Karex is facing a temporary erectile dysfunction due to the stress created by this pandemic. Karex will “re-erect” due to the pent-up demand especially in the sex tourism industry once herd immunity is achieved. Can't see condoms consumption back to the pre-pandemic level anytime soon but the catheters and the new glove business are literally working hand-in-glove to bring in the profits in time to come. The management appears a bit laid-back, so don't expect anything explosive.
I dont think so, I remember Karex used internal funds for their glove venture
The thing is they spent 40 mil just for 2 lines as they dont have the economies of scale soo ye the quick decline in ASP is smtg to look out for perhaps
"At the initial stage, Karex intends to set up two production lines within 12 months from the date of this announcement that is estimated to have a yearly production capacity of up to 500 million gloves (Phase 1) with the remaining production lines to be gradually set up over the course of the next 48 months.
For Phase 1, Karex will require a total estimated capital expenditure of RM40 million which will be funded through a combination of internally generated funds and/or bank borrowings."
SOLD 72% of the Karex that I doggedly averaged down from my first purchase @ 1.24 all the way down to the low 0.40s, from 74c all the way up to 80c this morning.
My average cost + commission is just over 73c =)
Bought back Karex @ 47-47.5c today...recommended 2 clients for the last 2 weeks.
Let's see if this forecasted upswing in demand in 2022 translates to higher revenues and profit over the next two or three quarters.
All the Covid related hurdles such as supply chain restraints and increased shipping costs have been very detrimental to their business model. If they have been able to rectify some of those issues and are also expecting an upswing in demand then there might be some hope for the company to improve its balance sheet throughout the year.
Roe v Wade court decision. US will ban abortion and thus need more condom imports from Malaysia. Obviously this is a bull case for this company since it is one of the biggest producers and has no ESG issues. Overweight on Karex
Seriously, if Roe v Wade goes through in the US Supreme Court, condom demand will skyrocket. No Malaysian investor has discovered this yet. Good opportunity for speculation
Karex is literally the biggest condom producer in the world. Condom sales projected to explode 10x if the court case Roe v Wade is overturned by SCOTUS
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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....
Burdoc
477 posts
Posted by Burdoc > 2021-05-30 09:29 | Report Abuse
Anyone know why making losses i latest qr? Still good future?