Tradeview Commentaries - To Glove With Love, Merry Christmas

tradeview

Publish date: Thu, 24 Dec 2020, 08:36 PM

Dear all, it has been difficult year for most. It is especially tough for the B40 and those who have lost their job or had to undergo a salary cut / VSS. In these trying times, many struggled to get by and provide for the family. Even those with emergency funds set aside (The rule is minimum 6 - 9 months saved for rainy days) would probably have dried up by now in the event one is not able to find a job or for business to return to normalcy. Such is the state of the economy in the face of adverse pandemic circumstances. This is truly a shocking start to a new decade.

During the height of the pandemic, I was having a meeting with one of the listed Singapore glove makers. It was a work meeting but I had the chance to ask him "how do you feel that glove stocks are now deemed beneficiary of Covid-19". He said "no money in the world, can replace the lost of loved one or having to see your love one suffer due to sickness, if I had a choice, I would like to see the pandemic end yesterday."

In another interview with the IR present, my close friend who is a research analyst had a management meeting with one of the big 4 glove makers' son. During the management interview, my research analyst friend asked "why is your company increasing the ASP for gloves at much slower pace than your competitors?" The answer given simply "Gloves are PPE, which is meant to protect front liners and end users against this deadly pandemic. If we were to hike ASP of Gloves too arbitrarily, and in turn our distributors do the same, the one that suffer would be the end consumer. Those who can afford, it is ok. Those who cant afford, will then switched to alternative self-made PPE which are not effective against this fight."

Both of these true stories was a humbling experience to me. It made me respect both glove makers entrepreneurs more and learnt that not all business was about profiteering or bottom line. There are entrepreneurs and owners who cares. This is probably due to the fact both of these founders did not come from money and build their business from ground up through hardship of life and poverty. They are rare but they do exist and they placed the importance of the welfare of their employees, end users far above even that of shareholders or investors like me. Ironically, my investment philosophy being a fundamentalist is choosing companies like this which has management that values employees, customer relationship as part of my investment portfolio. I always tell my readers, I rather pay a premium for wonderful management of good companies than pay cheap price for ordinary companies.

It has been a whirlwind year for those who invested in the stock market be it out of passion, interest, need, desire or simply opportunity. I believe with the record high retail participation rate, many who invested in the market is because of the glove makers. I also know many institutional funds, retail investors and foreign funds have many a handsome profit from investing in glove stocks. EPF too, recorded commendable investment income from equities which would definitely go to help towards those who need early withdrawal from iSinar & i-Lestari programmes.

I did mention I have written too much on the sector even though Glove stocks are only part of my all weather diversified portfolio. There are 2 reasons I am writing this article today :

1. To give my gratitude to the glove sector as I did benefit from the stellar performance in share price like most others through 2020 and also the lessons learned from the glove sector be it in life and investment. I am actually very proud as a Malaysian that the glove sector can play a role putting Malaysia in international limelight in the fight against Covid-19. For once, not everything used by global population was manufactured in China or Vietnam or India but Malaysia.

2. Is to correct a misconception in today's news article below by the Executive Editor of Focus Malaysia, Mr Cheah Chor Sooi, who selectively highlighted one paragraph from my 14th December 2020 commentaries, calling it "Deceitful". I do not know you Mr Cheah, and I have nothing against you. But if you had the chance to read my blog, and all my past posting be it glove or non-glove related (I think there is no less than 50 articles in 2020 alone), you would probably realise I built my reputation over the past 6 years on transparency, accountability and objectivity. I am not some fly by night writer. My belief is not very much different from you who was an award winning Writer of the Year by Minority Shareholders Watchdog Group's (MSWG). Of course, I am no where as successful as you, I am just a financial blogger.

You probably did not like the fact that my "Friendly Advice" came across as a generalisation that there is a concerted effort by various parties including the media to witch hunt the glove sector. I actually do not think there is a concerted effort by anyone. I only seek fairness, objectivity and no double standard in scrutinising across all industries. I cannot blame you as you probably didn't read my past writings. If you did, you would know I have been critical of Top Glove handling of labour issue and Covid-19 outbreak. If you did you would know that my favourite glove stocks are Hartalega and Riverstone which are my Long Term Value Picks who are true champions of ESG. If you did you would have read my letter published in Nayang calling out Koon Yew Yin's call on Dayang in view of protecting the small retail investors. If you did read my writing properly, you would know I am not absolving any law breakers of responsibility but if scrutiny is imposed it should be fair across industries like plantation, construction, steel, agriculture.

I am an independent, objective writer who have firmly said NO to offers by syndicates to "goreng" stocks for pump & dump operations because I care very much about the little guys (retail investors) and hope the stock market can be an avenue for the pursuit of happiness just as it has been to me. I believe you are a reasonable man. Just as you do not like media being called out as bias or sensationalising news on the glove sector, I do not like being called "Deceitful" by you. It is a wrong choice of word unsubstantiated by facts. I would like to put it to you, personally, I have utmost respect for journalist, nurses and teachers who have the most underpaid but noble profession in the world. However, if having an objective, independent and differing view from you is regarded as "Deceitful" in your context, I would gladly stand firm in my belief and take it on over and over again.

