59 million trading volume but only a 3sen (1.78%) drop in price?
Oh dear me, prices are crashing hard... very very hard. On Sept 1st, first thing to do is to queue and sell all my holdings @ RM1.20, if I am very lucky.... Then I will buy back @ RM0.90 or maybe even lower.

Buy low, sell high, or it is the other way round? Anyway I untung besar right, right?!
;)

@fortunefire That one really up to you. My gut tells me that Harta may fall lower, maybe approaching RM1.20 in a few months if JPM target price are right. If you worry about not buying at the lowest, then buy in batches like I do, few lots at a time.

I am also interested in the reports from AGM.

While glove counters are cheap, there may be a shift in the glove industry. Before the pandemic, while profit margins are small, Malaysian glove industry grows at a respectable rate. So most investors are willing to pay more, especially Harta because of its highly profitable nitrile. After the pandemic, there are lot more producers from China and other SE Asian countries, thus we are not sure if Malaysian glove manufacturers can achieve a steady growth just like in the past, and thus doesn't deserve the price premium.

Personally I am somewhat optimistic with the glove industry, and continue to accumulate as long as price falls (which may happen next quarter). But I am willing to cut my losses if our companies show no signs of recovery in the coming years. With a huge drop in prices, glove is currently less than 10% of my stock portfolio, so I am willing to take that gamble, lol!

@YourQuirkyWays29, hope to see you around too. At such price, most glove holders are laughed at for their "loser" opinion. I am a loser too, but that's the price I've gotta pay for becoming an amateur bottom fisher.

YourQuirkyWays29 When a counter's share price lost it's sanity, so does majority of the people commenting. Imma stay away from here where there's no constructive info to preserve my own sanity. Bang_miskin & Cerubic, hope to see you around when we have better days.

Don't care whether operator press or school of ikan bilis cut losses, please sell more and press down price cukup. I ready more money for next entry.
We can do better than TP of RM1.20, how about below RM1? Malaysia boleh lah!

Imagine buying 1 nasi goreng for 5 units of Harta, I'll keep my Harta and goreng my own nasi, t'ma kasih.

TP of 1.20? Fine with me. Rare opportunity to buy a good company at such price.
Also keeping an eye on Kossan. Ready to enter at around RM0.90

@ccpool thinking the same thing. When Harta is delisted from KLCI.

Missed my chance to buy below RM1, hope when funds come, got chance to buy.

@terence775 Yes you are right. Despite higher net profit, revenue was significantly lower (from 408k to 300k). I just looked at net profit alone, lol!

Still there's no rush to buy Harta. Might be cheaper next quarter.

I don't see how Harta share buybacks can help the company.
Keep in mind that before the pandemic, Harta conducta share split every two years to keep unit price reasonable. However the split did not occur in 2021 since price are expected to downtrend (imagine Harta at RM0.80 today if the share split had occured!)
Supermax QR yesterday was better than quarter. Hope Topglove QR is better than the last, so we can see a recovery with the glove industry. By that time market force (goreng) will push prices up, no need Kuan's cash to do the trick!

Current situation reminded me of buying Genting shares during the middle of the pandemic (mid 2020). In retrospect Genting at RM3 is cheap, but without a vaccine, who knows when the pandemic will end? Very few dare to buy despite the cheap price. When will the problem of high cost and low ASP will end? Who knows...

Glove industry is uncertain and bleak in the medium term. So don't borrow money to buy this counter.
Sure it is cheap now, but it can be cheaper in the next quarter.
Keep in mind Harta still haven't paid their 3.5 sen dividend. Still got room to fall.
If you want more certainty, wait for Topglove next QR, then decide if you want to buy.
You can buy with money you can afford to lose, but be prepared to hold for at least a year or two for any potential gain.

I also see lots of people commenting on China's economy and how they will out-compete Malaysian glove manufacturers. In terms of cost, wages and raw-materials are not necessarily cheaper in China. However they may have an edge in terms of economies of scales (bigger companies can produce at a lower cost per unit) and export subsidies (direct or indirect) from the government. Yes we should be concern with our competitors, but keep in mind that they are also dealing with higher cost and lower selling price.

I can't predict the state of the glove industry three years from now. I hope we could maintain an edge in terms of profit. So while we may be small, we can still make money.

