For the benefit of members who have bought in at a high and are stuck with Solution, I have considered 2 hedging glove-related stocks with proven fundamentals and profits:
DANONCE TECHNOLOGY (7114) SAMCHEM (5147)
Both are suppliers to the glove and healthcare industry and they are now trading at a relatively low PE ratio and stock price. D'nonce is an especially good pick as its Q2 is coming out in 30 days time and for the last 3 quarters it has been recording profit growth. The recent corporate presentation and management mentioned they're currently experiencing very strong orders and are operating at maximum capacity, in tandem with the robust demand for gloves.
From its recent corporate presentation, and google map, we can guess with high accuracy that TOPGLOV Thailand and Sri Trang Glove are their clients.
Currently projecting a base case RM 15m of net profit for FY2021, which translate into 5.7c eps FY2021. Extrapolating that into 15x PE based on conservative valuation. TP by analyst: 0.8-1.0
Samchem is a chemicals company supplying chemicals to glove companies to manufacture gloves. Also a solid company with strong fundamentals and growing profits. TP by analyst: 1.23
This is not a buy call, just for the members hedging thoughts. Let me know if you agree after you read up more on these stocks and their business.
Please note that the idea of hedging is meant to counter the turbulence and weakness of the pharma stocks. I still continue to believe Solution has its own potential upside but with market sentiments swaying, it would be advisable to not put all your eggs in one basket. At the same time, I do not advocate speculating in penny stocks. My definition of penny stocks are stocks with no proven track record and are trading at ridiculous prices relative to their profits.
I only would advocate hedging stocks with the following criteria:
1. proven track record and profit growth. 2. strong management team and visible corporate earnings, 3. transparent management ideas such as presentations and press releases so we know what is going on with the company. 4. glove related preferably as glove demand will continue to be elevated. 5. strong fundamentals and relatively low PE ratio 6. current price still demonstrates an upside (massive upside 30% or more) and not over-priced so that there is still gain to be made without investors taking ridiculous risks.
It was in discussion before that Malaysia becoming the hub for vaccine production. Earlier it was planned that Malaysia take part of the clinical trial for vaccine produced by China. However, because no of patients are low, they moved the trial to other countries such as Brazil. But once the trial ended, Malaysia could be the hub for vaccine production. I hope they do it in Malaysia since it can contribute towards the economic of the country. But why Solution? Not Dpharma etc... It's because.....
CanSino, the underdog of the three, was founded in 2009 in Tianjin, north-eastern China, by a group of senior professionals from various multinationals.
For instance, Dr Xuefeng Yu, a Canadian passport holder, was global head of development for bacterial vaccines at French pharmaceuticals company Sanofi Pasteur. The company listed in Hong Kong in March 2019 and in Shanghai in August 2020.
In 2014, CanSino became the third pharmaceuticals company to develop a vaccine for Ebola. In July 2020, its coronavirus vaccine entered stage three clinical trials, and in August its patent was formally approved in China. The clinical trials are being done in Saudi Arabia, Mexico and with soldiers from China’s People’s Liberation Army (PLA).
CanSino, meanwhile, has strong links with the Institute of Biology at the Academy of Military Medical Sciences, an arm of the PLA, through a collaboration with Dr Chen Wei, who was pivotal in developing CanSino’s Ebola vaccine, and probably explains CanSino’s COVID-19 vaccine trial on soldiers.
Tuesday is the show. China has used their vaccine, the others like Brazil, Middle East countries have openly welcoming that. Can't you imagine the progress? Good news are keep coming. What you hesitate for? Tell you what. Sifu and fake sifu are secretly dumped their glove share. They will only inform after they dumped all, IB willl be the same too. If they announcement their chnaged mind now, they will not able to sell anymore or have to bear the loss. Is logic. Please check and buy solution now!
Many others thought this is goreng one week ago. Now you see the price is still around there? Why? Coz the fact is there with market consensus. Now u thought the price is too high, after Rm1, Rm2, then you won't think on it.
Vaccine is a multi-billion dollar business and this pandemic has pushed a start for starters/small players. Won't deny the fact these counters have potential to gain; Solutn to be >RM1
29/8/20 news frm The Edge and WSJ: Chinese pharmaceutical maker CanSino Biologics Inc is in talks with several countries to allow its coronavirus vaccine that’s in development to be used on small groups of people before large-scale safety and effectiveness trials are completed, the Wall Street Journal reported.
