Anyone already from ikan bilis status to jerung status because of glove stocks? I intend to post my journey soon. Million ringgit investment gain. That will be a nice investment journey to share.

https://www.thestar.com.my/business/business-news/2020/06/30/glove-prices-soften

Accoring to the Star, prices are softening based on their internal check on glove prices listed on an e-commerce website.

Based on my checks, I was unable to ascertain this as the gloves are presently unavailable Presumably out of stocks

https://www.amazon.com/slp/surgical-gloves/muyqoj2jmuj57p9

It the revision in ceiling price set by Maybank is genuine, then it’s actually good news because the previous capping in early June caps supermax price at RM3 sth. With this revision, margin players will have addition headroom in their facility to buy more shares. These additional liquidity will eventually made its way into the market.

The Maybank thingy is a modification loss. It’s nothing more than accounting requirement to recognize a loss due to changes in the timing for the receipt of cash inflow of their loan due to the moratorium. The modification loss is equivalent to the Difference in NPV between the modified cash flow against the initial cash flow. See, nothing more than a a bunch of losses simply because accounting treatment dictate so. The actual economic costs to Maybank arises from their inability to charge interest on the outstanding principal amount that has not been reduced as per initial loan repayment schedule due to the loan moratorium

anyone can verify if the news on the revision of margin capping for glove counters is genuine?

road block at 14.8 cleared

next road block 14.8

Dear all investors, I think we have just landed a gold mine. While this pandemic has unleashed unprecedented economy and health crisis, it has also created unparalleled demand for glove which serves as a basic PPE in managing the pandemic. Demand has surged due to consumption by healthcare front liners and stocking activities by nation to ensure they have minimum stock pile that enable them to meet the heightened demand for a duration of time. As the situation unfold, we also learnt that new demand has emerged from other non-healthcare related sectors such as retail, F&B, air travel, etc, as almost overnight, everyone are scrambling to implement new practices that aim to reduce the risks of Covid infection. At the rate the situation is unfolding, demand will continue to surge and we are bound to learn new pockets of demand for glove that had never existed before. As demand increases, so does the selling price as purchasers bid up the price to secure immediate stock pile since the cost associated with disruption arising from lack of PPE could be much higher than the hike in glove price, the higher glove price is a small price to pay. Taking into consideration of this extreme favourable situation, investment thesis in glove counters became an easy one especially in present challenging and uncertain business environment whereby the economy crisis brought about by the pandemic is still unfolding and still fluid at the moment. Nobody knows what other black swan event may surface as the world implement a synchronised movement curtail which has since been coined as the Great Lockdown. All this is before taking into consideration of what the favourable supply and demand dynamics that will be contributed by emergence of 2nd wave pursuant to countries reopening their economies in a hasty manner.

Such investing opportunities rarely present itself. I am not sure about you, but I am holding my glove counters and enjoying the development in glove maker business which seems to tilt in the favour of the glove producers with each passing day and this is just the beginning, as the end is not yet in sight.

congrats to all who sapu yesterday during the global blood bath. Forward we go marching on...

significant support at physocological support level of RM15

aiks big volume buy side lai liao

hi speakup, its good news because it means your remisier is a fortune teller with crystal ball

secretinvestor 8888, truth is nobody will pay for any stock predictions from someone that has a buy call on BAT especially when the the tabacco industry is plagued by risk of sin tax and huge illicit ciggarete trade

lai lai cheap sale. Better hurry, the collecting frenzy has begun

wow thank you dow jones futures! cheap sale lol

The sell down on dow jones futures is primarily due to the negative sentiment on emergence of new covid cases post reopening of their economy. This is definitely good news for glove counters as the threat of escalating covid infection will ensure demand for gloves to remains elevated. Just wished that my request for increase in margin facility has already been approved. Damn.

Wah Genm2020, you ikan paus ka

all those system hang , call broker, get them to purchase for you

ok the bull has taken over. Lets bask in the glory of second wave everyone

today regional market spooked by US Federal Reserve's pesimistic outlook on the US economy. No show today. Sadness...

oo i see just now just warm up, now comes the real show

also the entire region is down. This is not a glove counter thing

that was 5 seconds of happiness

It has been annouced that the QR release shall be done on 11 June 2020. Please refer to annoucement dated 4 June 2020

momentum has definitely slowed down if compared to the pre-margin-facility-capping era. But I guess slow and steady is a good thing. Reminds me of the March - April period

"all engines running... we have liftoff... Houston....FYI... we ain't coming back"

guys correct me if I am wrong. I understand that HengYuan is a refinery, which derives its profit from cracking crude oil. Meaning apart from look at the price of crude soley, one must also observe the prices of the end product of the cracking process. In short, its profitability is dependent upon crack spread, the wider the spread, the higher its profit.

