Posted by Dcmh > 2020-06-02 21:45 | Report Abuse

Get ready to short tmr

Posted by Dcmh > 2020-06-02 21:46 | Report Abuse

Otb so good no need to collect subscription fee lo
Just trade himself and very rich liao

Posted by Dcmh > 2020-06-02 21:48 | Report Abuse

Kyy kaput in jaks and dayang and soon this

Posted by Dcmh > 2020-06-02 21:49 | Report Abuse

He is selling tmr

Posted by jennychin > 2020-06-02 21:52 | Report Abuse

KYY may jump over to Careplus and HLT as these 2 glove counters still not much uptrend compare to the Big 6 kena margin call.

Posted by lawrgan > 2020-06-02 21:53 | Report Abuse

Designated stock very likely to be imposed

Posted by tallman > 2020-06-02 22:03 | Report Abuse

IBs are set up a trap to trap people. Maybe others IBs will follow

Posted by Apple1234 > 2020-06-02 22:07 | Report Abuse

Hope guys tmr big throw glove share, please. I waiting the chance already very long time, please. Throw the share tmr.

Posted by vanness_lyh > 2020-06-02 22:13 | Report Abuse

Will tomorrow hit 4?

Posted by Apple1234 > 2020-06-02 22:13 | Report Abuse

Comfort margin cap for maybank before below RM2, but now is RM2.29,wow.

Posted by Endgame > 2020-06-02 22:26 | Report Abuse

Tmr Green Green! Buy morning sell market before close... Easy like abc

Posted by ImFromTheFuture > 2020-06-02 22:31 | Report Abuse

market already reacted to margin caps today, panic selling aleady took place. tomorrow continue steady up to OTB's tp

Posted by tallman > 2020-06-02 22:34 | Report Abuse

Maybank has capped the share margin valuation for Hartalega at RM8.97, Top Glove at RM9.41, Kossan at RM7.87, Supermax at RM3.38 and Comfort Gloves at RM2.29.

RHB, meanwhile, is capping the financing limit to a 35% discount on the latest market closing price of Hartalega (or at a 35% discount on RM8.15, whichever is lower), Top Glove (or on RM8.64), Kossan (or on RM5.65), Supermax (or on RM5), Rubberex (or on RM2.31), and Comfort Gloves (or on RM2.35).

Posted by WooFuVeeVeeVee > 2020-06-02 22:39 | Report Abuse

Rocket!!!

Posted by michaelwong > 2020-06-02 22:42 | Report Abuse

By obvious reasons the sell down will continued shortly . Why ? As seen of late many who bought on contra basis is simply bcos most of gloves stocks counters are rising rapidly with no price retreatment . Even when price slightly retreated , the strong follow up support will pushed up the price of gloves stocks counters across the board to positive territories and hence many who bought on contra still makes wonderful short term profits , however with the sudden dips in the opening market have inadvertently caught many buying on contra with no room to escape either to sell at early limited losses of further losses . This may however in the coming days to see further price depressed or force to sell without holding power shortly , likewise those who have holding power might joined in the fray to sell and buy back at cheaper price as per according to individuals strategy and opinions .

Lastly , our hopes remained positively with confidence that gloves stock counters will rebounded shortly given the reasons that demands exceed supply globally with ASP and added increased in margin profits in the coming qr results .

The cap in certain glove stocks margin financing with certain IB investment house to 35% or RM 1 with lower target price does not translate or views with fears due to risks exposure and continuous spike in gloves stocks counters .

Posted by Investor_2020 > 2020-06-02 22:43 | Report Abuse

Tomorrow expected rebound or gap down? i am worried already, need to protect my capital. Please help sifus

Posted by wilson55 > 2020-06-02 22:46 | Report Abuse

Maybank is actually increase share margin valuation from 1.15 to 2.29 today. Before this margin valuation only something like 1.15

Posted by abang_misai > 2020-06-02 22:47 | Report Abuse

I think it will drop all the way back to RM1.00 due to "vicious cycles" of I unload to you today, you unload yours to him the next day, he unloads his to her the next next day, and so on.

Posted by Fong Kh > 2020-06-02 22:53 | Report Abuse

Haha no chance

Posted by abcb > 2020-06-02 22:54 | Report Abuse

All glove counters will limit down tomorrow and all banks and brokerage firms reduce all margin value for all glove counters and CPNMFORT value 1.20 only

Posted by anthonywml82 > 2020-06-02 22:56 | Report Abuse

Tomorrow green. Bank increase margin cap. Pity those panic sell

Posted by nicnic > 2020-06-02 23:02 | Report Abuse

in temporary 3 days, it will continue drop to RM2.80++ this level

Posted by Wilt66 > 2020-06-02 23:04 | Report Abuse

Counter capping means putting a cap on the market value of a stock for the purpose of valuing the stock concern for a loan/margin financing purposes.

For example, lately there is a RM5.00 cap on Supermx whereas today’s market value is RM7.61. If you pledge 1K shares of Supermx to the capper for margin financing, the value given is 1K x 5.00 = RM5,000 but when you compare to market value is 1K x 7.61 = RM7,610. The amount of loan you can get is RM5K only.

