Ultimate Stock Tips
Game Over for Gloves?
CynicalCyan
Publish date: Sat, 13 Aug 2022, 10:32 PM
CynicalCyan
0 69
Unique content created once in a blue moon to increase the quality of articles of klse.i3investor.com. (used to be weekly)
It has been a very frustrating, difficult & sad 2 years for gloveholders. (2021-2022)
When you thought the bottom has been reached, and your losses has finally stopped increasing, the support gave way and became a new resistance.
And now, even HARTA thinks that in worst case scenario, the oversupply of gloves might extend until end of 2023.
As most gloveholders would'e suffered massive losses by now, it's a crucial time now.
Perhaps some say nasi sudah menjadi bubur.
Others may suggest throwing in the towel to salvage what's left.
I'm on the view that, just like the MPI of the 2000 tech bubble, one needs to hold & wait long enough until the losses are not so much before selling.
While it's disheartening to see your money disappear in huge amounts in a relatively short span of time, it's far more important to learn & apply the lessons (if any) from this episode.
The truth is, only 1% of the investing community saw the magnitude of the severity of the oversupply issue.
Or perhaps, the analysts actually saw it coming, which was why no glove stocks were in any stockpicks of 2022 in any investment bank analysts' report end of last year.
Well, retailers like us have to be wiser next time.
CONCLUSION:
Malaysia's GDP in Q2 was better than expected at 8.9% growth. Mr. Market should be pleased for the next 2 weeks & stocks should go up until end of Aug. Don't we all hope so?
Brewery stocks should rise more after HEIM's good result. Tourism stocks should improve. More people become employed, get paid & have disposable income for travel. Affordable properties should see continued demand, although some say it's slow.
As for gloves, good times are officially over. Survival is the name of the game now.
Glove share prices may linger at current levels until year end. 20% drop in the past week could be too drastic & a short rebound in sight.
It is not game over for glove companies. They can continue making & selling gloves for next 2 years.
But for retail investors? Can you continue to hold for the next 2 years to sell your stocks at a better price?
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author has interest in stocks mentioned above, i.e. HARTA, HEIM.
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Discussions
Be the first to like this. Showing 12 of 12 comments
It ain't over till the fat lady sings.
Is it truly over when topglov and Harta both kick out from the Bursa KLCI index.
2022-08-15 07:55
Frpm a very brave plantationgameover to Anxious:
plantationgameover Anxious:
I will considering re-entering Harta at RM1.50. By then Top Glove will probably be RM0.50.
At RM1.50, I'd be able to buy twice the amount of shares I had when I exited and that would give me a better chance to recover some of my losses in this counter over the long term.
When all this supply and demand imbalance is over, Harta and Top Glove should still be around.
Its just that in the short/medium term, I think it will continue to drop as long as big players like EPF and other funds continue to sell.
How I wished I had sold earlier and what an expensive lesson it has been for me.
3 hours ago
don't worry, you will soon regret again for thinking that you can time the market.
according to you logic, you can buy much more harta at 50 sens than RM1.50.
so why not wait at 50 sens?
if you look at the price everyday, you will not be a successful investor.
my average price is 4.60 and i have 0 worries no matter how low it goes.
Because i invest with money i dont need and i believe in the management's track records more than EPF. EPF is just a dumb trader that buy high sell low, just see their recent performance for Q1.
If you want fast money, dont invest in market. It's a waste of time and waste of money. better to use the money to enjoy life than to worry so much everyday
22/06/2022 8:21 PM
2022-08-15 08:49
All glove co Bosses r still very rich, much more richer than pre Covid 19
All glove co r still very rich, much more richer than pre Covid 19....Supermx has cash reserves ard Rm3B+ by now (hopefully they abort their expansion plan into US) while both Harta n Kossan has RM2B+, TG only has RM1B+, the lowest among Big 4, thanks for Ah Chai's decision to catch the falling knive as early as 2021
2022-08-15 08:56
With the hefty cash reserves, they can fight with China Glove Co n others in years to come n c who die first
As for all the so called new long term investors (during the last 2 years) in Glove Co, good luck......
2022-08-15 08:58
Harta quarter end 30 jun 2022 report;
Capital commitments approved and contracted for RM 791,965,000.
Cash and cash equivalents : Rm 2,039,293,000
Will Harta employed the cash for investment that generate reasonable income?
2022-08-15 09:22
The fat lady already sang way back! When mass vaccination was implemented, one should have known to cut glove theme!
2022-08-15 20:55
Gloves will go bust n get kicked out of index..
Thank china for that...
Wait n see...
2022-08-15 21:35
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Just hold on to your glove stocks, the glory days will come back. Last time during tech doom, Penta & Dufu were worth 0.20 only, now look at their share price.
2022-08-14 21:47