The bull run back in 2017 is due to the widening of crack spread, and its not due to increasing price of crude oil.

The outlook of refiners are not too hot at the moment:
https://www.cnbc.com/2020/06/08/oil-price-rally-and-saudi-price-spikes-could-hurt-refiners-market-recovery.html

common go up, i want to buy condo with cash

i think the deliberate spreading of misleading information such as the sky high target price issued by Public Bank is disgusting and misleading. Worse is that such dishonest act does not even help is swaying the share price movement of Top Glove

Sifu Lanesra, how big is your total investment portfolio in terms of $$. Always an inspiration to bilis bilis like me

Potential upside even after vaccine is discovered. Widespread administration of vaccine to boost demand for glove.

SINGAPORE: Northcape Capital Ltd., one of the largest shareholders of this year’s top gainers in Asia -- Top Glove Corp. and Hartalega Holdings Bhd., says the two stocks have further room to run.
The pandemic has caused a structural change in demand for gloves, so earnings at some makers will double in each of the next two years and drive their stocks to outperform, according to Ross Cameron, a fund manager at Northcape, which overseas about $7 billion in assets globally.

“The duration of super-normal demand is still longer than most people realize, ” Cameron said. Factors that will continue to support the share rally include product price increases and the fact many nations are ill prepared for pandemics, he said.
Shares of the world’s biggest glove makers Top Glove and Hartalega, both listed on Malaysia’s bourse, have soared 257% and 136% this year, respectively, making them the top gainers in MSCI Inc.’s broadest gauges of stocks listed in Asia and emerging markets.

Their rally has vaulted the two firms into the list of top companies in Malaysia and driven their valuations into uncharted territory.
Northcape, an Australia-headquartered asset manager that has been investing in the shares of glove makers for more than a decade, bought more glove-makers’ shares early this year “when signs emerged that Covid-19 would become a global pandemic, ” Cameron said.
According to his calculations, Top Glove will generate average earnings growth of more than 100% for each of the next two years while Hartalega will also deliver “exceptionally strong” earnings growth as personal protective equipment purchases increase globally.
Some glove makers have “an order backlog all the way out to June 2021, ” compared with one month before the pandemic, he said. The discovery of a vaccine to prevent Covid-19 disease will also help keep demand elevated because “glove companies and some experts have noted that the widespread administering of a vaccine will actually result in a further spike in glove demand, ” he added.
Shares in Top Glove and Hartalega are trading close to their record valuations based on 12-month forward estimated earnings, according to data compiled by Bloomberg. Analyst price targets have failed to keep pace with rapid stock gains.
Cameron said that “analysts are still behind the curve in updating their estimates, which is why the stocks look expensive on a headline basis.”
Most of the analysts “still underestimate how high margins could go in this environment, ” he added.
Northcape’s earnings estimate for Top Glove for the fiscal year 2021 is more than 60% above the Bloomberg consensus estimate. This puts Top Glove on a forward price-to-earnings ratio of just 23 times, Cameron said. That compares with 37 times based on estimates of analysts tracked by Bloomberg.
“There are very few companies globally which can deliver anything close, ” he said. - Bloomberg

KYY is betting on glove counters with an expectation that the earnings , aka quarterly results will be good. And i quote KYY "share prices will go higher if a company's earnings is higher than its previous earnings". Growth in earnings is the catalyst for upward share price movement. Having said this, the present share price movement of recovery theme counters is a reflection of future earnings ahead of those that is slated to be released in the near future.

I dont mean to insinuate the there will definitely be a price correction for recovery theme play counters upon the release of their results. I simple highlight my personal concern of the impending poor results that is slated to be annouced in the coming quarterly release.

Cash up front for glove counters, or any counter as a matter of fact is a scenario that will never happen as the concern of the IB is really the rapid rising of the collateralised stock under the margin facility. Capping the security value taken into the computation of security value is already effective enough to manage their risk. Cash upfront is effectively saying that a bank is not willing to finance the glove counters or glove stocks has zero value. This is highly unlikely to happen.

Airport, Air Asia and Genting are all the recovery play given that these counters were the ones badly bashed down given the syncronised travel curtail. Certainly another theme that must not be overlooked. However, the results of these counters are expected to be bad in the next quarter release as the result these quarters would bear the brunt of the Great Lockdown

There is not much concern on the price fluctuation. Prices fluctuate every min. There will always be investors that will be happy to exit at prevailing prices, this is common. As far as glove counter is concern, the upside is still intact given the present supply and demand dynamics for glove products. Presently, the demand far outstripped supply and this will drive up the selling prices for gloves. Also these glove counter's capacity has all been locked up for at least until June 2021 based on present lead time, which effectively means orders are being placed now for a delivery 12 months down the road. To put things into perspective, the usual pre-covid lead times between 1 - 1.5 months. In a nut shell, sales order are locked in at least until the next year and once again this is based on present situation.

