Koon Yew Yin's Blog
Glove supply exceeds demand - Koon Yew Yin
Koon Yew Yin
Publish date: Tue, 20 Apr 2021, 03:05 PM
Koon Yew Yin
0 1,446
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
Many a time I was tempted to buy glove stocks because I expect all the glove makers will report increased profit in the next quarter. But after careful research, I have decided to write this article to forewarn investors.
The price of medical glove has been shooting up higher and higher since the start of the Covid 19 pandemic in early 2020. As a result, all the existing glove manufacturers have been expanding their production to make more and more profit. In fact, many companies which are not in the glove business also diversified to make gloves.
I know the names of some of the new glove makers in Malaysia namely
1 At Glove
2 Mah Sing Healthcare
3 AXG
4 Leader Steel
5 Rimba Gloves
6 HLT Global
7 Kanger Tech
8 CE Technology
9 Inix Technology
10 23 Gloves Johore
11 Luster Industry
Although I do not know the names of glove makers from China, but I can imagine how quickly the Chinese Entrepreneurs would have taken advantage of this profitable opportunity.
The US is our biggest glove market. The US Government has provided many incentives for glove manufacture in US because they do not want to depend on imported gloves.
Supermax has increased additional production lines in all its existing factories and started to construct new factories in Canada.
Top Glove also has expanded its production lines in all its existing factors and started to construct new factories.
The European Union has provided large sum of money for the Covid 19 pandemic prevention and low interest loan to encourage investors to start glove factories in Europe.
Due to massive vaccination, the number of new Covid 19 cases is gradually being reduced. As a result, the demand for medical gloves is also being reduced gradually.
Based on the above factors, I wish to point out that the average selling glove price will continue to drop due to oversupply. As a result, all the glove makers will not have profit growth any more.
Investors must remember that among all the stock selection criteria such as NTA, Cashflow, PE ratio, dividend yield, debt or healthy balance sheet, etc, the most powerful catalyst to move share price is profit growth prospect. Never buy any stock that has no good profit growth. Never buy any stock if it cannot report increased profit in the next quarter.
The above is Supermax price chart which is showing down trend. Investors must never buy down trending stock. I should have sold my holding of Supermax as soon as it started to drop. I delayed and I learned an expensive lesson.
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Discussions
Be the first to like this. Showing 50 of 167 comments
Look like Uncle KY causing alot of people losing $$, alot of hatred comment here :)
2021-04-21 11:31
??????? - JAKS (2018) Just like Supermax recently:
MR KOON YEW YIN 29-Nov-2018 Disposed 7,610,000 0.000
MR KOON YEW YIN 28-Nov-2018 Disposed 7,583,600 0.000
MADAM TAN KIT PHENG 23-Aug-2018 Disposed 620,000 0.000
MR KOON YEW YIN 23-Aug-2018 Disposed 909,000 0.000
MADAM TAN KIT PHENG 21-Aug-2018 Disposed 2,043,600
MR KOON YEW YIN 21-Aug-2018 Disposed 1,950,000 0.000
MR KOON YEW YIN 20-Aug-2018 Disposed 5,697,700 0.000
MADAM TAN KIT PHENG 17-Aug-2018 Disposed 1,650,000
MR KOON YEW YIN 17-Aug-2018 Disposed 3,200,000 0.000
MADAM TAN KIT PHENG 13-Aug-2018 Disposed 1,350,000
MR KOON YEW YIN 13-Aug-2018 Disposed 3,416,400 0.000
MADAM TAN KIT PHENG 10-Aug-2018 Disposed 1,609,300
MR KOON YEW YIN 10-Aug-2018 Disposed 1,620,000 0.000
MADAM TAN KIT PHENG 09-Aug-2018 Disposed 3,107,800
MR KOON YEW YIN 09-Aug-2018 Disposed 4,320,000 0.000
MR KOON YEW YIN 08-Aug-2018 Disposed 6,872,000 0.000
MR KOON YEW YIN 07-Aug-2018 Disposed 6,850,300 0.000
MR KOON YEW YIN 06-Aug-2018 Disposed 1,356,800 0.000
MR KOON YEW YIN 03-Aug-2018 Disposed 2,711,100 0.000
MADAM TAN KIT PHENG 30-Jul-2018 Disposed 1,000,000
MR KOON YEW YIN 30-Jul-2018 Disposed 6,662,900 0.000
MADAM TAN KIT PHENG 27-Jul-2018 Disposed 693,000 0.000
MR KOON YEW YIN 27-Jul-2018 Disposed 2,962,500 0.000
MR KOON YEW YIN 26-Jul-2018 Disposed 1,599,900 0.000
MADAM TAN KIT PHENG 25-Jul-2018 Disposed 1,250,000
Fool You Yin is the LOSER, bro.
