Reason why Macquarie downgrade TG is to save their own ass

Unlike a company warrant, a structured warrant is issued by an IB in return for a premium. So the first investor buys the structured warrant directly from Macquarie, and then the warrant is subsequently traded freely on Bursa just like any other share. At the expiry date, if the mother share price is above the warrant exercise price, Macquarie will settle the difference in cash. If the mother share price is equal to or below the warrant exercise price, the warrant will expire worthless.

Now in this case, Macquarie issued this warrant C67 on 3 February 2020 (before the covid19 bull run) with an expiry of 16 Oct 2020 (next month).

With an exercise price of 1.67 and an exercise ratio of 1.333, Macquarie will have to compensate in cash to all warrant holders if the mother share price close above RM1.67. For example, if the mother share price close at RM5, Macquarie will have to compensate RM2.50 per warrant [(5-1.67) / 1.33]. If the mother share price close at RM8, the compensation is RM4.76 per warrant [(8-1.67) / 1.33]. As you can see, even though the difference in the mother share price is just 60% (8/5), they will need to compensate 90% (4.76/2.50) more. This is the leverage effect of a structured warrant.

Now the next thing that people need to know - just 2 weeks ago, Macquarie issued a report with a TP of RM30. Today they issued a new report with higher profit forecast for 2020, 2021 and 2022 on the basis that ASP is increasing faster than expected.

At the same time, he halved the TP on the basis that "ASP cannot sustain forever". What changed the analyst's forecast within this short 2 weeks? Did he suddenly talk to industry leaders worldwide to realise that ASP will not last forever? He did not know how to do his job previously and suddenly now he knows? Did he suddenly have a crystal ball?

Or did some head of department from the derivative division realised they shouldnt have issued C67 because they didn't expect the bull run sparked by Covid-19, spoke to the IB CEO, who then spoke to the head of department of the research division, who then had a "word" with the independent research analyst?

I'm not accusing anyone of anything, I'm just stating the facts and "possible scenarios". You make the judgement. This is something we need to ponder upon before taking in the headline RM5.40 downgrade report.

@EatThis. Nice sharing. TG ASP is around USD$40-$60/1000 pieces currently. While retailers are selling USD$21+ for a box of 100.
Wow which means TG still has a lot of room to grow for their ASP in upcoming months

@Jeffreyteck dude stop comparing genm with topglove. They are not even related. GENM is losing money during this pandemic while TG is breaking record profits. Are you high?

FYI...Worth a read

Unlike a company warrant, a structured warrant is issued by an IB in return for a premium. So the first investor buys the structured warrant directly from Macquarie, and then the warrant is subsequently traded freely on Bursa just like any other share. At the expiry date, if the mother share price is above the warrant exercise price, Macquarie will settle the difference in cash. If the mother share price is equal to or below the warrant exercise price, the warrant will expire worthless.

Now in this case, Macquarie issued this warrant C67 on 3 February 2020 (before the covid19 bull run) with an expiry of 16 Oct 2020 (next month).

With an exercise price of 1.67 and an exercise ratio of 1.333, Macquarie will have to compensate in cash to all warrant holders if the mother share price close above RM1.67. For example, if the mother share price close at RM5, Macquarie will have to compensate RM2.50 per warrant [(5-1.67) / 1.33]. If the mother share price close at RM8, the compensation is RM4.76 per warrant [(8-1.67) / 1.33]. As you can see, even though the difference in the mother share price is just 60% (8/5), they will need to compensate 90% (4.76/2.50) more. This is the leverage effect of a structured warrant.

Now the next thing that people need to know - just 2 weeks ago, Macquarie issued a report with a TP of RM30. Today they issued a new report with higher profit forecast for 2020, 2021 and 2022 on the basis that ASP is increasing faster than expected.

At the same time, he halved the TP on the basis that "ASP cannot sustain forever". What changed the analyst's forecast within this short 2 weeks? Did he suddenly talk to industry leaders worldwide to realise that ASP will not last forever? He did not know how to do his job previously and suddenly now he knows? Did he suddenly have a crystal ball?

Or did some head of department from the derivative division realised they shouldnt have issued C67 because they didn't expect the bull run sparked by Covid-19, spoke to the IB CEO, who then spoke to the head of department of the research division, who then had a "word" with the independent research analyst?

I'm not accusing anyone of anything, I'm just stating the facts and "possible scenarios". You make the judgement. This is something we need to ponder upon before taking in the headline RM5.40 downgrade report.

