21 people like this.

23 comment(s). Last comment by cstan6243 2021-02-03 10:30

FairNSquare

1,464 posts

Posted by FairNSquare > 2021-01-29 20:15 | Report Abuse

well written bro. kudos !!!!

Posted by Michael Teng > 2021-01-29 21:01 | Report Abuse

Excellent write up. The RSS trades on 4th Jan 2021 need an in-depth analysis for any element of abuses.

LimitUp

394 posts

Posted by LimitUp > 2021-01-29 21:10 | Report Abuse

As usual you have helped us put into perspective why we should continue to believe that this investment will bring us extraordinary profits in the next few years.

Ben Tan

456 posts

Posted by Ben Tan > 2021-01-29 23:24 | Report Abuse

FairNSquare, Michael Teng, LimitUp, thank you for your comments.

Michael Teng, I agree that the activity, in particular on January 4, 2021, would have stretched the existing rules to the extreme to be properly justified. Unfortunately I didn't see a warning by the SC and Bursa back then (I might have missed it, sorry if that's the case).

Posted by Vairocana9999 > 2021-01-29 23:26 | Report Abuse

Thank you very much for your excellent write up, very precise and enlightening, bro Ben. Yes, indeed, due to structural change in the demand due to covid-19 pandemic, every gomen is busy drawing up plans to stockpile adequate PPE now and for the future. Hence, the demand of gloves will increase tremendously and the ASP will never go back to pre-covid level and it will stabilize gradually as mentioned by the big 4. Undoubtedly, the big 4's earnings will never go back to pre-covid level.

Posted by Imagine333 > 2021-01-30 10:55 | Report Abuse

Bravo Ben Tan. Excellent write up. Please continue to keep up with your great work.

Goldberg

2,677 posts

Posted by Goldberg > 2021-01-30 18:08 | Report Abuse

Excellent writeup Ben. Thanks!

Posted by JuzzyOracle > 2021-01-30 19:12 | Report Abuse

I just love reading your write ups, kudos. And yes, I have gorged on TG shares as well. Thank you so much!

Orlando

4,777 posts

Posted by Orlando > 2021-01-30 20:31 | Report Abuse

Why did the short sellers choose TG?

Gamestop is easier to fathom Gamestop is half dead

B4 short sellers came TG already battered by cluster Teratai

Orlando

4,777 posts

Posted by Orlando > 2021-01-30 20:34 | Report Abuse

Hi Ben

Can elaborate on this and if tis will show up in public records for u to account for??



.. or have confirmation of borrowing of the approved securities.




RSS trades require investors to either borrow the approved securities to be short-sold or have confirmation of borrowing of the approved securities. RSS must be undertaken in a designated account where sell orders must be placed at the best offer price or higher.

“The SC and Bursa

Ben Tan

456 posts

Posted by Ben Tan > 2021-01-30 23:46 | Report Abuse

Vairocana9999, Imagine333, Goldberg, JuzzyOracle, Orlando, thank you for your comments.

Orlando, on why the short seller has chosen specifically the glove sector (they are shorting the big 4, not just Top Glove) - the sentiment was towards a downtrend since the vaccine announcements last September. The factory-related problems of Top Glove only exacerbated the problem. However, none of these events caused any significant damage as far as the companies' earnings potential goes. So it's a good moment for a short seller to use the situation when media constantly attack the sector, to cause a shake-off of the weak holders and profit from the inevitable eventual rebound.

On the text you quoted, this is a standard message on how the RSS facility works on Bursa, nothing out of the extraordinary within this particular quoted text.

Orlando

4,777 posts

Posted by Orlando > 2021-01-31 10:12 | Report Abuse

have confirmation of borrowing of the approved securities


I meant wat is d mechanism how does it work?

Wil confirmation show up anywhere like d sales by SBL kind of announcement?

Is it just an intend to borrow no nid for d borrowed to change CDS acc?

Ben Tan

456 posts

Posted by Ben Tan > 2021-01-31 21:22 | Report Abuse

Orlando, that is a question which I believe can only be answered by someone intimately familiar with the operational part of the procedure. Unfortunately I don't have such insight.

sutp

14 posts

Posted by sutp > 2021-01-31 23:40 | Report Abuse

Thanks for sharing your well researched and insightful post. The anti-glove vaccine story has lost its bite as can be seen from the headlines and expert opinions in the press. Covid cases may come down, but new, maybe more virulent variants, will surface and this will bring new waves and keep demand for glove high. In 3 years, supply may catch up with demand and that's more than enough time for glove investors to make good money.

