So many ppl create fear citing very low ASP or windfall tax etc.
Supply of glove depend very much on new players both here and China.
The est costs for new players are about US$36 to US$40 per 1000pieces based on Mah Sing recent report.
If ASP dropped to US20 or pre pandemic level, may new players will close shop including China companies.
So a very low ASP is unlikely to happen.
It should be above new player cost price plus at least 15% to 20% margin .
Otherwise, all new entrant stop production and this will only benefit current and more efficient glove companies as demand will greatly outstrip supplies moving up ASP much higher than expected.

Be patient.. The trend will reverse.

No joke.. Active covid cases are filling up US and many countries hospitals. Gloves are very essential in this fight.
Demands still high for a long while.


U.S. COVID-19 Cases Now Top 40 Million
WEDNESDAY, Sept. 8, 2021 (HealthDay News)

There have now been more than 40 million cases of COVID-19 recorded among Americans, according to a database maintained by The New York Times. That's nearly one-fifth of the global total of cases.

With the Delta variant of the SARS-CoV-2 virus cutting a swathe through the United States, and about 47% of the eligible population still not fully vaccinated, COVID-19 has roared back over a summer that began with Americans hopeful that the worst was behind them.

According to the Times, as of Sunday there have been an average 161,000 new cases of COVID-19 in the United States each day. Hospitalizations are topping 102,000 each day, and the daily COVID-19 death toll is now at 1,560.

The vast majority of people hospitalized and dying are unvaccinated, greatly burdening an already overburdened health care system. According to the Times, no state has yet gotten more than 70% of its population fully vaccinated.

Speaking last Wednesday, Gov. Brad Little of Idaho, a Republican, begged people in his state to get vaccinated: I wish everyone could have seen what I saw in the ICU last night, he said.

Things are so bad in Idaho that rationing of care is underway.

Dave Jeppesen, the state's director of the Department of Health and Welfare, said on Tuesday, When crisis standards of care are in effect, people who need medical care may experience care that is different from what they expect. For example, patients admitted to the hospital may find that hospital beds are not available or are in repurposed rooms (such as a conference room).

https://www.usnews.com/news/health-news/articles/2021-09-08/us-covid-19-cases-now-top-40-million

When ppl are fearful and in despair, its time to get greedy.
Mkt is irrational.

COVID-19 surge in the US: The summer of hope ends in gloom..
USA reported 158k cases
India 43k cases
UK 39k cases
Germany 14.8k cases
France 12.8k cases
Japan 10.6k cases
Malaysia 19.7k cases

ACTIVE cases are at record high.. its sad but truth.
Hospitals are filled with Covid patients
Gloves and PPE are needed to fight Covid war
Glove companies oversold.. its also true.

COVID-19 surge in the US: The summer of hope ends in gloom..
USA reported 158k cases
India 43k cases
UK 39k cases
Germany 14.8k cases
France 12.8k cases
Japan 10.6k cases
Malaysia 19.7k cases

ACTIVE cases are at record high.. its sad but truth.
Hospitals are filled with Covid patients
Gloves and PPE are needed to fight Covid war
Glove companies oversold.. its also true.

Share Price will follow companies performance in due time.
Demand for gloves are still intact due to variants.
Investors will soon realise how cheap these companies are..
High revenues and profits cannot lie.
Good Dividends distribution cannot lie.
Limit up is a matter of time.

RSS Shorties covering since last weeks..
No more meat to short anymore as prices are all oversold for glove companies.
They are creating fear again to cover.
All unite not to sell cheap for them to buy.
No contra too. Wait for limit up soon.

European countries such as France, Spain, Italy and UK all reported increased cases last few days.
Its rising due to D variants like in US and the other countries.
Glove play will come back soon....

CDC says nearly 67% of U.S. counties have substantial, high COVID-19 transmission..

https://www.reuters.com/world/us/cdc-says-nearly-67-us-counties-have-substantial-high-covid-19-transmission-2021-07-28/

JPM assumptions are all wrong.
Covid they assumed are over due to vaccine?
ASP they assumed dropped to pre covid?
All wrong..
Kossan profits dropped? Rev dropped?
Profits and revenues are higher than their expectation.
All gloves companies will report similiar results..

Shorts and JPM expected glove asp dropped n report qtr profits lower and lower since last qtr.. did it happen? Assumptions are all wrong. Proven today. More and more results coming.. Dun sell cheap.

Hospitals dont buy from non accredited sellers from lazada or any online platform.
Ppl lives at risk..
Dun make investment decision just based on some lazada sellers. Can lose your pants. Trade w care.

Windfall tax?
If no windfall again, why tax again?
Profits must be great. Results to be out soon.
LOL, JPM assumptions all wrong. Very wrong..
TP Rm6 soon. watch it.

Disposable Gloves Market Size to Reach Revenues of USD 32.24 Billion by 2026 - Arizton

The global disposable gloves market is expected to grow at a CAGR of over 10.84% during the period 2020−2026.

