Koon Yew Yin's Blog
Supermax: My last sermon - Koon Yew Yin
Koon Yew Yin
Publish date: Sun, 28 Feb 2021, 06:14 PM
Koon Yew Yin
0 1,453
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Both the Christian and Islamic faith have the last sermon on the Mount. I am not writing about religion. I writing my last sermon on Supermax.
I have written more than 10 articles on Supermax. As a result, many of my readers would have bought and sold to make a lot of money. But if they did not sell earlier, depending on their average purchase price, they may be losing money on paper because it has been dropping from Rm 10.70 on 19 Oct to close at Rm 4.84. It has dropped more than 50% in the last 4 months as show on the chart above.
The losers must be cursing me for apparently misleading them. I want to reassure them that I wrote my articles with good and honest intention. I have no reason to ask them to buy to support the share price because the daily volume traded is tens of million shares and whether they buy or sell would not make much difference to the share price.
As a co-founder of Rubberex, I was told that the demand for glove is still surging due to Covid 19 pandemic despite massive vaccination. Moreover, many more medical workers are wearing glove to do the injection for safety. Additional gloves are required.
In fact, Professor Peter Piot of London Medical College said that at least 70% of the population in the world must be vaccinated to prevent the spread of the coronavirus. It will take a long time to produce enough of Vaccine to vaccinate 70% of the world population of 7.6 billion people. Currently only the rich nations can afford to buy vaccine to vaccinate their citizens. Unfortunately, there are many more poor nations who cannot afford to buy the vaccine.
Professor Peter Piot and many scientists predicted the Covid 19 pandemic will continue for another 4 or 5 years. Based on this fact, the demand for gloves should continue to surge for a long time and all glove makers can easily increase their selling prices to make more and more profit which should be reflected on their share prices.
This morning, I spoke to Mr Ken Cheang, CEO of Comfort Gloves to ask him if he could sell some gloves to an old friend who is a trader. He said that all his production is already presold for the whole year. If my friend wants to place an order, he can only supply in 2022 but he cannot fix the selling price now as the selling price is increasing constantly due to the surge in demand for gloves.
For no logical reason, all the glove stocks have been dropping in the last 4 months while the companies are making more and more profit. It is so ridiculous and defies investment logic.
Supermax first quarter ending Sept EPS 30.58 sen and 2nd quarter ending Dec 41.14 sen, totalling 71.72 sen for half year. Assuming each of the 3rd and 4th quarter EPS is 40.14 sen, its annual EPS will be Rm 1.54 per share.
Based on PE 10, my target price is Rm 15.40 which is easily achievable.
Supermax cannot continue to drop for whatever reason. Sooner or later, it must rebound. It will shoot up very rapidly to reach my target price.
My last advice is to get ready to buy back at cheaper prices. Even if you buy at current price level, you should not be afraid because the down side risk is minimum.
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Discussions
1 person likes this. Showing 50 of 132 comments
I believe kyy. He is the master of ancient investors. Heng ong huat arh!!
2021-03-01 21:28
More margin calls are expected tomorrow with no support coming. On course to break below RM4 this week. In fact, brokerage houses giving buy calls could be trying to sell off their stockist position to minimise their loss. Geezer as predicted will get caught again due to his GREEDY track record. Be cautious not to overstay in stocks promoted by Geezer to avoid losing your pants. He thinks he's smart but do not know when to call it quits before it's too late.
2021-03-01 22:07
uwc,greatech,D&O or mr diy no margin call? so low profit,price can be so high? apa bursa ini?
2021-03-01 22:10
Since it's last sermon on Supermax, it also can be interpreted as he is selling off all his stake n give up totally or banks are force selling all his margin shares . This is last sermon , that mean he will not come out any further articles or sermon on Supermax ! If you got no more Supermax shares, of course you are not bother to give sermon again !!! Base on his many previous articles which encourage ppl to use margin to buy more, also one article said he had sold all Supermax, later said he decided to put all his money in from 8 to 9 runner ! IF what he said in all his sermon are truth , you can concluded that HE has lost all his CASH (80 to 100 million) in Supermax !!!! Crazy old man, I really don't understand do his brain still functioning normally !!!
2021-03-01 22:25
I really hope he just stfu and retire without talking nonsense. leave some legacy to your son or grandson. what left behind is shame and curse to him and his whole families
2021-03-01 22:40
Go and take at least one year break. Do you not realize that people are condemning your articles? Do not be so stubborn and take a break. You are causing more harm than good. I really wish this webmaster can take down your account and ban you from writing for good. If you really think your writing is so good, then go make another account and stop using this account.
2021-03-01 22:48
with hundred of millions in hand. seriously why would you waste time to write bs article to cheat others? the only reason is he has lost all his wealth in stock market
2021-03-01 22:50
He lost all his reputation because of cheating and luring others to buy at expensive price. And then he himself quietly run away.
