To be success in glove counter investing, you must understand how the Glove Industries work.
1) You go to ask around, if today you want to buy glove (large quantity), you see who's products in the market? I am quite sure you cannot see Supermax product, Topglove product and even Kossan products. But Hartalega products (i.e. Coats, Paloma, Gloveon) are flooding in the market, together with other small player such as WRP, Sithrang, Cranberry, and some small player who your never heard before.
2) If today you want to buy glove, you directly go to find the manufacturer (i.e. Harta, topglove, kossan, ruberrex...etc) no one will entertain you. To buy glove, you must use all your network relationship to connect to the Allocator. This Allocator normally are those who own the stock and production line. They are the one who decide want to sell you the stock or not, and price is also controlled by them.
Can't reveal too much, but one thing sure is a now market got a lot of Sifu and Guru-guru they have limited knowledge in Glove Industries, but they act like an expert and share their knowledge to the public.
Posted by GiantPanda > Oct 11, 2020 2:42 PM | Report Abuse
The latest Quarterly Result for April to June 2020
Profit After Tax PAT Harta PAT RM 220 Million SUPERMX PAT RM 400 Million 400 / 220 = 182% SUPERMX very much Higher than Harta
Net Profit Margin Harta 24% SUPERMX 44% 44% / 24% = 183% SUPERMX very much Higher than Harta
Earnings Per Share Harta EPS 6.49 SUPERMX EPS = 30.58 before 1-for-1 Bonus Issue 30.58 / 6.49 = 471% SUPERMX very very very very very much Higher than Harta
SUPERMX EPS = 15.29 after 1-for-1 Bonus Issue 15.29 / 6.49 = 236% SUPERMX STILL VERY VERY VERY MUCH HIGHER than Harta
Harta Last Price RM 17.40 Market Cap = RM 59,640 Million
SUPERMX Number of Shares Outstanding after bonus issue = 2,721 Million shares
When Harta and SUPERMX announce the next quarterly result for July to September 2020 in early November (SUPERMX could announce earlier Anytime from now in October as not its financial year end quarter; Topglov released August end result in on 17 Sep in 17 days, Supermax sure can do in 30 days by end of October, up to the management team decision),
Harta probably PAT RM 300 Million another record high profit
SUPERMX possibly PAT RM 900 Million Superb Explosive Bombastic Record High Profit
RM 900 Million / RM 300 Million = 300%
SUPERMX Profit After Tax PAT WILL BE TRIPLE (3 TIMES!!!) of Harta
SUPERMX Earnings Per Share WILL BE QUADRABLE (4 TIMES!!!!) of Harta
The sickest stock market in the world Bursa is full of the dumbest investors among all the parallel universes still sleeping under the old perception
many still think the most efficient producer will reap the biggest net profit, they forget that the most efficient business model to get their product sold at the highest price will reap the biggest net profit!! TG will be the ultimate winner and SUPERMX net profit will reach saturation/plateu...
aiyahhh just invest the stock more to gain rather than arguing on the PAT PAT PAT of the big 4 laaa...it's not like they will give you the cash...just invest more of your own cash to enjoy the gain la... -_-!!
i dont accept Albukhary's points. when Albukhary said how many products you can see on the market belong to the other 3, you have to ask how many brands you see that you know is not from them? The question is how many brands on the market that are taking gloves produced by the same companies and we dont know about it because its confidential? Malaysia supplies over 60% of rubber glove market, Top glove alone take at least 25%, and this is before they overtook harta to be the largest nitrile glove producer. Simple maths. You look at the statistics, if topglove and supermax can achieve 300% profit growth by quoting USD100 for spotorders, what was their original price? What is harta's glove precovid price then, do you believe harta "did not raise price during covid" or do you believe "harta did not get to raise much" because precovid they are already selling at covid prices? Where did the extra profit go? Pesearch? wastage?
Back then i used to badmouth topglove for they stupid work more but sell cheap mindset (you know when you mark you products cheap prices, people judge your products as cheap stuff before they think about the possibilities of you just trying to be less of a money sucking jerk), now i understand edi. The power to adjust glove price is like an ulti skill, you have to be able starve yourself in conditions worse than than your opponent and still perform.
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....
Albukhary
2,719 posts
Posted by Albukhary > 2020-10-11 16:11 | Report Abuse
To be success in glove counter investing, you must understand how the Glove Industries work.
1) You go to ask around, if today you want to buy glove (large quantity), you see who's products in the market? I am quite sure you cannot see Supermax product, Topglove product and even Kossan products. But Hartalega products (i.e. Coats, Paloma, Gloveon) are flooding in the market, together with other small player such as WRP, Sithrang, Cranberry, and some small player who your never heard before.
2) If today you want to buy glove, you directly go to find the manufacturer (i.e. Harta, topglove, kossan, ruberrex...etc) no one will entertain you. To buy glove, you must use all your network relationship to connect to the Allocator. This Allocator normally are those who own the stock and production line. They are the one who decide want to sell you the stock or not, and price is also controlled by them.
Can't reveal too much, but one thing sure is a now market got a lot of Sifu and Guru-guru they have limited knowledge in Glove Industries, but they act like an expert and share their knowledge to the public.