip, maybe they come out OK, if yes, good if not, nothing to worry about, decoupled from ES. Fundamentally, ES is a strong company with the capability of delivery good profits and cash flow. Why bother what's happening with SD? RR probably selling due to margin calls on SD, not our problem. Just keep and collect for future.

A point to note that ESOS price was fixed way before COVID and the share appreciation. This was not planned at low price. However, employees must be appreciated like us the investors. Then the company performance will be sustainable. All good companies have ESOS, it's normal.

Condoms will have pin holes if produced by ceramic formers as it’s rough surface. Condoms are thin , so glass is smooth and even surface. Gloves are thicker and ceramic formers is the best option.

There is no AGM on 28th May as far as I know. Where is this news stated? Thanks

Has this transaction been announced?

To be realistic, I do not foresee any goodies at least until the financial year ends in May 31st. I have no doubt that the results will be stellar. Then perhaps an interim dividend will be declared as a sweetener. So let's all collect at these attractive prices and enjoy good dividends and share appreciation going forward.

Macdaddy is probably correct. Very plausible scenario and value addition to the board.

Dato Kamal was having 26% of ES shares before announcement of 1:1 warrant. Even if he sold all 26% and converted to warrant to mother, he and his family will still hold 13% of ES. Looks like still a high ownership level and with the R team coming in, I believe good things will happen in the future on diversification. High tech ceramics could be a way forward. My 2cents worth...

Rubererx will definitely buy from the Ipoh plant. They also buy household formers already since long.

The warrants have been priced in already as the conversion also benefits the cash in company. That's my view because I was confused with Covidcovid comments. I like to learn a little as my financial understanding may not be so good. Thanks

@Godofgambler , Thanks

@ Godofgambler , I am holding at 0.74, I hope you are right. Any timeline?

This company has no plan or vision. Useless

Also for this group to know, there are examination formers that is for examination gloves where all the Covid impact is discussed. ES also makes surgical, household and industrial formers, smaller quantities but prices are very high compared to exam formers. Your gardening gloves are made from their formers. So, a very unique proposition.

@Wolger. Ceramic Glove Formers are replaced because of breakages and corrosion on surface of formers due to chemicals used in glove making process. Typically it lasts around 40,000 cycles/gloves/former which may be depending how fast the dipping line operates -6-8 months. So, it's repeat business and also for new lines. The more glove companies , the more replacements of formers needed. It's not cyclical and a stable growing business. Hope it's clear.

May I know what big news could be expected next week? I hope somebody can share? Thanks a lot.

@ Calvin: Rm2 will come if growth is accompanied with dividends later. For now the next target is Rm1.00
18/03/2021 7:37 AM

Thanks, fully agreed. Really a good company to keep for share appreciation and dividends. Personally, I think it's a blue chip as it's also non political, fundamentally sound business.

Calvin, in your view , if PAT in excess of 40 m/annum consistently, what would be a fair price for this stock? $2 realistic?

none

Yes

Let's hope for a dividend announcement today! They should reward shareholders.

@Michael Yeo :Shrewdinvestor. Charting the momentum, uptrend will be favorable for medium to long term duration. Watch out for the QR report. Happy trading. Fly

Thank you and you too

@Michael Yeo, could you please share with us your view of this counter because you are holding so much. What's your advise to small investors like us? Any target price you have or you are keeping long terms? Thanks for your input

That I fully agree if other businesses are injected and then, the sky is the limit...Just hoping next QR is excellent and these guys announce special dividend as well.Will lift the share further.

In life, we must not get ahead of ourselves and be realistic...

Highly unlikely but I reckon 10 mil would already be very good. Expansion is not on yet and pricing power cannot push up to 5X more. We need to be realistic. Returning 40 mil on any financial year would already be excellent.

I fully agree. With the expansion, I personally think RM 8- 10 million PAT per quarter can be achieved. Need to hold this stock! Good luck!

From the recent shareholding movements, I think that this company is gearing up for big things. It's become a strategic supplier to a strategic industry- gloves. It's growth will be phenomenal for next few years as it will be the largest formers producer in the world. There is always a premium attached to such a company. Expect more focus on this counter. Share appreciation and dividend yield.

@JohnFarmer456 the most accurate analysis that I have seen todate. Excellent. As the base for formers demand grow, replacements will be growing. This business has a fantastic business model. I expect share appreciation and good dividends going forward. Better than keeping your money in FD at 1.5% interest.

Is Rosli from Serba Dinamik ?

@Allenlee, what big news?

The cash position increased from 20.2 m in May 2020 to 48.1 m in Nov 2020. Customers are paying deposit and order book is full. Formers prices are increasing and glove companies expansions cannot be stopped as demand for gloves are strong. Again as I commented some time ago, the fundamentals are extremely strong and growth is steady. What is happening to the gloves counter should not be a real concern as this counter is decoupled from them. We should see another increase in profits in next quarter. This counter is a no brainer for investing in with history of dividends paid.

Owners are clueless about gloves business, no background. Opportunist... Very sad to see a good company go down like this...

This counter will eventually recover but it will take at least another 2 quarters of stellar results. IB will not touch this now. Anything above $1.50 already good price. Moving to other counters, banking is a good bet...

Q2 results will be announced in Jan 2021. It's going to be very good as orderbook is full and pricing power is increasing. Hence, run up will start very soon and frankly they are decoupled from all the assumptions of following Top Glove or Supermax price etc. They have a very large customerbase.It will easily hit $1 very soon as if you remember it peaked at almost $2 before the bonus and warrant. Going back to $1 is just the new normal, nothing extraordinary... Catch it while you still can, especially the warrant as well.

Can anybody explain to me if this counter can go to 0.80 in mid term? I am caught at buying at $1.49. Unfortunately my mistake, listened to my incompetent remisier. Thanks as I am not familiar with their business. Thanks

I just had a quick look at Q1 ending Aug 2020 vs Q4 ending May 2020. Cash +6.6 m, Trade receivables -4.1 m(shows strength in market to collect), Payables -2.1 m. I don't even talk about increased profits. Please tell me how many small cap ACE companies are showing these kind of results and for sure getting better? I advise newbies to keep as you will have to pay much higher in future to come in. Good luck!

@Calvin, sorry to disagree but look at Mercator share price appreciation in Poland. They have a glove plant in Thailand. Valued higher than Commerzbank in Poland! All Medical related counters have still a long way to go to fulfill their potential based on future earnings.. My 2 cents worth!

With the new MCO, vaccine quite far away and not definitive. I see very few counters that will provide sustainable upside. We are lucky to have such low entry level with a potential high yielding stock.

Good for Esceram that they are not in Selangor. Perak and Thailand should be normal and production should be smooth. Let's not let uninformed people talk rubbish here. Hope for 1.60 as well.

@ConfirmKaya, you just have to go to Announcements on September. It is under 2.1 on Salient Points of warrants. Sorry, could not find the link

3 years