For those who missed the glove bull runs, do not be despaired cos there are lots of other opportunities in this current market. Take a look into stock broking business! They are direct beneficiaries from the heavy buying and selling of stocks and warrants. I would like to recommend Bursa cos it is the Taiko in KLSE but due to its price, let me suggest an alternative, ie Kenanga. Why?
# cheaper entry at an average price of 0.555
# they are one of the most active call warrants issuing house
# best of all, they have a 50% JV with Rakuten making this the potential cash cow in their group holding

The Edge published an article on 13th May 2020 about Rakuten making profit just 3 years into its operation in Msia. That should ring some bells to those who knows how to calculate the P&L of stock broking business. What makes Rakuten different from other stock brokers are :-
# ease of opening an account- everything is done online! This hassle free application makes it attractive to current digital savvy generations. During MCO, the applications for new accounts must have hit sky rocket.
# offers the lowest stock brokerage fees in Msia. It starts at rm7 to a max of rm100. For those who buy and sell in huge amount, this cap of rm100 is one of the tools they use to max their transactions and profits. This results in very huge transaction volumes for Rakuten as well. Win win situations.

In this current market where a lot of people are being lay off or retrench, one of the avenues ppl turn to is stock market. Loan moratoriums, money received from retrenchment benefits or VSS, low interest rates (makes it attractive to borrow/share margin and unattractive to put your money in banks) plus the question of “where is the best place to grow my money” will definitely propel the earnings of stock broking companies.

Kenanga 1st quarter report is due anytime soon and your guess is as good as mine in regards to its earnings. But I am sure their 2nd quarter due in August is going to be one of their best, just like the glove companies. Hence why I recommend to look into stock broking business as an alternative. Just look at Bursa’s daily volume in recent months and the frustration we faced in executing our transactions. Huge bottle neck.....

It will be great if any of you can help to embed the video. Currently there is a race to find covid 19 vaccine from US, EU, China etc. Truth is it will take a minimum of 2 years before any drugs or vaccine can be deemed as safe or proven.

This vaccine is currently being heavily promoted by Trump just like his previous promotions on unproven drugs such as hydroxychloroquine & remdesivir.
Sorry I don’t know how to embed this video fr CNN investigate abt moderna. Basically it’s about how trump is desperately trying to champion an unproven company “which never has a drug or vaccine approve for market” so far. He is dumping in money to a company because he likes what he heard ie moderna could deliver the vaccine now!

Video and article dated May 1st from CNN entitled:
In quest for vaccine, US makes 'big bet' on company with unproven technology

It’s with options of buying 100% of CMSB making it to 30% of its production lines. What’s interesting is Ansell with a revenue of Usd 1.59 B (2018) has been on a shopping spree purchasing or doing JV with companies that manufacture medical PPE in recent years. When they identified this JV with Careplus, it means they had done their due diligence and saw a big potential in growing its glove segment in Malaysia. Malaysia already has so many big glove manufacturers with more established names. So why choose Careplus?

With Ansell financial backing, Careplus can increase its production capacity and have access to a bigger market in the future. Hence even with MCO on, they are doing a digital voting on 6th May showing the urgency in moving ahead with this deal. Positive all around. For those who have missed on the other glove companies, Careplus provide the lowest entry option.

Can do idss again?

@bullballs, exactly! That’s why I told my frds and family to buy now BUT must hold. Don’t sell for 10sen or 20 sen gain. You need to have holding power n lots of patience for this stock. Don’t see ppl panic sell n you also join in. Then when price gone up, go chase it. That’s how lots of ppl lost money in bursa. Buy and don’t see until 3-5 yrs later. Think of it as your FD

It's being pressed down every time cw expiring. There are 3 in May, 1 in June etc.. The one most interesting should be in May cause that's when the qtr report gonna be out and it's a given that this qtr sales covering Jan-Mac will be a big Big jump. It would be fun to see who has the upper hand. Hopefully the issuers got burn kaw kaw- hangus kering kontang just teach them a lesson. The next interesting would be C77 ex sept at 1.50 and c80 ex Oct at 1.25. Should be fun then. Let's see who will win during those rounds.

In fact I have been encouraging lots of my friends to park their money in Supermax rather than putting in FD or buying properties. It’s because I DO see the potentials in this company, the dedications and efforts put up by the BOD and top echelons of the management teams. Until today, I would still tell them to buy Supermax and not Harta, topglove or kossan since those are already over the top with ridiculously high PE. It’s just about stopping the rampant manipulations to give Supermax it’s true value. Don’t tell me one day comfort or care plus can reach 3.00 while Supermax is still at hovering around 1.50-1.80 range? The question is where do we address this manipulations to? The BOD or Bursa regulators?