2021-03-01 22:52
for who.still.believe in kyy is like who still believe in najib. like what najib
2021-03-01 22:52
najib said - I never lied in the rest of my life. this is the biggest lie he ever lied
2021-03-01 22:54
I also curious. Of the whole bunch of listed companies, only glove companies make the most money. Petronas earnings? What about MPI, someone pls compare MPI, Tech stocks to glove and see what are their prices now, DIY, PER. No shares can compare to gloves.
2021-03-02 08:24
Whether he is a smart investor or not, helping ppl to earn more or what his greatest mistake is telling ppl to use margin to buy shares. I hope not many ppl flwg his adv buying using margin.
2021-03-02 08:58
Can't blame it totally on KYY if one is so lazy to do his/her homework!!!
2021-03-02 08:59
KYY is a scam; completely fooled innocent malaysians into holdung gloves and losing hundreds of thousands that they will never see again.
2021-03-02 09:33
Dear Mr Koon Yew Yin,
Pre-pandemic share price:
Genting Berhad: RM6.0x
Malaysia National Covid-19 Immunisation Programme starts end-Feb 2021 and expected completion by end-2021 (looking at the speed of progress, likely earlier). Full vaccinations are not required to see the effects of Covid-19 cases and most importantly deaths coming down (see Israel). Hence, by 4Q21 (Oct-Dec) you should be able to see the full effects. Note markets are 6-12 months forward looking (see Gloves). Therefore, latest by 2Q21 (Apr-Jun) we should see share prices pop back to at least pre-pandemic levels
Note: this has not take into account re-rating catalysts:
a) Pent-up demand from revenge travel and gaming (Lifting of lockdowns - MY; UK)
b) Skyworlds (2Q) and Resorts World Las Vegas (summer)
c) Celularity Inc listing (2Q21; assume 10% holding only)
d) *Mashpee Wampanoag Tribe promissory notes USD426.3 mil write-back
e) Resorts World NYC expansion
f) Resorts World Hudson Valley
g) New York state sports betting license bid
h) Japan Integrated Resort (IR) bid
i) Resorts World Sentosa upgrading
j) Plantation - CPO record high
k) Energy - Brent crude oil above USD 60
l) Property - Cyclical sector in an upcycle
m) Life Sciences - Huge potential (see US biotech and genomics co's)
n) International borders reopen / travel bubbles / vaccine passports
o) WHO declares pandemic over
Disclaimer: The information and opinions expressed here are for educational purposes only and the contents of this post should not be construed as financial advice and does not constitute a buy or sell call. Consult your investment advisor before making any investment decision.
2021-03-02 10:23
You are not wrong historically, however majority of market players anticipated that glove profits will dropped tremendously. Stock market is looking forward kind of thing, not looking backward.
Replied to:
moregain I also curious. Of the whole bunch of listed companies, only glove companies make the most money. Petronas earnings? What about MPI, someone pls compare MPI, Tech stocks to glove and see what are their prices now, DIY, PER. No shares can compare to gloves.
02/03/2021 8:24 AM
2021-03-02 10:28
Unless you believe the profits level will stay there for many years, then it is undervalued, or else, it is subjective
2021-03-02 10:29
kyy oredi got deliveredddd his LAST sermon on Supermax.
Just say good bye n go on some other stock ?
2021-03-02 10:34
Hi, my 5 cents worth. A Swiss Trade Axiom, "Trade What The Market Wants, And Not What We Want". If we follow this axiom, we will slowly discover that "trading is fun".
2021-03-02 11:26
@ cching86. Agreed with the Swiss boys. They're astute traders. Geezer don't seem to understand trading yet borrow so much on margin to trade. He is reckless, arrogant, boastful. In short, he deserve to lose.
2021-03-02 13:16
Share price doesn't have to follow the PE or EPS standard level.
If you fix the post pandemic healthcare stocks to PE 5 (2021-2022), you'll see the logic behind the drop.
PE of 20 is for business with a bit of growth.
PE of 40 is for business with a lots of growth potential.
PE of 80 is for business with potential monopoly.
PE of 10 is for business with a little of growth potential.
PE of 5 is for business with a potential loss in the coming years due to competitions and price crunch.
And again, this is just a reference. The standard may change.
2021-03-02 14:37
PE of 5 is for business with a potential loss in the coming years due to competitions and price crunch.
-------------------
so true, when hengyuan trade above 16 in 2017, the PE is only 6 ... and we all know what happen next ...
2021-03-02 17:41
Already keep telling those newbie trader don't simply invest stock according to pe ratio. Don't say current glove pe very cheap then you got to buy.
2021-03-02 21:30
Khatu also in glove kah? Hahahaha... Lionind you profited until 3 generations tak habis makan
2021-03-02 21:46
He will be right, market is up and down... Easily to guess... Anyway he is crocodile... Trap a lot ppl
2021-03-03 00:05
i dont want to curse the old man lar, however agree to all of you who does so.
2021-03-07 13:00
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CS Tan
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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....
godhand
try hard koon. idk how ppl lose money in 2020 and 2021
2021-03-01 16:57