The company is speaking to Pakistan, several Latin America countries and some developed nations
A STANDING joke among listed company officials these days is to say in jest their company is getting involved in some kind of Covid-19 related business. It doesn’t matter how serious, big or small the venture is, what’s important is making that announcement will likely lead to a surge in the said company’s share price.
Still day dreaming. Many bilis stuck on top and more to come. All bcoz one sohai keep promoting MOU of no capacity and no capability company. Wake up guys.... Get the real one.
FROM MOU...BORN A POTENTIAL RM 1 BILLION SOLUTION COMING LOH..!!
JUST LIKE MUST GET PREGNANT 1ST B4 A CHILD IS BORN MAH...!!
LU TAHU BOH ?
Posted by ikenduit > Aug 30, 2020 11:51 AM | Report Abuse
Still day dreaming. Many bilis stuck on top and more to come. All bcoz one sohai keep promoting MOU of no capacity and no capability company. Wake up guys.... Get the real one.
BODOH LOH...U THINK SOLUTION DIRECTORS DARE SIMPLY SAY AH ??
DARE WANT TO GO TO JAIL & MAKAN CURRY RICE EVERYDAY MEH ?
SURELY MOU...MUST BE REAL BARU CAKAP MAH...!!
Posted by Hafidz Pisex > Aug 30, 2020 11:53 AM | Report Abuse
I dare you to post announcement from cansino itself here. Saying they work with solution in malaysia. Not the other way around. If u have that i follow u.
Do u want to be pondan hide here, hide there for the rest of your life bcos of covid19 meh ??
CHINA MILITARY PEOPLE ARE HONEST, HONORABLE & LOYAL PEOPLE MAH..!!
THEY ARE VERY INTELLIGENT & BRIGHTEST PEOPLE U CAN TRUST MAH...!!
CANSINO VACCINE IS THE BEST & SOLUTION THEIR DISTRIBUTOR MAH..!!
Posted by 817065 > Aug 30, 2020 12:13 PM | Report Abuse
Let's be honest to ourselves. Say if a covid-19 vaccine is available in Malaysia today, will you want to be vaccinated since it's a new vaccine with unknown long term effects? Would you want to take the risk?
Posted by SUPERM > Aug 30, 2020 12:38 PM | Report Abuse
Stockraider.... stop the nonsense. Go other forum that u undoubtfully managed 2 con those ppl.
Test on superbly healthy ppl in military may be good, but there are children and old folks that are not at that level of fitness. Patient pool is different.
Of course u can twist this. I am very happy with progress of Cansino vaccine, but the real commercial benefit is far away from Msia companies. . Face the reality!
Glove stock is pure goreng now. No future. Only Vaccine is visible for future now. Glove has met their max limit. Even Ambank also published their finding to warn all investor, don't ever buy more on glove. Is neutral call and not buy call now! All investors will shift their fund from glove. counting down less than 1month to go.who want take the last ship?
Yes but less frequent use of gloves compare with now mah...!
Plus gloves over capacity coming mah...!!
Risk management mah...!
Posted by Mabel > Aug 30, 2020 12:45 PM | Report Abuse
Aiyaa no need to fight lah...There's so much cakes on the table for everyone to choose...
Here are my motivations: 1. If there is mass vaccination, those administering will need gloves hence demand is still there. 2. Those who use gloves already won't stop using just because a vaccine is found. This is because of "hygiene practice", yes the SOP. Various other sectors have adopted this best practice such as F&B. 3. There will be major need to stockpile replenishment by government and healthcare providers around the world due to the vacuum left by this pandemic.
This counter went up 6x from early August just because of a single news? Technology go into vaccine like any tom dick harry also claim they know rocket science?
Wow, if I'm shark already full from the 6x profits liao! Already reached further than the ceiling price, can only go down from now. Downtrending stock, ignore and fish for others with rocket potential lor! Need think alike like sharks mah!
stockraider: if this stock does not rise up so much recently, definitely a potential buy because of the vaccine news. However, it has run up to a very risky level already, not worth to go in now. If based on probability analysis, this one has low probability to win at the price now!
stockraider: too much of something is not good, you never learn this lesson in your life before?
Aka too much of your promotion bla bla bla is not a healthy sign.. Please do more positive things with family and friends, hobby etc and not spend too much time feeding your ego in the stock market forum!
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....
graphic
54 posts
Posted by graphic > 2020-08-28 17:15 | Report Abuse
what mean eagle has landed? u mean wont up just stable around 0.6-0.7?