Sad but true. If you look at the charts of those so called recovery stocks, most of their share prices are way higher than when they were before the pandemic and their business now or in the foreseeable future are no better than pre-pandemic.
YC.. no bargains out there except for gloves and Serbadk. All recoveries/tech are ridiculously expensive (P/E 50-100 like gloves before). Being a steady LT investors, I am bad at in/out with these hyped up counters. Corrections for these will come as in gloves and I think gloves have the lowest risk now compared to recoveries...given Covid is still here, variances blooming and efficacy dropping. Endamic it is...
Axe… COVID is still around lah… ending not so soon with variances..??. In shares, it’s also looking for potential. U think gloves will stay ranging forever? Ticking bomb… let’s see.
Danny, ya it wouldn't blow this soon. Goverment and businesses are desperate to inject +ve to bring back the recovery sentiment, well, I am too don't want this pandermic to drag too long, many will suffer , be it mentally or financially.
Congrats Danny, our faith in Comfort gave us comfort in this trying time. The sweet taste of glove money is for us to relish once again but don't be greedy.
Beginning it is. Delta variants will overtook the vaccine drive and soon, the demand for gloves will increase as hospitalisation will increase even if death rates stabilise. The war with COVID is not over… that is why US investors buy TG OTC on anticipation that this coming fall seasons will be crap with Delta variants blooming especially with those not vaccinated.
KUALA LUMPUR (June 21): PublicInvest Research has downgraded the rubber glove sector to "neutral" as it expects average selling prices (ASPs) for the sector to decline gradually in the second half of the year (2H21), following the improving Covid-19 situation in both the largest glove consuming markets, the US and the European Union (EU).
Its analyst Chua Siu Li in a note today cut her earnings forecasts for the sector by 10% to 35% on the back of lower ASP assumptions.
According to her, the improving Covid-19 situations in the US and EU resulted in much lesser urgency for distributors to immediately replenish inventories back to usual levels of two to three months.
“The buyers are adopting a more careful stance currently to avoid locking in purchases at high prices.
“We expect ASPs of gloves to start trending lower in the second half, supported by the improved Covid-19 situation as well as lower raw material prices as tight supply of nitrile butadiene latex continues to ease and [with a] better yield for latex concentrate after the end of the wintering season in May,” she said.
She also noted that glove makers’ commitment to stepping up on their social compliance practices will also translate into higher costs going forward, and she reckoned that it would take time for glove makers to fully pass on the cost increase to buyers, so it should result in margin compression in the near term.
Chua downgraded her rating of Kossan Rubber Industries Bhd to "neutral", with a lower target price (TP) of RM3.65.
“We cut our FY21 to FY23 earnings forecasts for Kossan by 37% to 51% to account for the expected decline in ASPs,” she said.
She also maintained her "neutral" call on Top Glove Corp Bhd but lowered her TP to RM4.40.
Truly awesome. Now shareholders are entitled to the bonus warrants and dividend. On top of that, Dato’ Lau Eng Guang Brian Lau Joo Kien voluntarily withdrew from the proposed Allocation of Awards under the ESS scheme, very respectable directors unlike those leeches in the goreng companies.
Tallman, it's because you can see further than those who are short. Some look only at growth rates but not the quantum of earnings yearly for the next foreseeable 3 years and what will be the projected accumulated earnings at the end of the 3 years. There's always a price point worth investing, numbers don't lie but people do. The problem is we can't fight the herd mentality.
Regardless of what some analysts say about reduced ASP in the coming quarters, a glove counter or two is a must in my portfolio. Comfort especially is at a very attractive price based on the latest results.
Sentiment among investors for glove counters isn't favourable right now. But I believe this will change. After all what other industries are making this kind of profit right now?
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yumchar
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Posted by yumchar > 2021-06-17 10:58 | Report Abuse
Sad but true. If you look at the charts of those so called recovery stocks, most of their share prices are way higher than when they were before the pandemic and their business now or in the foreseeable future are no better than pre-pandemic.