Haha, somebody says a red candle is coming, better watch out. But technical chartists have yet to classify what "a red candle" is.
By the way, he gave a sell call, the moment the last quarterly report was out on 24/03/2020. This was probably when the price of this counter was near its lowest, at 61 sen. He might mean well, but his unsound advice might have caused some poor chaps to sell their shares at a dirt cheap price.
Of course, this counter has been up for 3 consecutive days today, after price and vol have spiked up already. Nobody can be 100% sure how much higher the banker will continue to play this counter and for how long, given the current mkt conditions.
Do your own analysis. Buy and sell at own risks.
------------------------------------------------------------------------------ Stock: [COMFORT]: COMFORT GLOVES BHD Mar 26, 2020 9:39 AM | Report Abuse red candle coming
mrlimitdown extend movement restriction until 14-4 die-loh comfort. Sales volume down, cost high, profit very down, 25/03/2020 9:03 PM
mrlimitdown cheap is not good. sell worst yet to come die movement restriction 24/03/2020 9:03 AM
But I sell d la earn sikit sikit to cover lunch money, wait until market stable first, but I know comfort will always give comfort in the long run. KEEP BULL MY FELLOW FRIENDS!
glove manufacturer has many foreign workers. if allow to operate 100%, govt worried msia cases of infected will be high. Sure they won;t allow 100%. Govt have to protect our own country first. They don't care other country affected.
the movement restriction cause many problem to manufacturer. involve a lot of downtime cost. Have to buy sanitizer , facemask for workers, control here, control there... all this things involve cost.....
Comfort Gloves - A Just in Time Expansion; Reiterate BUY Author: rhboskres | Publish date: Tue, 24 Mar 2020, 5:18 PM
Maintain BUY and MYR1.08 TP, 80% expected total return, on FY21F P/E of 18x – lower than peers’ 27x 1-year forward average P/E. FY20 (Jan) earnings were within expectations. The COVID-19 pandemic has led to a global surge in demand for gloves. We think Comfort Gloves is on the right track to catch the wave given its timely commencement of new lines, ongoing research and development and capacity expansion to fulfil rising demand. We expect a busy year ahead for the gloves manufacturer.
A good close to the year. Comfort Gloves’ FY20 earnings of MYR33.2m were within expectations, at 104% of our full-year estimates. Net profit jumped 19% YoY, on the back of higher revenue (+8% YoY) and better productivity. QoQ, net profit margin chalked up to 7.4%, from 5.5% in 3QFY20, mainly due to disciplined cost rationalisation and better product mix. We believe this could also have been contributed by lower raw materials costs. Lower net gearing position. As at 4QFY20, net gearing reduced from 0.24x to 0.16x, given pared down borrowings and higher cash piles. Assuming the majority of the cash is to be ploughed back to support business expansion, we expect FY21F DPS of 2 sen (3% yield), slightly higher than FY19’s 1.5 sen.
No change to FY21F earnings. Meanwhile, we introduce FY23F earnings at MYR46m. Six new lines commenced in 1QFY21. The six new lines commenced operation in Feb 2020. This, alongside the existing 49 production lines in the two plants in Simpang and Matang, Taiping, are running at close to full capacity, which collectively can produce between 430-450m pieces of gloves/month. In our view, the commencement of the new lines was timely as it helps to cater for both existing demand as well as the global surge in demand – arising from the unexpected outbreak of the COVID-19 pandemic. Beyond current expansion, we believe more capacity may be added in the future, as the company had acquired about 39 acres of land in Perak in 2018 that can potentially house more capacity ahead. As demand for nitrile and specialty gloves increase, the potential capacity expansion could help to capture more market share moving forward, in our view, given its niche in the premium specialty gloves segment.
Risks to our call are higher-than-expected increases in raw material prices, and heightened competition among the rubber glove players. Source: RHB Securities Research - 24 Mar 2020
PublicInvest Research Headlines - 24 Mar 2020 Author: PublicInvest | Publish date: Tue, 24 Mar 2020, 9:14 AM
Comfort Gloves: FY20 net profit higher at RM33.18m . Comfort Gloves posted a firmer set of results for the financial year ended Jan 31,2020 at RM33.18m, up 19% from the RM27.89m a year ago underpinned by stronger revenue growth. The specialty glove manufacturer said its revenue rose by 8% to RM510.74m from RM474.03m a year ago. Comfort Gloves said its emphasis on natural and synthetic premium speciality gloves will continue to provide it opportunities for growth and improvement. On the prospects for the rubber glove manufacturing sector, Comfort Glove said it remained strong with increasing demand arising from switching trends towards nitrile glove. (Starbiz)
"..... On the prospects for the rubber glove manufacturing sector, Comfort Glove said it remained strong with increasing demand arising from switching trends towards nitrile glove...."
This is my thought about this stock. Let me know your thoughts once you have read it and if there is anything that I have missed in analysing this stock.
Suppose to bull run last month technically but did no materialize due to Covid 19, now is the good chance to buy cheap. The demand for gloves was tremendous . Actually Covid 19 is a blessing for glove companys .The cheapest among the Top 5 gloves companys I can find
As mentioned by many incl KYY, comfort has the lowest P/E of 15 compared to the rest of the glove counters...alot of upside for comfort since all glove factories are experiencing huge backlogged orders.
Malaysia has relaxed rules on rubber glove makers, allowing them to return to full-staff strength, with conditions, to meet urgent global demand in the wake of the Covid-19 pandemic.
The six new lines commenced operation in Feb 2020. This, alongside the existing 49 production lines in the two plants in Simpang and Matang, Taiping, are running at close to full capacity, which collectively can produce between 430-450m pieces of gloves/month. In our view, the commencement of the new lines was timely as it helps to cater for both existing demand as well as the global surge in demand – arising from the unexpected outbreak of the COVID-19 pandemic. Beyond current expansion, we believe more capacity may be added in the future, as the company had acquired about 39 acres of land in Perak in 2018 that can potentially house more capacity ahead. As demand for nitrile and specialty gloves increase, the potential capacity expansion could help to capture more market share moving forward, in our view, given its niche in the premium specialty gloves segment.
Don't worry, glove and mask will be the event theme this year...though index may be masuk longkang.....huuhuhuhu...backlog order also sulah sampai hujung tahun....
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
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....
Icon8888
18,658 posts
Posted by Icon8888 > 2020-03-26 11:47 | Report Abuse
buy now before miss the boat