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.
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).
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.
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.
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, 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.
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.
..... 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
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 .
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.
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
@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...
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.
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.
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....
FairNSquare
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Posted by FairNSquare > 2021-01-29 20:15 | Report Abuse
well written bro. kudos !!!!