COVID-19 impacted the disposable glove market positively, the demand skyrocketed during the pandemic. Many vendors are already filled with the orders for 2020, and 2021. The vendors are working with full capacity continuously to supply the orders. Due to the pandemic and the global lockdown, there is a huge shortage of raw materials, which is increasing the cost of disposable gloves in the market.

The nitrile segment dominated the market; however the latex segment is growing at a CAGR of 11.40% by 2026. Large number of innovations, new synthetic mixed latex gloves are introduced into the market, which is accelerating the demand in the market.

The medical segment dominated the market, as they are the largest consumers of disposable gloves. Additionally, the pandemic further increased the usage of the examination glove across the globe and demand increased largely in the market and is expected to grow at a CAGR of around 11.64% by 2026.

The B2B/institutional distributional channel dominated the market. During the COVID-19 pandemic multiple governments were involved directly to procure the disposable gloves for their countries. However, the retail segment is expected to grow at a CAGR of 12.90%, as it is the mostly preferred channel of purchase among the end-users.

Dun believe JPM, their assumptions are all wrong.
Covid cases remain high. Some countries are seeing new highs.
PPE will be in demand. ASPs remain elevated.
Glove companies continue to make lots of money.
Current prices oversold.

Hold tight your shares.
After profit taking, TG price will limit up!!

USA is bracing for more cases..

Fauci warns US going in 'wrong direction'; Arkansas surge worse than last summer.
The nation is going in the "wrong direction" and new coronavirus cases will continue to climb unless more Americans get vaccinated, Dr. Anthony Fauci said Sunday.

Besides USA, European countries like UK, France and Spain are also rising up due to the more aggressive D variants despite the high vaccinated populations. Take care guys.
Long will win for the coming weeks.

Malaysia, Thailand, Indonesia, Myanmar, Vietnam, Singapore etc etc are all at record high.. Sad to see these cases happening.
Trade w care. PPEs are needed to protect us all.
Take care guys.

The US is at another pivotal moment in this pandemic as rising Covid-19 cases show no signs of abating, driven by the Delta variant, and some hospitals are filling up, especially in areas with low vaccination rates, government officials warned on Thursday.

The US government did not change its guidance on mask wearing, despite debates going on in the White House and the Centers for Disease Control and Prevention (CDC) about whether those who have been vaccinated should once again be officially advised to wear masks indoors to prevent the spread.

Rochelle Walensky, director of the CDC, said that the Delta variant of coronavirus “is now spreading with incredible efficiency” in the US and that, compared with the original coronavirus strain that broke out in the US in early 2020, this variant is “more aggressive”.
Advertisement

“It is one of the most infectious respiratory viruses we know of and that I have seen in my 20-year career,” she said at a White House briefing on Thursday, noting that the US is not out of the woods.

With D variants creating spike in covid cases in US, UK and all over the world, demand will shoot up again. Just look at active cases and hospitalisation numbers, it is moving up close to previous peak for some countries.
Gloves supplies in Malaysia cut by EMCO and manpower shortage and also China by floods..
ASP will soon move up strongly.

Once the price retracements are done, we can see all glove companies prices moving up and up again.
Coming results next month will probably push it even higher.
Patience will be rewarded.

Congratulations to all holders until now. More upside coming. Short squueeeeeezed coming. Goodluck.

No buy no sell.. but its time i think.

JPM said $3.5, do you all think they will action at $3.5 so predictable??
They may have started stealthy sssshhhh...

No fear. Top glove wont go under.
Made less profits but price cannot be so irrational.
RSI indicate oversold to the max.
Getting greedy.
Time for money made money . Period.

The forecasted over supplies by analysts are not coming any time soon esp with many rounds of MCOs delaying new factories being built.
For new players, if the projected ASP are much lower than their calculated numbers used in their investment, they are likely to cut down their plan or scrap them altogether to prevent losses..
See the quoted article below.

-------------------

MARGMA president Dr Supra quoted in March this year..
While a number of businesses have diversified into rubber glove manufacturing, seizing the opportunity presented by the pandemic, it’s not thought they will add significantly to supply.

From the dozen or so new entrants, only a small number have established production lines to roll out gloves in 2021. These will amount to fewer than 10 billion pieces this year, a drop compared to the 280 billion produced overall in 2020.

The vast majority of Malaysia’s additional supply of rubber gloves will come from the established players who have been aggressively expanding since 2019.

@Ular
TSL and his professional financial advisors heard your plea, thats very nice..

Bro, cannot be too greedy lah , 2.5m should be good enough.
Anyway TSL has acted and should be monitoring..

Saw someone place 2.5m wall at 4rm.
TSL is that you? :)

We are at 2021 half year.
Analysts predict based on 2023?
How to believe?