Regarding short sellers targeting glove counters, it does not necessarily portend doom for glove stocks. I think these players just want to get in at a lower price given how profitable the glove business is. The glove fundamentals are so strong that a bull run may not be too far away.

Orlando

4,777 posts

Posted by Orlando > 2021-02-01 10:06 | Report Abuse

Ben

My worry is wil tis nullifies ur figures balances consequently ur analyses?


Posted by Orlando > Jan 31, 2021 10:12 AM | Report Abuse X

have confirmation of borrowing of the approved securities

Orlando

4,777 posts

Posted by Orlando > 2021-02-01 10:11 | Report Abuse

Ben

Oso tis statement of yours is not right


..... and profit from the inevitable eventual rebound


Eventual rebound is of not use to d short sellers

Short sellers do not profit from subsequent rebound because after they bot back n covered their short positions their number of shares in hand is ZERO

Short sellers profit from how far they can push d price down n buy back at d lowest prices



Posted by Ben Tan > Jan 30, 2021 11:46 PM | Report Abuse 

....So it's a good moment for a short seller to use the situation when media constantly attack the sector, to cause a shake-off of the weak holders and profit from the inevitable eventual rebound

michaelwong

3,068 posts

Posted by michaelwong > 2021-02-01 10:27 | Report Abuse

Very knowledgeable write up by the writer's and all we gloves stocks holder's is to combine our efforts to hold firmly to gloves stocks counter and even continued to buy more now as the price is still undervalued bcos of its strong earnings and asp to teach this manipulators a lesson that in the end they might lost big shorting gloves stock on a daily basis .

If more investors are now equipped themselves with the informations contain with more buying volume exceeding the shorties spree like what happened to game stop , in the end this manipulators will panic to buy back fearing of losing more thurs themselves are helping to push the share price upwards .

Ben Tan

456 posts

Posted by Ben Tan > 2021-02-01 11:37 | Report Abuse

sutp, Orlando, michaelwong, thank you for your comments.

sutp, I agree that initially likely that was the main idea. However, the short seller was actually squeezed hard when the rumors for a new MCO started circulating in the same week they dumped the biggest part of their short position. I am sure this has changed a lot of their plans.

Orlando, I don't think so. The calculations are based on official data of activity released by Bursa Malaysia, so unless they are providing erroneous data there is no reason to believe the calculations are wrong.

Regarding your comment about my "statement", you have to read it in the context in which it has been written. Please read above sutp's comment, which is in line with what my thinking about the initial strategy of the short seller was.

SteadyT

318 posts

Posted by SteadyT > 2021-02-01 20:50 | Report Abuse

@Ben Tan

Hi, good day to you. Do you know if the short sellers have covered back last Friday? My broker said it could be. Which is part of the reason the price of TG got pushed up

CJkenho

46 posts

Posted by CJkenho > 2021-02-01 22:55 | Report Abuse

@SteadyT... So if it was them who bought like crazy before Fri 9am, then could it have been the local IB who was taking profit like crazy after Fri 9am? hahhaha...

Ben Tan

456 posts

Posted by Ben Tan > 2021-02-02 13:02 | Report Abuse

SteadyT and CJkenho, thank you for your comments.

SteadyT, we will not know that before Bursa releases the official figures tonight after 00:00 o'clock. We only know that the short seller was short selling Top Glove on Friday, so it might be rather unlikely that at the same time they were covering their positions.

CJkenho, it is hard to determine where most of the action was coming from, unfortunately.

cpchuan

14 posts

Posted by cpchuan > 2021-02-03 07:55 | Report Abuse

Hi Ben Tan, surprisingly net short position dated 2/2 shows zero Top Glove. It was 241,895,602 shares the day before. But, the trading vol on 29-1 was only 162m shares. So, the numbers don't add up? Any idea why? Thx.

Posted by cstan6243 > 2021-02-03 10:30 | Report Abuse

well said for the sharing and opinion, totally agreed on the fact and looking for 3-5 yrs CAGR +15 % yoy global glove demand in market

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