Stronger demand due to covid-19 cases spike globally. Even the fully vaccinated people can't prevent the new covid mutation. Vaccine can quite effective to prevent the serious disease but not 100%. This means all vaccinated people should wear the glove, mask, ppe, etc to fully prevent the covid-19 disease.
Singapore vaccination rate is 75% now and most of the vaccines are US pfizer & moderna. 44% fully vaccinated Singaporean are infected by covid-19 against 56% are not fully vaccinated. At least a few years more, we need to live with covid-19 in our daily lives.
If the price of mother share goes up, WB price is not likely to come off. If you have both the mother and WB then you can buy whichever is undervalued and sell whichever is overvalued. If you have both you will be happily busy the whole day!!
Of course nothing is sure here. Sometimes we step on some shit If luck is not with us. Well, that is life. Sometimes you win and sometimes you lose. Try to win more than you lose and you will be alright.
The stock market shows its vicious side towards Comfort today. But at this price, I'm buying. Sure, it might go down further tomorrow and in the coming days.
There's the talk about recovery, competition, reduced ASP etc., especially from investment bank analysts, that make many investors scared. Yes, read their reports and think about their assessments. But we should also do our own research and evaluation and not follow these analysts too much. After all they have been proven wrong time and again.
Regardless of those analysts' reports, in my opinion an investor must have a glove counter or two in his portfolio. In these times of Covid-19, glove companies are in a comfortable financial position. Even with increased competition and reduced ASPs. With Comfort, I feel it's reasonable to target at least a 50% capital gain in the coming months. Doesn't look like it right now but sentiment can quickly change. I'm making this counter a key counter in my investment portfolio based on this speculation.
For a company like Comfort with remarkable performance, selling down of its share from time to time should not be a big issue. I see this as something quite normal. Coming off 6.7% is not a big deal. I don't see this as a " crash". One shld ask who are the buyers of the shares today? It is logical to assume that the buyers are the ones who understand Comfort's business and can see the prospects of the share price coming up again. That is the only reason for the shares to be bought up by those interested parties today.
I strongly believe Comfort Gloves can easily come back to at least RM2.30 to RM2.50 in a not too distant future.
Of course have you diversified a bit by buying some of WB, you would have made some to offset the paper loss on the mother shares.
For a good company like Comfort, the prices of both the mother share and WB should go much higher. The writing is all on the wall.
There will come a time when one of the big buyers who has been collecting at low prices will start to push it up to sell. This comes in cycles, maybe once every 3 months? So those with holding power can afford to sit around and wait for it to happen.
Kossan made another high for QR. Amazing. All the talks of drop in ASP has not affected the NP yet. If large company like kossan can do well. I expect tier 2 glove stocks to do even better , just like previous quarters
The decline in ASPS is not a big issue when there is significant increase in production capacity to cater for bigger volume of sales over the next 2 years. With this scenario, we will continue to see increase in the level of net profits for the next two years in the glove sector. Is this a bad thing?
Comfort Gloves will definitely not disappoint its shareholders like what we have seen over the last 18 months.
Only investors with brains can easily see this. IBs and analysts find it difficult to visualise this. Alamak!!
jun 2020 The boss didnt go for exponential increase in their glove price......... they go gradually by 5-10% for new customer only and will revise every month.......
For the brave investors, getting into Comfort at this level is probably the best opportunity to make the first million RM. I strongly believe it won't be long before investors in general get back their senses and see Comfort in a proper light.
I see this as a window of opportunity which probably comes once in a blue moon. The next one is only likely to be in the next major crisis.
“As we move into the second half of 2021, with the ongoing vaccinations and higher vaccination rates recorded in the developed and developing countries, Covid-19 cases categorised as severe has declined. As demand for gloves eases, the ASP will decline on a gradual basis,” it added.
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!
MQ Trader 289 views | 1 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11474 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main 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....
Invest_888
1,046 posts
Posted by Invest_888 > 2021-07-26 09:27 | Report Abuse
Stronger demand due to covid-19 cases spike globally. Even the fully vaccinated people can't prevent the new covid mutation. Vaccine can quite effective to prevent the serious disease but not 100%. This means all vaccinated people should wear the glove, mask, ppe, etc to fully prevent the covid-19 disease.