Taken from HLG
We lower Top Gloves FY21/22 net profit forecasts by -3.3%/-2.6%.
Kossan FY21 net profit forecasts -7.9% to account for lower sales volumes from FMCO impact on operations mentioned above.
We keep Hartalega forecasts unchanged as we had already factored in impact from FMCO.

Maintain OVERWEIGHT.
After adjustments to our forecasts, our TP for Top Glove (RM6.76 to RM6.72) and Kossan (RM5.60 to RM5.54) are adjusted downwards slightly.
We value the glove companies using with their pre-pandemic 5-year average PE multiple of (CY15-19) based on sustainable earnings in a post-super normal earnings environment summed with free cash flows (both discounted back to PV) generated during the boom period. This encompasses earnings in a post-pandemic era as well as high profits generated during the pandemic (Figure #6-8).
Our top pick remains Top Glove (BUY, TP: RM6.72).

Can anyone share how many gloves have ACTUALLY been churn out so far by new players?
How many gloves by end 2021?
Anyone?
TQ

@witan

How can MD know more than Chairman ..lol
We are not school children bro.
If TSL buy, you say its his ego
If TSL no buy, you say he has no confidence
So how? Difficult to satisfy you lah..
TSL bought because he fully aware his company is oversold big time and deeply undervalued.
He wanna tell his supporters and shareholders that he is confident of the company bright future.
He will not abandon ship but increase his stake instead.
Anyway, look out for his next results announcement or good report related to US ban..
Akan datang...

It is not easy for new players to come in esp MCOs are still in place and workers are tight. Factories will take longer to build and be certified as well.
Analysts said huge supplies coming but really??

The fact is demand will be still v high. Pandemic is still raging and Europe is battling another wave of D variant.
South America, Asia and Africa are not out of the wood.
Just look us, still kept at home, our neighbours in Thailand, Indo, Vietnam etc etc fighting fire..


@Ular
TSL rated 4 still, almost dropped to 3.
But i think he deserve at least a 6 lah .. lol

@ witan,
Between Dato Lee and TSL and you, who know the business better?
You?

Those naysayers have reached their TP 4rm,
what next?
They will change tune as well?
Time is near...
Lets all unite :)

Analysts will start to reverse position and report higher TP.
Time is near...
Bullets waiting ;)

RSS shown shorts started to cover.
Time is near...

@Witan. Shorts are starting to cover imo.
Selling drying as vol low.
Refer to RSS report, now 241m compared to 249m last week.
Time is NEAR..

Not the time to sell.
Time to open war chest..

Shorts i am still waiting for you to cover...
Games on.
Monitoring RSS faithfully.
Buying BIG when time comes.

I am waiting.
So far holding my shares.
Keeping my bullets.
Buying BIG when the time come...

Shorts, you need to cover.. i can wait for u. lol

@Ular Maybe you email him since he is not so stock mkt savy.
You tell him to place 8m shares wall lah..
Thank u!

TSL are you checking the forum and feeling the ground?
If you are, put up 4m shares wall asap!
Many supporters behind you...

Yes, Tan Sri should do the million shares block and move the price slowly. When the slow push up gather momentumn shorts have no choice but to cover.

LONDON (REUTERS) - Nearly 2,000 people who live in Scotland have attended Euro 2020 events while infectious with Covid-19, Public Health Scotland said on Wednesday June 30.

The United Kingdom recorded a further 26,068 cases of Covid-19 on Wednesday, the highest daily figure since Jan 29 and sending the seven-day tally up 70 per cent on the week before, official data showed.

Somebody park 4m Supermax shares at 3.3 to stop the drop..
Tan Sri can park 4m shares here at 4.1 to push it up slowly.
Do it everyday..

Still waiting for the BIG BUY..
For who who shouted low TP, what is your move when it come?
You will buy up? or what?
If you buy then, TP move up?
If you dun buy, then you talk talk only?
Interesting...

LONDON 30June 2021 — The coronavirus delta variant first discovered in India has now spread around the world, prompting further waves of infections in countries like the U.K.

Now, there are increasing signs that mainland Europe is seeing a sharp rise in cases too.

The EU is certainly worried about the spread of the highly infectious delta variant which evidence suggests is around 60% more transmissible than the alpha variant first found in England, causes more hospitalizations and slightly reduces the efficacy of vaccines.

My short term TP is 6.
Long term TP is 11.

With Sri Tan And EPF buying to support at current price..
Soon retailers go in after a reversal is captured in charts..
Gap up high will follow..
Waiting with bullets.

Malaysia control more than 65% of world gloves supplies.
Demands will be elevated due to pandemic and are growing yoy going forward.
Really dun understand why ppl are selling down in fear..
US investors must be laughing.
Maybe JB Morgan buying ADR quietly..... lol

I am waiting to buy BIG. NO contra.

Sense gap up coming..
Shorts are readying to move back.
USA ADR has spoken!!
Dun contra now.
Just wait and see.