Reason why Macquarie downgrade TG is to save their own ass

Unlike a company warrant, a structured warrant is issued by an IB in return for a premium. So the first investor buys the structured warrant directly from Macquarie, and then the warrant is subsequently traded freely on Bursa just like any other share. At the expiry date, if the mother share price is above the warrant exercise price, Macquarie will settle the difference in cash. If the mother share price is equal to or below the warrant exercise price, the warrant will expire worthless.

Now in this case, Macquarie issued this warrant C67 on 3 February 2020 (before the covid19 bull run) with an expiry of 16 Oct 2020 (next month).

With an exercise price of 1.67 and an exercise ratio of 1.333, Macquarie will have to compensate in cash to all warrant holders if the mother share price close above RM1.67. For example, if the mother share price close at RM5, Macquarie will have to compensate RM2.50 per warrant [(5-1.67) / 1.33]. If the mother share price close at RM8, the compensation is RM4.76 per warrant [(8-1.67) / 1.33]. As you can see, even though the difference in the mother share price is just 60% (8/5), they will need to compensate 90% (4.76/2.50) more. This is the leverage effect of a structured warrant.

Now the next thing that people need to know - just 2 weeks ago, Macquarie issued a report with a TP of RM30. Today they issued a new report with higher profit forecast for 2020, 2021 and 2022 on the basis that ASP is increasing faster than expected.

At the same time, he halved the TP on the basis that "ASP cannot sustain forever". What changed the analyst's forecast within this short 2 weeks? Did he suddenly talk to industry leaders worldwide to realise that ASP will not last forever? He did not know how to do his job previously and suddenly now he knows? Did he suddenly have a crystal ball?

Or did some head of department from the derivative division realised they shouldnt have issued C67 because they didn't expect the bull run sparked by Covid-19, spoke to the IB CEO, who then spoke to the head of department of the research division, who then had a "word" with the independent research analyst?

I'm not accusing anyone of anything, I'm just stating the facts and "possible scenarios". You make the judgement. This is something we need to ponder upon before taking in the headline RM5.40 downgrade report.

https://www.thetradenews.com/bursa-malaysia-rebukes-macquarie-for-mark...

Not the first time Macquarie manipulated the market. They make money from conning people like u n me.

First they scare retailers by giving fake analysis then after impressive TG qtr result they will jst revert back to their original analysis of TG TP of rm30.40 (before bonus issue). Simple way to make money for them.

U jst think lah TS Lim knows his business better than anyone out there, if it is overvalued he wont buy back his own shares lah. Sometimes I find it funny some analyst or sifu claim they know the future business of TG better than the boss himself lol

https://www.thetradenews.com/bursa-malaysia-rebukes-macquarie-for-market-manipulation/

Not the first time Macquarie manipulated the market. They make money from conning people like u n me

Why worry? TG order is confirmed till the next 540 days for nitrile gloves. Easily the bull run can sustain till at least for another 1.5 years. These analysts know that but they are greedy wanna collect cheap stocks from retailers like u n me

Haiyah how do you expect them to make more money from you? Now they scare the retailers so they can collect cheap, then after TG impressive QR result they will just write another analyst with their original TP of rm30.40 (before bonus issue). Simple way really

@Pgl1223 @Ahbeng Beng haish bunch of uneducated people barking. Give some facts dont simply bark nonsense

India recorded highest daily cases at 97,400 cases. With a population 4 times more than US, jst imagine how many gloves they will need.

https://www.google.com/amp/s/timesofindia.indiatimes.com/india/coronavirus-live-updates-indias-active-cases-poised-to-cross-9-lakh/amp_liveblog/78007256.cms

@drago_7 really the bosses are selling? More like Hartalega, Supermax and TG bosses has been buying back shares. Get your facts right!!

Vaccine coming soon?? I dont think so.
https://www.bbc.co.uk/news/amp/world-54082192

@Sharefisher why so sour? U got burnt by sharks last few days? Hahaha. Stupid people

After flushing out weak holders for last few days, it is clear sky for TG to fly now

Retailers are always the one prone to kena flushed out since most retailers panic when price drop and dont have much holding power.

With the upcoming fantastic QR result and bonus issue for TG why worry?

Some correction is actually healthy and necessary for the price to go higher.

Just see the facts and ignore the noises.

Facts:

Will the vaccine come out eventually? Most probably yes but it wont be easy and anytime soon as the virus keep mutating.

http://www.astroawani.com/berita-malaysia/covid-19-virus-mutasi-d614g-super-spreader-dikesan-di-malaysia-dr-noor-hisham-255399

How long will it take? Best scenario: 6 months to 1 year (this is provided that the virus stop mutating)

How long will it take for the vaccine to be administered to 7.8billion people? Months? Years? No one knows for sure. Lets say 1 year plus

Do you need gloves when the nurses and doctors injecting the vaccine to your body? Hell yes!!

