For warrant holders, there is no need to talk about converting to mother...Anytime u convert, u need to pay rm2.30,regardless of what the mother price is... There is only 1 advantage of the mother over the warrant....mother gets dividends....
Share price won't increase so soon as more people lose their jobs, where got money to buy shares? Just let the share increase its value (not share price) and collect dividend. Don't concern too much now, the price will increase naturally one day.
If i remember correctly the synficate moves the share price quite significantly every 2-3 months. So if you carefully trade in this counter, you shld make some money every quarter.
But you need some little skills in buying low and selling high which is not found in everybody. Nevertheless, practice makes perfect.
@anzo888 @Shines, i've been told that having both warrants and mother will have higher exposure to the stock, where upon good news warrant can at a faster rate. of course the opposite is true too.
I'm inclined to sell warrant to buy mother too. just not sure if its the right move. What's the benefit for comfort to even issue warrant in the first place?
Gloves shortage expected due to gloves factories in Selangor shut down while Comfort gloves factory in Perak 80% operating. Comfort surely has the advantage over the rest. Monday see how.
The sales for the next 3 quarters are based on those that Comfort clinched last year with high ASPs. So we can expect the profits for the next 3 quarters to be at least as good as the last quarter ( which was record-breaking), if not better. This will have positive impact on the price of Comfort shares.
After the 1st quarter of next year, the ASP will come off but because of the new Covid variants, the ASPs will not "fall off the cliff". The ASPs will gradually slide downwards. With the expansion of capacity, and with higher sales volume, the impact of the sliding prices is likely to be cushioned by higher orders which will still bring about higher level of profits.
No factories would want to increase their production capacity ( and incurring huge capital expenditure) if the operators cannot foresee earning higher level of profits.
In any businesses, product ASPs can come off when there are more players. That is normal. It is up to the individual factory to be more efficient and creative in product design to ward off competition.
It seems many of the research analysts are so easily taken away by the dropping ASPs that they make no effort to look at the bigger picture. Or there is herd mentality among them.
ASPs is only one thing, increasing level of profits is a much more important factor to look at.
All businessmen will tell you the same thing: they all strive to increase the profit level in their companies.
I am investing in comfort, because of the cash they have and generate. They can easily get into manufacturing other things. I am here to stay long-term
The market consensus is that Comfort's fair value is about RM3.50. With that mother price, then the WB may go up to as high as RM1.50 each. We are all going to get excited again soon with Comfort. Haha!
With political uncertainty and EMCO, any price rally tends to be short-lived in nature. Not only glove counters, recovery plays like steel counters have pulled back at least 35% generally from the high this year.
Mkt is full of cheap bargains these days. Be it steel, technology, glove or otherwise. Bargain-hunters can afford to take time to pick and choose what to buy for the next mkt upswing.
just weird when you hv cash rich and profit company but keeps dropping terribly, comparing with loss making company that doesnt even drop the price. weird stock market now, hopefully idss measures in the future can balance this.
Looking at the price movements today i can safely say that the sellers are basically the weak holders as the decline was gradual. Who are the likely buyers? The major shareholders/ directors/treasury fund. No short-sellers are at work.
These buyers also trade for themselves so they will off-load at higher prices once they are done with the buying.
Don't panic. The prices will definitely recover in due course.
Looks like Comfort share price is turning and coming up. Good idea to switch from mother share to WB. When the market turns, the warrants ( in fact for all warrants) the return ( in % terms) is much higher than that of the mother share.
I have just swapped a portion of the mother shares i have for WB.
A company-issued warrant is usually a bullish bet on the underlying mother share. In a bull mkt, it can do extremely well. But in a bear market, it can fare very badly.
Even though the warrant is expiring in about 5 years' time, the warrant price will start to factor in more of the time decay of the warrant at least 1 year earlier.
So, it can be a risky bet for the newbies, not knowing the implications involved.
John1234 What do you expect the company can do another 5 years. From PN17 in 2013 can become cash rich company. Weird thing is the company is late in the game of giving bonus.
Afif95, sorry, I do not have a crystal ball. Things are evolving so fast that it is almost impossible to predict what is going to happen 5 years later.
Gloves factories still not allowed to operate in Selangor and the big4 are located there. As Comfort still riding on the big4 gloves makers it can't be expected Comfort price will surge anytime soon. Only upon release of the 2nd quarter report of Carepls around early August we can expect the uptrend of Comfort. Just my guess.
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Posted by BrusaCasino > 2021-07-09 14:54 | Report Abuse
Comfort will sooner no longer be a second tier glove stock