@Anxious nobody can predict the stock market, but the consensus seems to be that the gloves industry isn't doing too well in the short run. From February to late April, I have been slowly cut my losses by reducing my holdings from 30% to 15% and investing in other industries. Right now gloves is only a little over 10% of my portfolio, because other stocks in my portfolio are doing well, while gloves continue to trend downwards. I kept the remaining 10% (or 15%) in the freezer, and consider adding some if it falls below the RM4 threshold.
I am not in the position to dole out financial advise, but if your portfolio is keeping you up at night, consider taking professional financial advice on adjusting your overall portfolio. Beware of random advises from here, Whatsapp, Facebook and Youtube. Selling Harta was painful for me, realising 35-40% losses during in the process, but my losses were smaller since my other stocks were doing quite well.
Harta indeed has very good fundamental but the whole story for glove industry already change since pandemic and u must chg your mindset 360 degrees also! From rm 4 to 2.xx then it will be too late to cut loss !
Glove is recession proof. Glove still needed in hospital. Just that those solely making examination glove do not have competitive advantages. Small player will be consolidated. Eventually those survive through will continue to sail. Now just have to wait for their price come down to the bottom then enter.
Not sure on their management capability, but did observe in one of the Margma Rubber Glove Conference on how the Sr Kuan lecturing his entire sales team, which is a really serious session.
Harta share price 1st time drops below RM4 and continues downtrend as glove ASP still declining and increasing production cost coming few quarters....Current PE valuation still high as EPS coming few quarters continues to decline to around 2-3sen
The share price is dropping because people speculate the ASP to drop further due to oversupply from China and other glove factory that mushrooming during covid era. Another reasons is labour shortage as well as increase raw material cost due to rising of energy cost worldwide together with tariff's exemption for China medical goods. Inflation worldwide especially will drive user to switch to lower pricing goods and further squeeze the margin. Oversea inflation was crazy, just Malaysia is much lower due to government subsidy fuel but we do impacted due to transport and cost from oversea raw material is increasing due to rising in energy cost
Examination glove is a commodity product. No Speacialty. Production profitability rely on mass volume. Who can produce with cheaper cost and equal quality will win the battle.
Developer also trying to make glove, which is unwise direction. Currently supply over demand. Answer for ASP drop is there. Not speculation. Thank you.
Developer hate Glove maker earning 5 billion for 2 years....They red eyes.... Developer mostly are opportunist....now developer come can destroy the fundamental of gloves ... The big 4 must defense
The new comer must be in terrible situation as atleast the big 4 earn big bucks already, now is just business as usual same like before pre covid time.....
Most likely is business as usual, similar to the one before the pandemic. I will hold as long as Harta can remain competitive above the others. But if Harta is no longer competitive, or when the glove industry is not longer a growing industry (in terms of growth, gloves used to be second to tech) then bye-bye glove industry, it's nice knowing you.
ken2004: why not use ur brain to think? I short , then buy back then use other account short then buy back? only one account meh?? ahahaha first day in stock market ar? aiyooo...... even normal retailer also got few account la.
KUALA LUMPUR (June 3): Top Glove Corp Bhd's market capitalisation slipped below RM10 billion on Friday (June 3), as its share price extended losses to settle down two sen or 1.59% at RM1.24.
Question: When will Harta's market capitalisation to also slip below RM 10 billion?
seriously, u know what is shorting or not lol, it is about you borrow shares to sell to people then in another way, you need to return back what you sell out in later stage, it is not about how many accounts you have......
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....
YourQuirkyWays29
761 posts
Posted by YourQuirkyWays29 > 2022-05-31 14:57 | Report Abuse
LOL Cerubic, hilarious but spot on. We just hodl.