Posted by Seec0006 > 2021-03-30 18:16 | Report Abuse

I like the way how you write article. Especially on how you phrase the sentence and also supplemented with statistic. Keep it up Ben.

Posted by Albukhary > 2021-03-30 18:45 | Report Abuse

Ben Tan, I really appreciate all your article, it was so informative, and all quote was supported by the fact n figure, as well as the original source.

If one day you publish your own book or journal, please let me know, I will definitely support you.

Posted by katsul51 > 2021-03-30 20:06 | Report Abuse

Once again great article Ben. Appreciate you effort

Posted by pjseow > 2021-03-30 21:11 | Report Abuse

Ben Tan, thanks for your good article.I agreed with your analysis.
Since the ban imposed by CBP,there was no shipments from Malaysian plants and the last two qtr results were without the Malaysian shipments. This ban on future shipments has a lot of implications since Topglove has stated that corrective actions had been taken.

Posted by Brutus > 2021-03-30 21:21 | Report Abuse

Master Ben, excellent analysis!

Posted by abang_misai > 2021-03-30 21:37 | Report Abuse

Supermx ada chance. 25% of topglove taken out means >100% increase for supermx

Posted by bpsiah > 2021-03-30 23:47 | Report Abuse

Put an American government lobbyist in Top Glove mgmt all will be fine. Ha ha. Ben, thanks for the good write up.

Posted by Anthem2 > 2021-03-31 12:15 | Report Abuse

Targetting TG was easy..... TG's exposure to the US market is hugely insignificant. Try doing the same to HARTA or SPMX and where are they gonna get their gloves from? Basically all it needed was some whistleblower with a hidden agenda and a civil servant in her final workday who wanted to leave behind some legacy of work being done and lo behold.....here we stand now! The RSS stakes were high, a matter of billions and this game had to be played at the highest levels. The low volumes seen prior was not going well for the shorts covering before dividend pay out date. Something drastic had to be done to initiate some form of panic selling, I was expecting worse.
Sensing that this is all temporary, as easy as it was issuing a Findings Notice, a revocation will be issued in due time.....didn't someone once say "Volatility is Wall Street's (Investment Banks)best friend!

Posted by Ben Tan > 2021-03-31 12:17 | Report Abuse

Seec0006, Albukhary, katsul51, pjseow, Brutus, abang_misai, bpsiah, Anthem2, thank you for your comments and kind words.

pjseow, yes, this was my understanding as well, based on management's briefings. Any shipments to the US were originating only from factories outside of Malaysia.

abang_misai, I believe Supermax will be a major beneficiary, too. They have been increasing their capacity the most aggressively (only after Top Glove themselves), so they may be able to handle some orders that might have previously been put with Top Glove.

Anthem2, yes, I too believe this goes well beyond anything Top Glove could realistically do. It doesn't seem like the matter is in their hands to resolve, based on all the publicly available data.

Posted by Albukhary > 2021-03-31 14:28 | Report Abuse

Ben Tan, regarding the CBP claimed that Top Glove is using Ex-convict labour, I want to emphasis that this is actually Malaysia Government initiative to encourage manufacturer to engaged Ex-convicts, Parolee...etc. You can google it around, LHDN is actually offering Double Deduction Tax Incentive for company who employed Ex-convicts and Parolee.

http://www.federalgazette.agc.gov.my/outputp/pua_20190611_PUA164_2019.pdf

I have many friend work in manufacturing line, they also consistently approach by some agent from Jabatan Penjara, to ask them for hiring those ex-convicts and parolee worker. This is the initiative from the Government to ensure all these ex-convicts parolee can survive in the job market.

How come now this good initiative become a problem that restrict Top Glove from export its product to US market.

Posted by Anthem2 > 2021-04-01 10:32 | Report Abuse

Sensing some fear in the shorties ranks. Sell volumes not as anticipated and "money talks" when it comes to hiring the best lawyers! Looking at a quick resolution to this CBP issue, when because of its minimal impact, was low on TG's list. This new fiasco has galvanised them into action. Coupled with the dividend payout next week where I believe a huge percentage will be re-invested, a nightmare scenario for the shorties is emerging.