A timely piece of good writing, Ben. With regards the article of Tropicana disposing TG shares, I was made to understand that the realized losses from the disposal was hugely offset by the dividend payouts and they still hold a considerable amount. Can someone confirm that?
LimitUp, gohkimhock, Goldberg, batman666, alwinchg, Bizfuneng, Targeted, Dante5566, George Leong, signn, TheOwlsandWolves, Anthem2, thank you for your comments.
Anthem2, according to the announcement, Tropicana still hold 12,470,000 shares of Top Glove. They assume RM2.6 million loss on the disposal of 1,850,000 shares, so RM1.40 per share. Since they've bought the shares in December, they were entitled to two dividend payments - RM0.165 + RM0.252. So their loss is about RM0.99 per share. They don't provide much of a justification on this action, but they say they will be using the proceeds for working capital. Here is the announcement: https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3148964
The down reconfirmation look going to right.Because monthly still hooking down.Tht the danger point.Expect glove stock will tank back in 5-10 trading days starting 19/10/2021.
Tropicana was probably in need of immediate funds and this to them was the best way forward without incurring further losses. If it was a loss of confidence in TG , it definitely would have been more than just the 13% of their total holdings.
Tropicana was probably in need of immediate funds and this to them was the best way forward without incurring further losses. If it was a loss of confidence in TG , it definitely would have been more than just the 13% of their total holdings.
JPM’s research is low quality with lot of flows. They don’t even know bother to adjust the target price for TG following the additional special dividend & HK secondary listing announcements.
By end year 2022, shareholders of TP might have collected closed to RM1.50 to RM2 per share dividend. Whether this dividend paid is added back in JPM TP? Seems like they don’t bother to answer neither.
Nothing is coincidence in this world of stock market. Their report is with intent. Why should Bursa open RSS since most are played by foreigners and have consistently selling Malaysian equities. "opinions only".
A YEAR has elapsed and the world is currently facing a resurgence of covid 19, in fact the numbers are registering new highs each day- even with the rollout of vaccines.
What does this say ?
1- Covid 19 will be around for a very long time.
2- Vaccines are not a cure - it does help by reducing the mortality rate. Thank God for this.
3- More deadly and virulent strains from mutations are on the rise and may render existing vaccines ineffective. To survive the virus mutates in to strains that may escape the defence brought about by vaccines.
4- Too much greed in this world especially the rich nations depriving the poor nations affordable vaccines- this will render herd immunity for the world impossible.
5- Premature opening up of economies by most countries and the believe that rollout of vaccines will just ward off the virus. This false sense of security is disturbing.
6- Refusal to adhere to SOPs- particularly in western countries.
JP Morgan and their cohorts just refuse to accept the above and is so determined to destroy Malaysia most valuable sector ie GLOVES. .
It is very sad that they have found willing lenders of shares ie EPF the main betrayer to lend their shares to JPM to forcibly bring down the value of the Big 4. EPF you have blood on your hands and should be brought to justice.
Demand for PPEs especially Gloves will be elevated for a long time. The world is currently facing an acute shortage and is going to persist for a long time- even with new and expanded capacities
As Malaysians, we should all be united and act against these Foreign Manipulators-JPM.
Did Tropicana really lost money by disposing some of their shareholdings? It depends on how one looks at the situation. As far as I know Tropicana bought their shares on different occasions and with different prices. Some higher and some lower. I read somewhere the amount sold were in fact higher than the lowest price they paid for a portion of the shareholding. Based on average, yes, they sold at a lost as far as we can see at this point. However, this may not be the final answer because as we all know Tropicana is still holding a bigger amount of the share. If TG price is to increase subsequently much more than their purchased price and if they manage to sell the balance at the much higher price then it is not a lost as we see now. The show isn't finish until the end. My 2 sen opinion.
Superb report. India and the world experience 3rd or 4th wave. Msia gloves co still cannot meet demands. Vaccine too not totally effective. Let's see 3rd, 4th, 5th wave in gloves shares.
Ben Tan, I enjoy reading your articles. From the content, it is clear you have given much time and effort in the research and you back them up with figures and data. Great analysis, you deserve much recognition compared to many unscrupulous "analyst" from IBs. Keep it up~
Demand for nitrile gloves drop 67% from Dec 2020 to Feb 2021. Nitrile=510 days to 200 days Note: Last meeting in April 2021 for ESG issue, updates from Tan Sri is 170days
Michael Kwok, Anthem2, stockraider, will75, Likey_Greek, henry888, Goldberg, bpsiah, super168, skyz, newbie80808, thank you for your comments.
newbie80808, you seem to be missing a lot of important points, most of which are covered in the same slides you are quoting:
1) The sequence of events is that from the normal lead time of 30-40 days, the lead time increased to 510 days for nitrile gloves and 340 days for latex gloves. Only after that it "decreased" to 200 days for nitrile gloves and 295 days for latex gloves. In other words, the "shortened" lead time is still 5-10 times longer than the lead time in normal times.
2) The reason for the decrease in lead time, as explained in the slides, is due to new production capacity coming on line (+20%), and conversion of latex glove production lines to nitrile glove production lines (hence the decrease in lead time for latex gloves is much smaller).
3) Another factor is that between the two presentations you are quoting, there is a time period of over 100 days. It is normal and expected that lead time will revert to close to normal once the emergency demand due to the harshest phase of the pandemic is satisfied. As Top Glove's production lines for nitrile and latex gloves are interchangeable, let's take the simple average for lead time: in December 2020 = 425 days, and in February 2021 = 250 days. This means that the actual decrease in delivery time for the period is 75 days, which is 17.6% decrease, explainable with the 20% increase in production capacity.
i ever read a comment in investing.com. He commented don't trust JPM, they never meet the forecasted. I realized many others also agreed with the statement. I think they are not provide a good market analysis but try to manipulate the market.
............actual decrease in delivery time for the period is 75 days, which is 17.6% decrease, explainable with the 20% increase in production capacity.
Should it be:
.........actual decrease in delivery time for the period is 175 days, which is 41% decrease..........
paperplane, Yong Ken, thank you for your comments.
newbie8080, it's not a typo. As I explained, between the dates of the two presentations you are quoting there are 100 days, so you can discount that period as -100 days of excess emergency demand due to the pandemic.
On one hand giving negative on gloves, on the other hand, foreign funds are the largest buyer of glove stocks for the past 2 months.
very simple, FF won't come in when fully valued or priced in, then where is the meat? They have to come in when its way undervalued, and JPMoragn report is doing that favour for them .
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....
LimitUp
408 posts
Posted by LimitUp > 2021-04-17 12:11 | Report Abuse
Jpm is going to get screwed by the market.