Esceram is in the bottom group for Covid 19 glove sector play. For beginners who did not take profit on 13th morning session missed a very rare opportunity. Try not to average down and move away to other under valued blue chip stocks.
based on the old article from thestar, glove former can only last approximately 12 to 18 months. as the demand for gloves are increasing by a few times, Topglove, Harta, Kossan, Supermax, etc sure will require more glove formers. hence, if their glove demand increase by 4x, esceram sales also should also increase 4x. Esceram is the only listed company in Malaysia that supplies glove formers.
A lot of disposed might done from the shareholders lately ... just a sharing from a fren which known the insiders ... just be cautious ya #nohardfeeling
Esceram share movement is not moving up in tandem with Covid 19 glove play despite many doing very well. For beginners who are stuck in the 0.50 sen range, do not be tempted to average down (unless its drops to low 30 sen +). Good luck.
Read the edge report done 10 years ago on Ice cream :- 1. they are the biggest manufacturer of hand formers IN THE COUNTRY & PROBABLY IN THE WORLD !! 2. replacement period of hand formers is eight to 15 months, depending on the intensity of the production run in the rubber glove plant. 3. In 2010, their net borrowings is (RM23.9 million ), now they turn it into net cash 20 mil !! hard cold cash in their bank account, no fake accounting paper profit !! also means they accumulate around 40 millions cash in their account !!
Today's Starbiz reported on 23 companies beneficiaries of Covid 19. And Esceram is Not on the list. Besides i3investor, beginners must read up other business reporting too before trading.
mike555, if you read the starbiz report carefully, they do not recommend you to buy those 23 companies ! In fact, they hinted that some companies are hype-playing and over value !
such as those companies rushed in to do face-mask, sanitizer, text-kit, IT related etc products. Those products have low entry-barrier, and most are lousy companies with lousy loss-making track records ! You go and research you know which cos I am talking about. For example, face mask, now china factory can straight away produce X5 capacity and flood the market and squeeze the profit margin ! do you invest in those bursa companies just talk cock in press and said they are producing face mask now ?? Once those companies announce their QR with loss again, the share price will drop like F or the companies in deep trouble !
The report suggested only glove-related companies which is peculiar in Malaysia as the only competitors are from within malaysia and thailand comapnies are worth looking into !
Come back to ice cream here, if they are still the biggest manufacturer of hand formers IN THE COUNTRY & PROBABLY IN THE WORLD as reported 10 years ago, then this company could be enjoying the best hefty profit period of their life time !!
Biggest and only listed in bursa, they might enjoy near-monopoly or duo-poly market in hand formers sector ! Almost all rubber glove factories in malaysia & thailand have to order from ice cream for hand formers, because at this glove-demanding urgent time, ALL glove factories in this region (malaysia & thailand) expand their capacity, running hard at their hand formers and surely spoiling more, demand for hand formers will definitely rise ! nobody or few existing readymade factory can mass deliver this special products to glove manufacturer !! They are the hand formers KING, they dictate the price lah !!
I think maybe their next QR won't show huge improvement yet, because of MCO (don't know they allow to run factory during those lock-downed 2 months) ? BUT.... the next next QR is going to be record huge !! ... or news that all glove factories placing huge orders to ice cream !!
facemask & sanitizer has thin or no margin, because too easy for anybody to produce, and tough competition from world factory china ! If you check the retail price of mask & sanitizer for the past 3 months , you know what i mean, once china lifted lock down, the mask & sanitizer retail price dropped drastically. Only day trader can use TA to touch those counters, best to sell before they annouce their QR !!
Rubber gloves only been produced in Malaysia & Thailand, because we have readymade main material rubbers here, zero delivery cost for this material, China wont's do that because they will incur higher cost. thru out the past 20 + years, glove factory have built up their reputation, skills facilities and experience to export to all over the world.
1. come out to talk to press regarding your future plan , invite fund managers to participate 2. use your fat cash of RM20mil to start acquiring those small hand former competitors (fastest way to expand ) 3. transfer listing from ace to main board soonest
If any of this happen, all minority shareholders can really have a good time to lick and suck ice cream goreng liao !!!!
lucky me..was busy with other glove counters...didn't even bother to switch to this counter...or else hanging there till i cry... I told ya....spare part only come later.... good luck guys.
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