I ask myself what should be supermax price today? It should be at least 2.20-2.50 range. And this is also on the low end if we were to compare it with their peers which had run leaps and bounds.

I think the fault also lies with supermax mgmt. There are too many free floats in the mkt enabling money maker or call warrants issuers to manipulate the price. If they have more institutional buyers who hold their shares, then this would not have happened as well. One way they shd have done is to do more share buy back. Another is to promote their shares to those overseas funds eg US retirement funds since majority of their business goes there. These steps would definitely add value to the share. I have been long enough in supermax to see the patterns of manipulations and had also brought up this with Cheryl during one of the agm I attended. Since we are now bringing this issue
to the public, I hope the mgmt will take heed and do something about it cause my patience is also running low. We are investors who trust supermax to take care of our investments, thats why we buy the shares in the 1st place. But if this trust is misplaced, it may be time to leave and place it elsewhere. It will be a shame to do so because I truly believed supermax as a company worth its salt. I will be holding it for the next few qtrs to see any positive developments, then its sayonara time

Let me share some of these tips to keep you safe if you need to go out and buy your groceries. Put on a glove on one hand only. Use it when handling outside stuff eg opening doors, picking up canned food or fresh produce and handling money. The one without glove use for handling keys, hand phone or tissue paper in case you need to wipe some parts of your face. When reach the car remove the glove, disinfect hands and spray the money in the pouch with disinfectant also. Do not keep your IC, driving license or credit cards in this pouch. Best used pouch with zip and make fr material which you can spray on. No choice cos you wouldn’t know who has handled the money prior to you. Thanks to Supermax AGM, I got a few boxes of gloves at home. That’s why I always said go to AGM!!

From Supermax financial year ended 30/6/2019

Sales by geographical market according to the continents

America 769,078,370
Europe. 399,920,752
Asia & Oceania. 323,012,915
Africa. 46,144,702

America contributes to 50% of their sales. If RM continues to slide, Supermax really huat this round. Plus huge increase in usage- they are using 5 mths worth of gloves in 6 days. Since I fail maths, can someone compute what kind of sales projections we should look for from Jan-Mac. Also for every increase in Usd, how much will it translate as profit to Supermax.

Rm keep falling 4.41 now. Looks like to reach 5 is not impossible.

Am excited abt the next coming qtr results. Shd be out mid or end of May. Dats for Jan-Mac sales which is when demands starts. Hopefully smax declare special dividends for thee coming qtr.

If u have extra money sitting in the bank with no foreseeable investment eg buying properties, then best park your money in glove stocks. Supermax the best due to lowest PE and huge exposure to north america mkt

Supermax got not much rooms to press down from now on. When top glove results out more funds will park n hold glove counters. This one industry dats making money for us when all others suffer huge losses. Tks @maxam for the link abt the glove usage. This type of articles r great for us shareholders or investors in glove counters. Supermax in de best position to take advantage due to their presence in US.

Rm drop 4.32 now. Only light at the end of covid 19 tunnel is gloves n medical related products. Hold tight everyone

Wondering whether bursa would temporarily ban idss in this mkt condition? Otherwise all stocks continue their free fall everyday. Even blue chips no more blue

Any one staying at klang? Can please go check Supermx factory or not? My guess is its operating 24/7 and haulage container trucks are moving in and out daily.

Any business related to health is exempted. Point number 6-
Sixth, the closure of all government and private premises except those involved in essential services (water, electricity, energy, telecommunications, postal, transportation, irrigation, oil, gas, fuel, lubricants, broadcasting, finance, banking, health, pharmacy, fire, prison, port, airport, safety, defense, cleaning, retail and food supply.

We are not implementing total closure unlike Wuhan. Ppl can still move around, just less of them. Hence factories that produces gloves, mask, medical products are still open.

Thanks @maxprofit2020. May u live to your name!!!

@maxprofit2020 seems smax getting less idss recently. Possibly due to players having less room to press down since smax has been hovering in a tight region. Comparison within 4weeks range price for example;
Kossan 3.44-5.43 (1.99)
Topglove 5.15-6.69 (1.54)
Harta 5.69-6.69 (1.00)
Supermax 1.52-1.86 (0.34)

The rest have gone up quite a lot, so they may have more rooms to press down? If this is true, does it mean Supermax would have more legrooms to appreciate further? My take on this may be flawed because I didn’t factor the price percentage difference but on absolute pricing. Appreciate your opinion on this. Thanks.

