Their products manufactured for OEM customers like Apple/smartphone makers are at saturation points baring new technologies advancement to the tech gadgets at the current moment. Apple itself no more coming out with innovation that propelled it to the peak for the last 9 years.......now practically any smartphone makers can do what Apple can do and some could be advance a step than them.
So for Gtronic to go back peak at RM6.00 is almost impossible unless there is breakthru in technologies use in smartphone or any other tech,agri-bio, medical devices that can contributed bottomline to their production. Else i could jus value the stock in between 2.50 to 3.50 for time being based on PE 15 times.
Topglov chart pattern could be same like Gtronic but doesn't mean it will be same like Gtronic. Topglov is on expansion mode with buyout of other manufacturers to be the top in glove production and hence expanding their lines of products and also to increase their markets thus contributing to increased revenue and profits.
Whereas Gtronic solely a contract manufacturer for reknowned smartphone/devices manufacturer.......any slowdown will affect their bottonline.
Bear in mind Topglov is glove manufacturer and their products is use in all industries and consider a necessities.
2 difference company with difference industry and supply/demand.
I won't touch topglove, i think it is already at a risk reward ratio taht no more fun to trade. Every glove production compnaies seems like expand their productions but is there enough demand, and ringgit is rising slowly, so i wont take the risk.
ktsk88...i do agreed with u that 6.90 for gtronic is history now.Is last impulsive wave 5 top is at 6.90.Now unfolding the major corrections ABC waves.Watch out for the technical rebound wave B to get out.BEWARE!! After that the killer wave C will take over.Jst my2c opinion.Trade at your own risks.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Mohd Fahmi Bin Jaes
29,050 posts
Posted by Mohd Fahmi Bin Jaes > 2016-04-29 17:02 | Report Abuse
0.10