This present situation has given rise to certainty in earnings growth for next few quarters. Not many companies can offer such investment oppurtunities in the present economic landscaped that is still being ravaged by the great lockdown. And bear in mind, all these factors are based on what has already unfold up to this juncture, no one really knows to what extend the selling prices for glove can rise. Remember this, covid 19 caught the world by surprise and the existing capacity expansion or expansion plan is insufficient to cater for this sudden surge in global glove demands. What will happen to the glove selling prices is really anyones guess. But with demand far outstripping supply, and glove being a crucial PPE for any nation to effectively manage the covid outbreak, it can be said with rather high certainty that increase in selling price is almost a forgone a conclusion.

Hi ongzhenghong, its in the same link you shared. At the bottom of the page, highlighting the dates for investors relation events

Hi sunra 88, thanks. I must have refered to an old link

Their corporate website says the quarterly annoucement is proposed to be released on 18 June not 11 June. 11 June is just an investor relations event.

I am looking forward to get some discount from the selling preasure of margin facility investors. Does anybody think this will happen?

DannyArcher, thanks.

DannyArcher, where did you see this?

The recent sell down is solely attributable to the security value capping measure implemented by the FIs for glove counters, in respect of their margin facility. The need to enforce this, stems from the FI's risk management requirement which serves to increase additional buffer on security value of its security on collateralised glove stocks. In addition, this measure limits the FIs exposure to loan asset or collateralised security with similar risk profile. In short, to manage concentration and security value risks.

Presently, it was reported that 2 FIs have already implemented this capping measure namely Maybank and RHB. Perhaps more will join them as an immediate adjustment to their risk management practise, in light of surge in both their loan asset and collateralised security associate with the glove counters.

The way I see it, there are 2 ways to capitalise on this situation. One can either accumulate as the selldown exerts additional downward pressure on price as more FIs implement their respective capping measure, or if an investor is already holding glove counter, he can opt to sell first and buy back later.

Both strategies are subject to uncertainty surrounding how many more FIs will implement similar curbing measure and the timing of which selling pressure ebbs. Alternatively, investor can opt to ignore the short term price fluctuation resulting from the capping measures and hold for the next 6 - 9 months. This will save you the hassle of incurring transaction costs and attempting to time the market on factors that is entirely independent from the fundamentals of the businesses underlying the glove counters. These are glove counters after all, expectation of 'mind boogling' earnings expansion in the immediate next few quarters is still intact.

Stanley Thai's daughter bought 100,000 of Supermax shares on 27 May 2020. Closing price was RM6.9 on that day.

https://www.klsescreener.com/v2/announcements/view/3164337

The delay in its QR release is as annouced, the MCO has disrupted its financial reporting function and now it needs more time to prepare for the release. I do hope it is as simple as it sound.

And have to admit that the disposal of shares by the Group Chief Accountant does raise eyebrow indeed. I just hope that the disposal is not motivated by upcoming subpar QR release. But looking at the timing of the disposal, it was done when the prices was at historical 10 year high. Maybe she is not used to seeing the price at this 'new norm' level and subsequently could not control her urges to press the sell button.

As for Hexza's performance, Ethanol prices has increased 4 folds since February as reported in CNA's article. Imagine revenue just jump by 4 folds while cost is maintained. This would be a boon to the company.

However, Hexza's Resin business should be a downer since this segment is correlated to furniture industry. Good thing is contribution from this segment is insignificant. Just hope it doesn't create a 'hole' that needs to be filled by its Ethanol segment.

Another thing to worry about is its massive investment. Value of investment could be impacted by overall sentiment in the stock market. I mean you guys have been observing global stock market performance lately right, its definitely not rosy.

good to know that RGTBhd will do well despite their single major offtaker is not sounding too hot lately

https://www.businesswire.com/news/home/20200501005158/en/Newell-Brands-Announces-Quarter-2020-Results

make up your mind JN88, is it overvalue or undervalue

https://www.voanews.com/science-health/coronavirus-outbreak/malaysia-loosens-lockdown-rules-meet-soaring-global-glove

which SOB mistakenly refuelled Top Glove with rocket fuel today?

I noticed that Hartalega has call warrants too. Dont think this is the factor.

no me bocor, the news bocor. This is called effective dissemination of information, its a good sign. Sign that the market is efficient