@maxprofit2020 tks for your input on idss. It's something I look forward to cos your analysis is spot on. Now can i get your input on those cw expiry in relation to smax price? I noticed there has been many manipulations done to smax price prior to cw expiry every month. Its only recent months that IB got burnt due to stronger demand for glove shares. Appreciate your feedback especially for those expiring next couple of mths.

My policy is always to buy stocks with my spare money=money that I can afford to lose=money that earn peanuts if put in the banks. I don’t use margin financing because I do not believe in such an instrument. Looking at today’s bloodbath, you will understand why margin financing is one the the worst instruments to be used. The risks outweighed the gains, so don’t waste time with it. I buy shares for capital appreciation, so I would usually buy those that gives consistent dividends. Supermax is one of those that gives consistent dividends and is a defensive stocks to me (virus or no virus it is still needed in health care industries). Now with this corona virus, it creates an unprecedented demand for gloves. I do not know how long the demand will lasts but I know even once this virus is eliminated there would be other viruses in the future.

Idss adds liquidity to the market. In order to buy stocks, you need capital and not everyone has a big capital to keep on buying. Hence idss allows those with limited capital to sell first (even though they do not have the stocks in hands) and buy back within the same day. Without it, there is very low volume=low liquidity cos no selling=no buying back. With such selling and buying going on, bursa also makes money from your clearing fees. That’s why they allow short selling. But the risk to short selling is extremely high too. If you are retailers with no time to monitor the market, pls stay far far away from using such an instrument.

Supermx is one of the major supplier of gloves to UK hospitals. If not mistaken 40%. They also have a very strong presence in US, big distribution channels plus factory in Brazil. When coronavirus hits the fan in North and south America, supermax is well prepared there

Hexza

Luxchem - supplies the chemical for making the gloves
Esceram - the mold for making gloves
Hexza - supplies ingredients to produce disinfectants

Well pls continue to add any missing companies...

The only way supermax can go above 2.00 and beyond is when buyers hold for long term, not punters jacking them up for short term gains. So instead of putting money in FD or speculative stocks, best to hold it for a few years. You get capital gains plus dividends better than most other riskier investment.

If I am a foreign fund from US and trying to escape the bloodbath there, I would shift my funds to Msia glove stocks. So cheap with ringgit so weak, countries everywhere scrambling to stock on gloves and a virus that doesn’t seem to be stopping anytime soon, in fact spreading to more countries. Why Supermax- cheapest valuation amongst the big 4 plus they have extra capacity to cater for the increase in demands. Their productions prior to covid 19 was abt 75%, so there will be a huge jump in May reporting. Top gloves had reach their max capacity, that’s why now they are buying other smaller factories to cope with the glove demands. I have been collecting Supermax shares for many years and have attended every single AGM since the time I bought. My average price bought is very low (price before bonus 1:1 was between 1.84-2.40). Do I plan to sell it anytime soon? Nope! Going to hold them for 20 years. Ok....Ok....will try to hold for 20 years.

One of the reasons this covid 19 is so scary is due to the false negative and false positive test results. The American lady from the cruise was tested twice with a positive results but yet none of her fellow cruise members has it. Subsequently just a few days later she was tested as negative. If false positive could occur, it means a false negative also can happen. So a carrier may be happily moving around infecting others cos his test results said no problems! That means there may be a lot more cases soon. I wonder what kind of test kit hospitals worldwide are using. I understand some kits are faulty based on chief 999 article

Hard to predict cause if our ringgit tumble, export stocks go up.

Until now no one can tell me where Ocn got their raw materials from. If it’s sourced locally then it’s great but if part of the raw materials fr China, then gone case. Latest directive fr China government is even civil servants bar from using n95 mask cos it’s insufficient, they need to keep it for medical workers.

Cos I understand car makers in Japan having problems with their car manufacturing due to disruption in supply chains. If part of the key components is fr China and they themselves needed the materials to produce masks, they may freeze exports

Does anyone know where OCN get their raw materials for making the non woven products? China or its made in Msia?

Stock prices fluctuates all the time depending on “the flavour of the month”. Since Wuhan virus is just at the beginning stage, we wouldn’t know how long the panic is going to be. How short or how long is anybody guesses. Preemptive step are being taken by many countries to prevent, contain & minimise the spread but at this current stage they still have not identified how the virus is being spread or how virulent it is. Common understanding is its a form of influenza, hence basic precaution is masks and gloves.

Another great stock to own now is Oceancash ( thanks to flexibt ). Go for manufacturers, not the distributors cause anyone can distribute but few can produce.

Looking at the way Wuhan virus is spreading, there are ample opportunities for all glove stocks to go higher. For me based on Supermx history, it can go above 2.00 easily.