Hector Look like Uncle KY causing alot of people losing $$, alot of hatred comment here :)
21/04/2021 11:31 AM
2021-04-21 11:35
To be frank, his blogger/article is BIAS and easy to mislead people, no same like 冷眼 more neutral!
2021-04-21 11:43
Feb 8th (Gambling GOD Mode - Margin Finance MAX): Supermax price dropping defies logic - Fool Yew Yin
"This target price of Rm 15.60 is easily achievable. Investors must not sell their holding but wait patiently for the next few months to see the increased EPS. The downside risk is minimum."
March 3rd (Margin Call Losses MAX - Save FACE time): TA is more important than FA - Fool Yew Yin
"I am ashamed to admit that I learned my most expensive lesson which is TA is more important than FA.
"Fortunately, I sold all my Supermax about 3 weeks ago instead of buying more at cheaper prices to average down."
(Blatently Lying to Save Face). - HAHAHAHAHAHA!!!
2021-04-21 12:03
Remember when comes to Supermax, kyy conned us before!! He actively sold and also actively promoted to people here to buy.
KYY said ----"The above is Supermax price chart which is showing down trend. Investors must never buy down trending stock. I should have sold my holding of Supermax as soon as it started to drop. I delayed and I learned an expensive lesson."
On the contrary, I was told Supermax is now an Up trend stock, it crossed 70 SMA of RM5.35 and on its way to confirm a Golden cross buy signal. Perhaps a chartist sifu here can confirm??
Judging from Kossan result, supermax is expected to announce a record Qtr profit end of the month. Who say no profit growth in coming Qtr?? only KYY!!
He may be right in 2023?
2021-04-21 12:13
If i am not mistaken you were saying the opposite just a fews ago that more gloves would be needed.. even with vaccination going on. It can't be that you did not have the foresight to know that more players will enter the market with prices of gloves so high....seen comments by others how they felt "played out" on other cases as well.. I now see why so many view you suspiciously...and the recommendations you make..rightly or wrongly..Anyway i do smetimes read your comments on stocks..not on social issues which I find to be wayout and possibly inline with private sentiments
2021-04-21 12:18
Sorry to say this but this post, when read with previous ones, sounds so sour grapes. Koon has shown how erratic he has become since last year. Especially after the AT episode. Not to mention his about-turn regarding Supermax.
So how does this gel with his so-called "Golden Rule"? `More supply than demand' regarding gloves? Where did he get his data from? In reality glove makers are among businesses that are in very comfortable positions. Until this changes, it would be silly to not buy and keep glove counters. Just because there are now more companies entering the fray.
By the way, what is his comment on Kossan's monster Q1 2021 results announced yesterday? Are these signs of a glut in the gloves market?
2021-04-21 13:23
proven again this guy write up article for himself only. never again trust this fella
2021-04-21 13:46
haha...many kena conned. now only woke up. so typical. what a typical cycle trapping new ikan bilis every year. lol
2021-04-21 15:41
Uncle Koon, You have been promoting glove stocks for the better part of the glove downturn. You were still positive on glove stocks when you preached your last sermon. Come on. It has been less than 2 months since. Surely, the production plannings didn't just pop up in the last 52 days. Just because you have sold out your glove positions doesn't mean that you must badmouth the glove stocks. This is very bad faith on your part.
2021-04-21 17:20
I bought aggressively during the crash and i am still holding them. Now i "sailang" in Glove counters again. See i am lucky or the word from ur mouth will come true. But i can tell u, I am very lucky recently years, bought watever also up like crazy....... My advice, dont con the public again. Karma will come to u. Last, ur integrity has become ZERO. No one will trust ur words even OTB is asking people to buy
2021-04-21 17:49
i still remember old man said that the world got xxx people and it will take many years to vaccinate them plus gloves are needed for jabbing vaccine...haha
2021-04-21 18:00
Omg, still writing how many articles for gloves???
Cry also no tears.
Uncle no more gloves shares... still want to write gloves articles... Why???
