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Supermax price plunging is so ridiculous - Koon Yew Yin

Koon Yew Yin
Publish date: Tue, 05 Jan 2021, 09:11 AM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin
Following Message

Supermax started dropping on 20th October 2020 when its share price was Rm 10.36 to close at Rm 5.51 today.

It dropped Rm 4.85 or 47% in the last 3.5 months. This massive drop is so ridiculous when the number of new Covid 19 cases is still increasing daily. As a result, the demand for medical gloves is surging.

Currently, US has a 21.11 million Covid 19 cases and 360,028 deaths. US has the most cases in the world.  

 

The table below shows the target prices of so many Investment Banks. They all cannot be so wrong.  

All medical staff have to wear gloves to do testing and vaccine injections as shown on the above photos. In fact, additional gloves are required for vaccination and testing for coronavirus.

Supermax reported 1st quarter ending Sept EPS 30.58 sen. Its previous was 15.29 sen. Its profit jumped by 100% because it could easily increase its selling price  due the surge in demand for gloves. Based on this fact, its 2nd quarter result should be another record high profit. The company should make the announcement in mid-January.

Even if the company cannot increase its selling price its annual profit will be 4 X 30.58 = Rm 1.22. Based on PE10 it should be Rm 12.20 per share. Based on PE 15 it should be Rm 18.30 per share.     

 

SUPERMX (7106)
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Discussions
Be the first to like this. Showing 12 of 12 comments

1lotman

yes. so ridiculous.. only u r right all the time...

2021-01-05 19:12

michaelwong

Don't be too optimistic that the price is going to rise further . A technical rebound usually occurs when the stock is in an oversold position . Just pray for reversal after a long hauled downturn pinned down by the emergence of vaccines into the global market that could put a halt to the spread of Covid19 pandemic diseases

2021-01-05 19:21

kelvin61

Looks like a bear trap. The glove stocks are in downtrend mode. Never catch a falling knife regardless of how good earnings are in the short term. It won't last as their ASPs were mediocre before the pandemic. It will retrace once the vaccine is distributed and given within the next 12 months. Gullible traders got carried away thinking the party will last forever.

2021-01-05 22:06

ahbah

He who laughs last laughs the best.

Just see who laughs last ?

2021-01-05 22:50

tamp0i

The more blogs you wrote, the more plunges it took... Stop please and be silent, watch from sidelines

2021-01-05 23:17

sensonic

I WILL BUY MORE IF IT DROP FURTHER.

2021-01-05 23:32

patrico8

New grounds, so quite ridiculous fall.

2021-01-05 23:42

sense maker

Yy’s articles repeat the same points endlessly and ridiculously. A rich man is behaving like a pathetic desperado.

2021-01-06 05:11

ITreeinvestor

https://www.voanews.com/covid-19-pandemic/mexico-grants-emergency-approval-astrazeneca-oxford-coronavirus-vaccine

No glove wearing during vaccine injection.

2021-01-06 07:13

ITreeinvestor

https://www.chroniclelive.co.uk/news/north-east-news/first-north-east-nhs-staff-19567342

2021-01-06 07:15

Pinky

From "illogical" to "ridiculous"

That's how low this old man has become.

2021-01-07 09:32

Zuliana

Will own nothing, and Will be happy.
Remember This.

2021-01-07 12:42

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