YES!! IT'S OCEANCASH. Tks flex

@flexibt- still searching. Think it's called sound isolation board meant for car. The company that manufacture this uses the same materials to make masks

@ikenduit- yes China produce more vinyl gloves but it's not meant for medical, more for food industry if not mistaken. But that itself is causing them problems due to pollution problems

@flexibt- I recall there is one company that manufacture some board used in car to minimize the engine sound. Sorry really don't know what that part is called. At the same time, they produce mask. Factory if not mistaken is located in Indonesia but its a msian public listed company.
@superbull168- already posted above why China do not trust their own products. Anything imported is considered high class and more reliable, so they prefer to use Malaysian gloves

BTW, gloves is also one of those products which u can only use 1 time. 1 patient or 1 procedure used, throw. Saliva dripping again!! Now I am looking for any msian listed company that produce mask or syringe. I recall there is 1 or 2 but cannot remember which companies. Help any one?

Follow up abt the talk I had after the agm meeting. One of the questions I raised was regarding China being able to produce and supply their own gloves. I meant since China can produce most things in huge quantity plus very much cheaper, what's there to stop them from producing nitrile gloves as well. The answer was that China people themselves have little faith in their own products especially when it comes to life and death matters. Think of their baby milk scandal for example. The issue was so bad until they have "professional buyers" buying milk fr overseas since they do not trust their own manufacturers. The same goes to gloves which is categorised as a health product; a barrier or means to prevent infections. Hence with Wuhan coronavirus spreading, you can imagine the amount of gloves needed not only in the world most populous nation but everywhere else as well. And looking at the current development, this virus is just at the beginning stage. With the upcoming CNY, you would hear/read the virus spreading to many more countries soon.
Why do I prefer Supermax to other glove counters? Simply because its price is way cheaper than the others. Being a laggard, it has more rooms to play catch up. Looking at the PE alone is saliva inducing!! Plus I like the fact that I can get 3.5x instead of only 1 of Top Glove or 4x versus 1 Harta.

Had a chat with mgmt after agm. My question to them is about expansion and competitions fr Thailand. Apparently they actually have more orders than they can supply. Majority of their goods are sent to US & UK and they are facing problems in supplying to Asia Pacific regions. Plus the fact that the future demands fr China and India mkts will keep their production lines busy. Reason being as these countries reach developed stage, the need to adhere to international health standards also increases. So the demands for gloves will keep increasing and msia gloves manufacturers has very good reputations in world market thus we always have an edge over new players.
I also find the management to be very focused in running their businesses. What they want is to bring value to it, hence the need to innovate, expand and renovate old factories. Also they are passing their batons to younger members of their families which I think is very good cos the elders are still there to guide them. One example is Cecile. Last year agm, she seemed to be unsure as to her position in the company, its like the responsibilities are suddenly thrust to her. But this year she seems to be more confident and is more articulate especially in her field of expertise which is the contact lenses division. So overall, my impression from this agm is very positive, hence I am adding more at this current price.

If I am not mistaken, Stanley mentioned before they would increase the dividend payout from the current 30% to 40%. Not sure whether they can start doing it this year seeing their EPS improving every financial year

Dear Phillip, thank you once again for such an excellent article. I enjoyed reading them very much and wished you and Choivo could one day team up to write an investment book solely on companies listed in bursa. Or like another poster suggesting writing a blog. Both of you are very articulate in your writing and investment analysis that it causes me to pause, think and see investments from many different perspectives. In short both of your writings help me and msian retail investors tremendously.

Will continue to add this stock to my long term portfolio. If you have been following and monitoring Supermx for sometime, you will notice price always drop when CW maturing. Next lowest one is C42 on 31/1, exercise price of 1.440. So “they” have to press the price down especially the last 5 days before X. After that ie Feb is C47- 27/2 ex 2.30 & C49-18/2 ex 2.50. Hence, you should see Supermx going higher in February (cos expected a better qtr report plus CW pricing above 2.00). So it is a good time to collect anywhere between 1.35-1.45 now.
Btw for newbies, CW is not issued by Supermx but by IBs. It can be quite frustrating sometimes when you see prices being manipulated for no apparent reasons even though the financial results were OK as in they weren’t dat bad to cause such huge drop (see qtr report Aug 29/8/2018 & how the price was pushed down fr 4+ to 3+ due to CWs maturing). On the other hand, I would take this opportunity to add on to my holdings because I believe in over a longer period, such price fluctuations is slowly edging up higher. Hope this explanation will help some serious investors into holding on to their purchases and not panic selling at a loss.

Based on CIMB research, then price of Supermx should be at 1.96? (1.58/19.37x24)

So accumulating more at this stage.