Posted by Wilt66 > 2020-06-02 23:04 | Report Abuse

This is what happened today with the margin call

Posted by Invicibletrader > 2020-06-02 23:07 | Report Abuse

Donald Trump today, "Vaccines are coming along really well. Likewise therapeutics. Moving faster than anticipated. Good news ahead (in many ways)!"

Posted by Huat huat 2020 > 2020-06-02 23:09 | Report Abuse

I am not sure why so many focus in this company. Dont you see how directors are disposing in large amount cashing out ?

All those glove holders will soon move their fund to RGT(9954),

Because it is a company with Innovations, products in demand such as Sanitizer dispenser , Net cash & Zero Debt , manufacuter of medical device under clean room

RTO to be happened 100% and BOD with proven track record of great leadership and management

Next potential limit up counter

Posted by jolow > 2020-06-02 23:27 | Report Abuse

pe 60x cannot sustain. Anytime burst.

Posted by projectwisdom > 2020-06-02 23:30 | Report Abuse

yu mee.. how sure are you they haven't put one foot out the door.

Seriously dangerous counter here...

Posted by abcb > 2020-06-02 23:34 | Report Abuse

Uncle Koon has already disposed all his glove counters stock before the haircuts start from tomorrow

Posted by Stocks888 > 2020-06-02 23:37 | Report Abuse

Hold Tight And Wait. You will earn more. Stay Safe and Take Care.

Posted by Grova1 > 2020-06-02 23:41 | Report Abuse

I'm not sure if my understanding of the situation is correct or wrong.

1. Let's say a man whose name is Watson buys Comfort shares with margin and with his comfort shares as the collateral at a previously higher haircut rate provided by the bank.

2. Today, the investment banks, maybe were alarmed by the high PER, suddenly reduced the haircut rate of Comfort shares.

3. The banks' action directly reduces the amount of Watson's collateral and he has to sell some Comfort shares so that he can meet the collateral requirement of the bank.

4. Unfortunate, there are many big players who buy Comfort shares with margin and they have to do the same thing. That's why the share price dropped.

5. The sudden decrease of Comfort share price in turn causes panic sell among some uninformed shareholders.

6. However, the decrease of the haircut rate does not mean that the fundamentals of Comfort or the situation about the pandemic has changed. The demand for gloves still exceeds supply.

7. And those bought Comfort shares with margin were merely forced to sell to meet the banks' collateral requirement.

8. So the price drop might end once their collateral requirement is met.

May I know is my understanding of this situation correct?

Posted by Croxxx > 2020-06-02 23:45 | Report Abuse

@Grova1

Any time frame for what you have pointed out?

Posted by Grova1 > 2020-06-02 23:52 | Report Abuse

@Croxxx

I mean the reduction of haircut rate by the banks circulating on the internet today. The news seems to dampen all the glove stock prices.

Posted by Max2838 > 2020-06-03 00:12 | Report Abuse

The glove business & earnings have not changed.
Brokerage house just want to sanitise & clean house of the in-out and margin players.
If you want to be in the game, please put cash up front

Posted by NewbiesJC > 2020-06-03 00:14 | Report Abuse

IB themselves give high TP to glove stocks. At the same time cap margin. What does it mean?

Posted by Max2838 > 2020-06-03 00:20 | Report Abuse

Big Boys already know the effect of Covid on glove earnings for next 6 qtrs.
Go n check TopGlove EPS in 2009-2010 (Swine Flu) when it was 21 sen/shr per qtr compared to latest past 6 qtrs of 2019 of just 4 sen/shr per qtr.

Wakarimasu ka?

Posted by Grova1 > 2020-06-03 00:24 | Report Abuse

From what I read online, the purpose of the reduction of haircut rate by the banks is to reduce the banks' exposure to glove counters. The only impact is that the share buyers, who want to use margin finance to buy shares of glove companies, need to use more of their own money rather than the bank's money. It does not mean that Comfort should be valued at RM 2.29 (valuation by Maybank) and RM 2.35 (valuation by RHB) because the fundamentals of the company and the industry prospect has not been changed.

If we look at the industry prospect,
1. The vaccine still takes a long time to be developed, manufactured, and distributed.
2. Many countries have started to open up and that sadly, but surely increase the case number.
3. The norm will be changed after this pandemic. Glove consumption and mask consumption will increase as their usage will become a norm in future, or at least the near future.
4. Many businesses declare bankruptcy in this MCO. In other words, unemployment rate will increase and the purchasing power will be weakened. The prospect of many industries will be negatively affected in the near future. So, the only industry which can generate promising prospect in the near future is glove industry. That's why I think it is best to put money here.

I'm sorry I am new to stock market. May I know is my interpretation correct?

Posted by Max2838 > 2020-06-03 00:38 | Report Abuse

KYY assumed that the selling price of Nitrile glove at USD 3 cents per pc or RM 0.126
Total revenue of Nitrile gloves only for Comfort = 5.14 billion*RM 0.126 = 647.64 million ....