2021-04-21 19:43
Uncle's heart very painful after he cut win at bottom few weeks ago n now c the price level is 50% higher than his seling price
2021-04-21 19:49
OSLO (April 21): The pandemic is be-coming less dominant in the markets and other risks, such as inflation and a stock market correction, are rising, as vaccines fuel optimism and recovery, a top official at Norway’s US$1.3 trillion wealth fund said on Wednesday.On the basis of strong stock markets, driven by the finance and energy sectors, the world’s largest wealth fund on Wednes-day reported earnings of US$46 billion between January and March, a 4% return on investment that beat its own bench-mark index.“I would still put it (the pandemic) as one of the top three risks, absolutely, at this stage. We are seeing a slightly more balanced risk picture because there is more optimism now for growth and inflation,” chief executive officer Trond Grande told Reuters after the first-quarter results.While stocks earned a return of 6.6% for the fund, the fixed income portfolio had a rare loss of 3.2%, as interest rates rose substantially after a prolonged slide.“What you are seeing are some signs of some build-up of some inflation here and there, at least on the materials and raw materials side,” he said.“If that translates into inflation more broadly, I think you could see interest rates rising further,” he said adding that he had been a “little surprised” by the strength of the equity markets over the past year.“There will be at some point a correc-tion. We just need to be prepared for it,” he said, declining to say when he expected it.The fund invests the Norwegian state’s revenues from oil and gas production into 9,100 companies worldwide, owning 1.4% of all listed shares globally. It also invests in bonds, property, and since this month it has invested in green infrastructure.Its investment comprises 73.1% in eq-uities, 2.5% in unlisted real estate, and 24.5% in fixed income.
2021-04-22 10:18
3.30pm - Supermax up 6.5% ... hmmm .. so who likes to talk big, talk kok, huh, Sir Chimpanzee Fool You Yin?
What happen when you use Margin Finance, like a MONYET?
Hahahahaha! tehehe
:DDDDDDD
2021-04-22 15:32
March 3rd (Margin Call Losses MAX - Save FACE time): TA is more important than FA - Fool Yew Yin
"I am ashamed to admit that I learned ***my most expensive lesson*** which is TA is more important than FA."
2021-04-22 15:35
TA reverse uptrend since last week, thats why uncle ask u not to buy until he hoot enough
2021-04-22 18:56
Uncle , pls take care of health..............we need you as you are certainly a top class bellweather.........
2021-04-22 20:46
Feel sorry for uncle...
I can see he is crying while writing this article..
Meow
2021-04-22 21:51
Yes, just leave him alone as he had also done a lot of good stuffs earlier to the community.
Woof, woof
2021-04-22 21:56
Glove over supply is showing symptoms now.
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3150353
2021-04-22 22:16
Karma will punish him maybe in the form of covid infection. What u stole will be take away from u
2021-04-22 22:54
I don't know why he haven't shut down his blog. Maybe god say enough, I will shut him up and stop him from RO stealing, and infect him with covid
2021-04-22 22:56
Remember, god is fair. U cannot steal from others and cause people to lose their livelihood and then say I want to have a happy ending. No such thing. Too bad for the old fart. He will not die with a good legacy. At least Warren buffett when he dies, people remember him as a great investor. But not even the rat in the street even remember him.
2021-04-22 22:58
Such content in the article were totally contradicted from previous articles written by uncle.
Last time, uncle aggressively called buy for supermx.
However, now different.
Good luck uncle.
2021-04-22 23:42
Please take a look PE of Glove Manufacturer Mercator Medical. Ticker is WSE:MRC
Current PE is 2.5 for 2020, PE for last year (with latest earnings estimate from this week) is 1.9. There's no other glove company with such low PE. All Free Float can be procured with current price for less than 250 mln USD.
Please support and share. Looks that someone is making fun of shareholders. Especially when all other Glove companies returned to positive trend.
If you look on current price you'll know it's a joke.
2021-04-23 02:19
nothing else to talk bad about glove
Thn bring up mercator. Why so desperate??
You just a laughing stock....
KUKU fella
LOL
2021-04-25 10:45
when uncle said buy then fast fast sell, when he said sell then fast fast buy... lol
2021-04-26 11:31
In Feb this old man so confident about supermax will reach rm15.40 and ask people to buy.
In March, he secretly cut loss when supermax reach its lowest price.
In April, this old fox keep bashing glove counter when most glove price rebound.
Lol uncle u regret cut loss is it??? Lol serve u right, karma will bite u back old man
2021-04-30 19:09
My sifu told me in economics...if u keep the product prices too high & u continue make super profit....eventually u attract many many more players & competitors...and this will cause the ASP to drop very fast...and eventually it will cause a huge gluts in the industry as all the players are unable to stop or reduce production, bcos of committed fixed or sunked cost loh!
Thus longer run business prospect will be a disaster...they will be shake out loh!
2021-05-01 11:18
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