ASP will definitely drop but won’t have very huge discount like 50%.
For example, good ASP at range of USD 80 to USD 120. Consider a 30% discount from the price become USD 56 to USD 84. Somehow production volume increasing double. Is that able to cover?
During pandemic period, worldwide were shortage of glove, that’s the fact.
If a big giant company like KLK desperate to venture to glove business and existing top 4 also heavily increase their capacity. Meaning that their board are very optimist with the future business.No people will do lost money business.
Not to forget Europe itself have issue for vaccine delivery and few countries (Netherlands, Germany and etc) having lock down. Most importantly, Rubberex have it own trading company at Spain. This will definitely benefit from it since 1st lock down.
aoyoyo...Dr Bottom. There is a vacancy for a doctor position in India, but the doctor must not use the glove.. hahahaha... struggling with my laughing of non-stop
Will drop for first few months but subsequent with the increasing of production volume of it will increase back the earning.
Let start a simple calculation: Production increase from 1B to 2.5B. Total increase of 1.5B. Per month of production = 125m. Selling price at USD 60 (discounted 25% from USD 80) per 1000 pcs. Per month revenue = RM30m
Off course people will say impossible drop so little.. bla bla bla..
Let have the calculations: Per month of production = 125m. Selling price at USD 40 (discounted 50% from USD 80) per 1000 pcs. Per month revenue = RM20m
yes, buy on weaknesses. done deal thousand2x today. I did the analysis and react to it..hahaha. no need for your advice... while here.. free mindset and talking while waiting to go home...ummmhhhh...raining and jammed today
Today, we had another red day for glove counters, after Supermax's quarterly result release.
The closing prices for the big 4 today: Kossan - 4.02(xd), down 3.8% Hartalega - 9.25, down 5.9% Supermax - 4.87, down 12.6% Top Glove - 5.06, down 4.9%
It is not surprising to see the highest % drop for Supermax as it was leading last year's glove rally by its supposedly highest ASP procured.
So far, Kossan's result was the best. Hartalega and Supermax were somewhat disappointments. Next one to watch out for would be Top Glove.
Rubberex, Comfort and Careplus are like 3 musketeers, trading at about the same prices: Rubberex - 1.13 or 2.26(original pre-bonus issue price) Comfort - 2.24 Careplus - 2.23
Not a buy or sell recommendation. Do your own homework.
Maybank Kim Eng posted the analysis till 2024 and cutting down 10% of the total demand and revenue.. did he read the news of India and the increase in global. These analysts are posted when they have the interest.
The awareness of using gloves is higher than before and the usage is across the industries now. e.g. F&B front liners. hahaha...nothing to worry about, will load more3x tomorrow if the price still remains.
different people will not have a similar mindset as you are brian. I was gained my millions with gloves makers when people give all negative and no-smart brain assessment (pity), so KLSE investor's site is a place to talk freely and speak free as everybody wishes to do so..Happy investing and harvesting..Robertz and John1234 are smart investors with analysis...can you come with fact analysis..want to hear from you also.
(Bottom) Doctors no need gloves and hiccup with production. still struggling with non-stop laughing.
@Robertzz: Good morning robert....just asking cause came to my mind, did you check recently at bursa page for any short selling of rubberex? can share here? ( sorry , am running errand can't access to bursa page)
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Lukesharewalker
6,492 posts
Posted by Lukesharewalker > 2021-05-06 11:57 | Report Abuse
Short term it's not going anywhere...sideways at best