Johny...maybe some croc want to push down to collect more....or some insider know something investor dont know...this could be the consolidation phase where some punter who have less faith to panic sell......if the result is good....the counter will go up in long term.....the truth will prevail when qtr result out end of this month...the upside i see is the usd-myr rate break rm 4.02 now....so hopefully some export oriented counter will rally....
We here are praying it to drop so we could collect more. Please drop another 12sen today. It is damn cheap now but I will wait at RM2 since I foresee a lot of panic seller.
WHY NO DROP TODAY!!! Bad counter ma, should ask everybody sell. Please don's say good thing anymore. Say PE High! Sell! Rubber Price Up! Sell! EPF and Major Shareholder Disposing! Sell! Bad QR! Sell! Conclusion, SELL!!!
I want drop not because Karex is not a good company, in contrarily it was one of the best in Bursa. However, we just hope that some 'investor' will panic sell to us so that we can collect more at cheaper price.
I believe the sell calls made on Karex recently were motivated by those who tried to create some confusion linking it to Hartalega's downgrade. Do not b fooled by those opportunistic ppl hoping to buy into Karex cheaply. Though Karex and Hartalega r both in the rubber sector, their products r quite different in nature i.e. condoms and synthetic gloves respectively. Apart from the common setbacks currently besieging other stocks in d rubber sector, Hartalega's downgrade is primarily due to it not securing sufficient orders to mop up d higher production output capacity. Hence, tht necessitated them to slow down production and has affected its growth trajectory moving forward.
But, tis is not the case with Karex. Karex has been pursuing capacity expansion through building additional production lines and acquisitions of Global Protection and TheyFit. The additional production output capacity has already found its potential customers even before the condoms become finished products. And yet, at the current level of production capacity, it is still insufficient to meet growing demands. Karex's growth trajectory still remains very much intact. So, if u sell blindly, u r the ones who w be losing out ultimately. The choice is yours, u decide.
hartalega cant meet the target because of increased latex price and glove having price war. one increase the cost and the other eat the revenue. karex will face the same half of the problem, latex price increase. latex price increased 50% this year. condom is made from latex. karex of course increasing its production output but at the same time profit margin is shrink due to latex price increasing. coming report will also facing rebounded ringgit and increased latex price. you think coming report going to the high pe expectation??
10.5sen profit going to reduce to 9sen. it going to be 15% lesser. previous qr ringgit was about 4.3 and coming qr is about 3.9 so about 10% lesser karex still made profit but just lesser as those factors ate some of her profit margin. so i think highly possible coming qr not going to perform well.
who care about how well she performed in the past. past is past. small time smart, big time not necessarily good. i dont mean karex is bad, i just mean this coming qr will not be as good as previous.
pe is an indicator of expectation of a company, people expecting company be better pe high, people expecting company be worse pe low. company with pe 21 and people expecting coming qr bad or good?? people expecting not so well performed, share price increase or decrease?? simple logic.
im not talking about in 2 years time share price, i say coming qr release period. pe 21 and make lesser profit than previous qr. you expect majority buy or sell?? i invest in a company not fall in love with a company
Ya ya, please sell more. Karex is the worst counter in KLSE. Go see Eforce hundred times better. Past performance does not represent future result, sell to RM2.08 please
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....
Appleby Loh
215 posts
Posted by Appleby Loh > 2016-05-05 07:41 | Report Abuse
Johny Khong. I agree with U!