The selling price is underestimated or priced at ex-factory.
If you were to check Amazon.com, the retail price per box of nitrile gloves is about USD $33 for 200 pcs or US 17 cents per pc. Such markup needs a correction by glove manufacturers or better still improve its supply chains.

Posted by stncws > 2020-06-03 00:46 | Report Abuse

do not says vaccine take long time tp come out. It could be anytme!

Posted by Grova1 > 2020-06-03 00:46 | Report Abuse

It seems that investment banks are trying to do something to reduce to share price so that they can collect more from the market. And one thing is that whenever the share hits a new high, there will definitely some news come out to dampen the price.

Posted by Apple1234 > 2020-06-03 00:53 | Report Abuse

Stncws: if you have friend work at government hospitals, you can go ask them. Why HIV, Denggi, Sars, H1N1 until now havent got vaccine? You answer me?

Posted by Grova1 > 2020-06-03 00:57 | Report Abuse

@stncws, even if the vaccine comes out tomorrow, considering the usual lengthy timeline for vaccine development, is it gonna be reliable? and what about the amount of time needed to manufacture and distribute to the whole world? We are talking about the population of the whole world here. Gloves and masks will have huge demand in the meantime.

Posted by Apple1234 > 2020-06-03 00:59 | Report Abuse

You can see comfort every day volume also around 80-100 million, think about it who have so huge of money buy it? Investment bank or big funds? What the purpose of RHB bank downgrade the buy comment? Big shark keep split the bad news, repeat doing same things, so you all already learn clever? First casse is split about FDA problem, second casses is talk about margin cap problem, third cases is downgraded the buy comment to neutral. Big shark repeat doing the same things, guys, wake up. Be a smart and clever investor.

Posted by Apple1234 > 2020-06-03 01:02 | Report Abuse

@stncws: can you answer me now our technology so advanced, why HIV, denggi, sars, denggi all still cant find the vaccine? Even cancer also cant find the medicine cure it? Is it the virus keep changing? Than covid-19 can find the vaccine in this years?

Posted by Waikit2224 > 2020-06-03 01:19 | Report Abuse

Yestersay participation retail only 2.88M but financial institution 188M. That's d effect of hair cut from financial institution

Posted by Grova1 > 2020-06-03 01:27 | Report Abuse

@Waikit2224 your comment sheds light on another perspective.

Posted by michaelwong > 2020-06-03 02:10 | Report Abuse

Grova 1 , l shared the same sentiments and opinions exactly for what you have stated. That's how and conveniently with vested interests by investment house at their expense with authorities to suppress share prices at their whims and fancied to collect cheaply to maximize their ill gotten profits .

Posted by mf > 2020-06-03 02:25 | Report Abuse

DATO' LAU ENG GUANG (a substantial shareholder) disposed 165,000 shares on 01-Jun-2020.

Posted by johnbrooks > 2020-06-03 05:04 | Report Abuse

The price cap will affect the Financing Margin Ratio (FMR) calculation. For maybank, you need to maintain the FMR at below 60% or 0.6. If its exceed that amount u will need to reduce it back by either topping up more cash or sell the shares.

In general with maybank if u put rm100k FD in the bank, u are given a maximum trading limit of rm250k.

FMR =(Purchase outstanding - Fd value)/ share value

Example: u recently put rm100k in fd and decided to max out ur trading limit by buying rm250k worth of comfort shares at yesterday closing price. At the end of the day ur FMR are as below

Fmr =(250k - 100k)/ 250k = 0.6 which is the maximum limit that maybank gives u.

But now maybank decided to cap the price of comfort to 2.29 instead of the closing 3.75. This will affect ur "share value" which now is worth only (2.29/3.75)x250k =152.7k

So ur FMR is now = (250k -100k)/152.7k = 0.98 which is way above ur limit.

U will received a margin call by maybank to either top up or sell ur shares (rm250k will get u 66,667 shares of comfort @3.75).

Assuming today the share price does not move and will close at 3.75 again. U need to top up in order for the fmr to go back down to 0.6. When you top up your outstanding balance will go down. In order to bring the FMR down to 0.6, u need to clear at least rm58.4k of ur outstanding balance.

FMR = (250k -58.4k -100k )/152.7k = 0.6.

Another way is to sell ur shares. Based on this case rm250k will get u 66,667 shares of comfort at rm3.75 per share. In order to bring back the FMR to 0.6 assuming the share price did not change, u will need to sell a total of 24,579 shares at rm3.75. Or 37% of ur total shares.

FMR =(rm157.8k -rm100k)/ rm96.4k = 0.6

Notice that the denominator which is the share value also went down. In this example it is equal to the number of remaining shares multiply by the margin cap value

=(66,667 -24,579 ) x rm2.29 = rm96.4k


Hope thats clear. Good luck.

Posted by TM##Stock > 2020-06-03 05:33 | Report Abuse

https://www.sinchew.com.my/content/content_2282331.html