Cincai people like mahsing with no previous glove experience can set up gloves production & become one of top gloves producer in msia within 6 mths loh! Thus u can expect a glut in future gloves mkt loh!
In technology...u cannot do that...there are huge barrier of entry..in terms of technology knowhow mah!
Lu tau boh ?
Posted by treasurehunt > Aug 14, 2021 12:11 PM | Report Abuse
Talking so much about earnings peak in glove sector in last 6 months. Earnings peak of Nesdaq companies in next 6 months.
High bearer of entry in Technology sector but the sector is encountering serious shortage wafer supply. It takes more than 2 years to build extra capacity. How on earth technology companies able to increase robust turnover and earnings in year 2022?
Thats why big prospect bcos of big demand & wafer shortage....very big existing back log orders to fulfil mah!
Posted by treasurehunt > Aug 14, 2021 12:39 PM | Report Abuse
High bearer of entry in Technology sector but the sector is encountering serious shortage wafer supply. It takes more than 2 years to build extra capacity. How on earth technology companies able to increase robust turnover and earnings in year 2022?
" Now, the impact of the supply crunch is spreading to consumer tech. Apple CEO Tim Cook warned last week that a limited supply of semiconductors would hurt sales of iPhones. Microsoft is struggling to make enough Xbox consoles and Surface laptops. Elon Musk told a court last month that the chip shortage meant Tesla would only be able to manufacture about half as many Powerwall home batteries as it thinks it can sell. "
Upstream players, Wafer & chips manufacturers will be fetching good profits next year as chips supply crunch has occurred and many tender high prices to secure their requirements. It doesn't mean downstream players would be benefited as well.
Anyway, long haul investors of mid & downstream industries would ignore the short and mid term effect of the supply crunch. It is back to your investment horizon in the end.
abang_misai I would like to thank calvin tan for his warning he dished out timely so that many can get out as soon as possible to protect capitals 14/08/2021 1:03 PM
TSMC announces the turnover every month. It is a source to track bottleneck output volume and gauge the max capacity and the how long the crunch situation persist.
IBs have been talking so much dropping of glove ASP until 2 years later. No IB mention the consequences of supply crunch semiconductor chips from now to 2 years later. All IBs are shouting technology growth nonstop without taking a breath in the middle.
TSMC output will be hitting max 3rd Qtr 2021. No room for adding new capacity over the next 2 years. What would happen to the mid and downstream players in next 2 years?
Revenue 'million
30 Jun 21 - TWD 13,289 31 Mar 21 - TWD 12,919 31 Dec 20 - TWD 12.676 30 Sep 20 - TWD 12,138 30 Jun 20 - TWD 10,385
The market has priced in semiconductor companies to report better profits in the next 2 quarters max. No big deal. Everyone knows well and it is similar with the investors know glove ASP decreasing as new supply capacity emerged.
TSMC is the price setter of semiconductor chips and the market offers merely PER 30x. The company will keep growing in next 2 years as they can simply increase prices of the products. TSMC, Samsung and Intel had their plans for the new chips factory. Unfortunately, the new capacity will only be ready after 30 months.
In the absent of new chips capacity, how on earth our Bursa OSAT, ATE and EMS to grow the business in year 2022 and 2023?
Global chip shortage may last until 2023, says Infineon CEO Author: Tan KW | Publish date: Tue, 17 Aug 2021, 10:37 AM
FRANKFURT: The global chip shortage that’s hampering companies from carmakers to computer manufacturers may linger for years, according to Germany’s biggest semiconductor company, Infineon Technologies AG.
The scarcity “may stretch into 2023” in areas where capacity expansion is slow to catch up with consumer demand, Reinhard Ploss, chief executive officer of Infineon, said in an interview with Frankfurter Allgemeine Zeitung.
“Building new facilities and clean rooms in which the silicon wafers are processed into chips can take two to two and a half years; upgrading existing facilities three quarters to one year,” he said.
The chip crunch this year is hurting production at companies from Tesla Inc to Apple Inc and Microsoft Corp.
The amount of time it’s taking for manufacturers to get orders filled stretched to more than 20 weeks in July, worsening from the previous month, research by Susquehanna Financial Group showed.
Increased work-from-home needs and the catch-up effect in the automotive industry following pandemic-fuelled delays have become major drivers for the chip industry, according to Ploss. He also cited faster adoption of electric cars and growing demand for renewable energy among factors contributing to the shortage.
Among European companies affected is Volvo Car AB.
Its plant in Ghent, Belgium plant won’t run for three days next week due to chip shortages with some 5,000 workers being temporarily unemployed, the De Tijd newspaper reported, citing a company spokesperson.
The plant had shut for five days in the first half for similar reasons.
Ploss called for more efforts in Europe to reduce the continent’s dependence on foreign exporters in the semiconductor business.
He’s “open” to cooperating with other companies as long as it fits Infineon’s business strategy, he said.
[[The shortage of workers has been identified as the cause of the 20% to 30% decline in the production of fresh fruit bunches.
"Our palm oil (industry) may not grow as stellar as before, due to limitation of plantation areas and we cannot compare the volume with Indonesia]]
Management already given performance warning so need more alert
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Posted by calvintaneng > 2021-08-14 11:25 | Report Abuse
CynicalCyan
You are correct on local tech stocks
US's Apple looks ok
If Fed continues money printing Bitcoin and Ethereum will also go up
If not still local tech stocks now too high in valuation
Cepat earns 3.07 sen just like Greatec earning same 3.07 sen but Cepat is less than 10% of Greatec
That is why we should go for undervalue palm oil shares as a whole
Over a short term the stock market is a voting machine but over a longer term the stock market turns into a weighing machine