Merry Christmas and May 2021 be a better year for us all.

https://focusmalaysia.my/opinion/the-friends-and-foes-of-the-glove-sector-an-editors-confession/?fbclid=IwAR2z0-Pjt_Dc9PfycbESYvoeMjlRJTFOvAOq3vWfW_a6_q5RqSyld1edPDI

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Food for thought:

Discussions

7 people like this. Showing 13 of 13 comments

Lewis Lee

The "one of the big 4 glove makers' son" is Hartalega's CEO Kuan, obviously ...

2020-12-24 21:11

Lewis Lee

AFter reading this "Cheah Chor Sooi's articles", I can't help but feel that he should go and do more in depth research before embarrasing himself with his shallow opinion ...

2020-12-24 21:17

RojaknMojak

when the media is defending themselves hard...u know tradeview is right. the media IS bias towards glove companies ....lol

when u defend, that means u have something to hide

2020-12-24 21:36

Erudite

Tq 4 bein impartial voice in i3 . No deceit. Don noe wat tt fella complaining. Ur writing, 1 of d most informative. Those bising-bising kasi sama dia.

2020-12-24 23:07

enigmatic

Took me a while to understand the scenario.

So, FocusMalaysia(FM) posted an article labelling one of Tradeview's article as "deceitful". FM thinks the media hasn't written negative things selectively to run down the glove industry. FM thinks the media acts as check & balance, report good news when glove companies earn plenty and report bad news when certain glove companies have poor treatment of employees. FM feels Tradeview is misleading people to think the media is biased against glove companies.

Now, Tradeview being labelled "deceitful" is hurt. "Deceitful" is a strong word. It may damage one's credibility & insinuate bad intentions. If Tradeview writes its articles in good faith, without its content bluffing readers, FM may have misinterpreted & inadvertently described Tradeview as "deceitful".

2020-12-25 01:12

Sslee

It is awesome that we have the capacity to use words that can bring healing and strength to others. The words that we speak can add joy, enhance hopes, and sustain the health of the people around us.

On the other hand, it is sad that we have the capacity to use words that bring hurt to others. The words that we speak can destroy, tear down, break down, and devastate the people in our lives. Speaking hurtful or demeaning words to others can result in their failure and low self-esteem. “The tongue has no bone, but it is strong enough to break a heart”, so they say.

This, therefore, means that our use of words can have a positive effect on another person’s life or, in some cases, a negative effect.

The choice, however, regarding which words to use is ours; Proverbs 18:21 says that, “The tongue has the power of life and death”. We possess the power to replace negative words with life-giving words that breathe vision, dreams and hope. We can choose to use words that encourage, refresh, help, build, uplift, and edify. It’s inconceivable how much kind words from our lips can inspire the recipient to change for the better, to grow, and to have a higher self esteem.

More so the written words. So think what are the written words that gives rise to both author response?

I wish all a Merry Christmas and a More Productive Year 2021.

2020-12-25 06:57

Sslee

https://en.m.wikipedia.org/wiki/How_to_Win_Friends_and_Influence_People

How to Win Friends and Influence People is a self-help book written by Dale Carnegie, published in 1936. Over 30 million copies have been sold worldwide, making it one of the best-selling books of all time.[1] In 2011, it was number 19 on Time Magazine's list of the 100 most influential books.[2]

Twelve Ways to Win People to Your Way of Thinking

1.The only way to get the best of an argument is to avoid it. Whenever we argue with someone, no matter if we win or lose the argument, we still lose. The other person will either feel humiliated or strengthened and will only seek to bolster their own position. We must try to avoid arguments whenever we can.

2020-12-25 07:25

CCCL

Win one friend, less one enemy. Merry Christmas and Happy New Year.

2020-12-25 08:19

zhangliang

Ignore naysayers. Focus on investing. Believers believe. Non-believers bugger off.

2020-12-25 18:39

emsvsi

Nobody is witch hunting the glove sector

And certainly nobody is using 'snippets' from the glovemakers mouths and their humble beginnings, or the 'dire' economic situation we are in to paint the picture that the gloves sector is 'extraordinary', or that these companies are 'Malaysian champions and that we should be proud of them as Malaysians' to curry favour and sentiment from the general public and investing community

And then playing the victim card that of just being a 'humble financial blogger' and nothing like the other writer

2020-12-25 20:40

Erudite

Eh malu la, Emsvsi. Balik ur genting forum don buat kecoh. Ur Genting TP rm12, damm comic la. Super rich coming from lu la. Nak komen use facts & brains, don’t insult with ur half wit Cybertrooper spamming teknik. Ini FocusM suka sensation news u bising 4 wat. We all 4low TV blog make money, mana u? Ur genting TP rm 12 even tho 2 condos with workers all got Covid-19 theme park still open, double standard, jangan tipu la. U think v all don read annual report, go c who board of director / chairman of genting baru cakap. Don’t mislead public la

2020-12-25 22:03

Erudite

It is clear Sekarang, the 1 who is wrong is u, EMSVSI. How much ur losses now Genting + GentingM + all the warrants? Counting chicken before it keluar? Lu ingat lu pandai? Cakap banyak, y u hide in Gua Tempurung nw?

2021-01-08 15:58

zhangliang

Erudite, nvm... ignore naysayers. We make money from gloves, he make money from Casino. Let him b

2021-01-08 16:00

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