So glove companies easily can enjoy impressive sales and profit for at least 2 years. There is a reason why their current order book is already fully booked for next 400-500 days.

Do the IBs and sharks know about all these facts? You bet they do.

That is why they purposely push the price down so that they can collect cheaper.

Just sharing my thoughts. Anyway happy investing

Lol fierce sharks in early morning, now they are reaping the benefits after clearing out weak retailers. Fundamentals is fantastic especially with upcoming QR result n bonus issue. Why worry?

https://www.reuters.com/article/us-health-coronavirus-germany-vaccine/german-institute-says-covid-19-vaccine-could-be-available-in-autumn-idUSKCN2581W3

Hopefully can collect more tmr

@stocksyndicate director selling??? Are you blind or ignorant?

@Shah Faisal Trading is not halted, are you high on drugs?

When you talk, please use some senses and facts. Use your brain a bit

Ya ya u have been saying for weeks now and yet EPF n KWAP is still collecting. You are so stupid

Target disposal = 300 million units??? EmperorFund just keep quiet lah, are you stupid, delusional or simply an idiot? You choose

You all should thank EmperorFund. He is giving you free tips, I earn a lot because of him. Jst do opposite of what he says. When he says sell u buy, when he says buy u sell lol. Thanks EmperorFund

EmperorFund BIG FUND holding 500million shares??? WOW. Dont make me laugh. Are you an idiot, crazy or just plain stupid?

Shhhh EmperorFund and his friends haven't wake up yet, they are still dreaming

@Jack Sparrow @Zuliana still dreaming that cancellation of myeg shares is due to the case, keep on dreaming lol. Read the facts, dont simply speculate.
https://klse.i3investor.com/additionalListing/0138/06-Jul-2020/25475_1197935713.jsp

EPF keep buying and yet EmperorFund says BIG FUND disposing. What a joker lol. Thanks for entertaining

He is sooo nice to tell us what is the BIG FUND doing. Such a generous person

Ya I just follow TP by EF rm0.87. He is the BIG FUND here. Wink wink

Sell all my positions today. Thank you LHI. I m worried about their next quarter result

TP by EmperorFund rm0.87 hopefully it will come true cause I wanna collect :)

Ya ya we believe you EmperorFund

https://www.theedgemarkets.com/article/myeg-rises-263-threeyear-extension-foreign-worker-employment-pass-renewal-contract

@Zuliana another funny joker

@Jack Sparrow what a disgraceful person. Want to create panic so u can collect low?? Try harder

Agreed w Yoda EF miss the boat so he want to collect low. Otherwise what is his benefit of giving negative comments every single day in this forum. Well unless he is crazy or stupid

@bignate2019 please see latest announcement EPF now 6.97% and KWAP 5.74% after their recent accumulation

https://www.theedgemarkets.com/article/myeg-rises-263-threeyear-extension-foreign-worker-employment-pass-renewal-contract

Big Funds is accumulating not selling lah. Are you blind or just plain stupid EmperorFund? Just see how much EPF has been accumulating last few weeks.
Please change your name to BeggarFund suits u better

Big players are still accumulating. Jst look at the huge buying volume happening at 1.56. They will only let the price rocket once they accumulate enough

@EmperorFund seriously why are u still even barking here? "Your sources" say myeg wont win the contract and yet they DID for 3 years. U got no shame kah? Or something wrong w your brain?

@newbie5354_ Selling volume 200k u also make noise, please look at EPF how much they have been accumulating. These big boys have the insider news not people like us

Wondering what happened to these guys with their so called reliable sources: stocksyndicate, EmperorFund, EDINVESTOR

Congratz to those who have hold and ignore the -ve noises in the forum lol. RM2 coming soon!!

@EmperorFund seriously why u bother to comment in myeg forum if all u do is to say -ve things? What is your benefits other than to create panic so you can collect low? Seriously get a life dude

I wont be suprised if EmperorFund secretly collecting myeg. He hope by spreading fake news people will panic so he can collect cheap. Too bad people are not dumb u know lol

Haiyo EmperorFund wanted to create panic for us to sell so he can collect cheap. Why so hard to understand? Do u think people so generous nowadays by giving FREE tips like him?? In fact his sources told him to buy but since he wanted to collect low he wanted to create panic first. THINK GUYS!!

Time for myeg to shine. https://www.theedgemarkets.com/article/myeg-partners-s5-strengthen-bid-niis-contract