The low share price reflects the great uncertainty in the glove industry. Which company will kena squeeze cukup2 by higher cost and lower ASP? Can company still maintain some profit or go under? Under these uncertainties, I can see why many investment bank recommend to hold or sell, the risk is not worth it. But of the top 4 I believe Harta and Kossan are best candidates to overcome these uncertainties. And current prices are cheap, too cheap IMO. Keep in mind that prices may continue to fall, so don't buy with money you don't have.

Of course many people think that glove is a dead-end industry. I can understand that. They can sell while I continue to buy. RM1.80 is still cheap. To those naysayers, please sell more, I want to buy it cheaper =)

Bigger isn't always better. Topglove is bigger than Harta, but Harta has a higher profit margin and thus is more expensive (higher P/E ratio). Yes we should be concerned with China production capability (e.g. Intco), but as long as we can hold our ground and make a decent profit, we're all good.

While Harta price may fall in near future, I think it's crazy cheap. Just my 2 cents

Don't be too happy with a small afternoon rebound. I rode the roller-coaster from RM10 (April 2021) till today. Made some profit, but mostly (paper) losses along the way.

I can understand the mindset of a short-term trader. Quick in, quick out, see money take money, pocket money still money. But if you're thinking that we have reached the bottom, think again. The glove industry is still facing some selling pressure, and we still haven't received our 3.5sen dividend. IMHO, there may be some room to fall.

What to do if you want to invest long term? Don't worry about price too much. Ask yourself whether if the company is undervalued. If it is, then invest, but don't expect a good profit anytime soon. If you think glove is a dead-end industry then don't touch it, simple as that.

I will come back with more gambling chips when Harta reached RM1. I don't judi in Genting, but gambling in Kasino-de-Bursa is kinda fun. At this point, it is more consumption than investment, lol!

Malaysia is a developing country not only in its economy, it also has a relatively dysfunctional political and governance system. Unfortunately BN/UMNO thrives in such semi-dysfunctional system. As they say, corruption is inefficient, but it "greases the wheels". It is used to bypass unreasonable bureaucratic rules, and everyone benefits, so why change this dysfunctional system.

In order to be better the country needs to pivot towards better governance. Reform political system to reflect voter's interest. Strengthen rule-based judiciary system. Streamline rules and laws to be more efficient, in other words be more like our Singaporean neighbour. We can do better than Singapore by strengthening our press freedom. These are difficult reforms that is going to receive lots of opposition from certain special interest group, but it will be good for our country in the long run.

Unfortunately, we can't even get pass the first barrier: racial politics. So the suggestions I've just posted is just an idealistic pipe-dream, lol!

So despite the political infighting we hear about, BN/UMNO can still thrive in a semi-dysfunctional system. They're expert lah.

Agree with @CharlesT. See money take money, not a bad idea. Who can tell me what the price will be at the end of this year? Not me, lol!

@Cerubic Nobody wants a war, and a Chinese invasion of Taiwan has been on the table for quite a while. Sure Mrs. Pelosi visit heightens the tensions. At the moment, China isn't ready to take Taiwan (militarily speaking). But things may change in 5 to 10 years time. I have colleagues who told me that China can take over Taiwan in 3 days right now. I don't think so....

@Mini2021 Before the pandemic, Harta commands a premium because it can maintain a higher profit margin than the other 3. It's a well-run company. But once Harta loses its competitive edge over the other 3, it may no longer command a premium.
Is it oversold？Yes I think so. If I have extra funds now, I will buy me some more Hartas and some Kossans

@Cerubic at this point I am treating it as gambling, lol. 6 months ago, I thought RM4.30 was the bottom. Just two weeks ago, I don't think it is possible that it will breached below RM2. Who knows, maybe in 3 weeks, we may even visit RM1. Don't forget net profit may be lower the next quarter, and Harta may be off the KLCI in the upcoming review.

But when it approaches RM1, I will be back with more chips on the table. Since I am bilis miskin, why not gamble my way out, lol!

@YourQuirkyWays29 Have been toying with the idea of selling my remaining Harta when it hits below RM3. Decided against it since I don't get back much anyway, not even a year worth of mortgage!

At current price ~RM1.70, I am figuratively throwing chips at the slot machine. If lose I happy, if win, of course happier lah.

China invade Taiwan? That's their goal of CPC since '49. Not going to happen this year, maybe after 2025, more like 2030. They don't have that capability now.

Source: trust me bro.

Also lately have been seeing lots of naysayers here in the glove counters, making fun of glove kaki. Banyak kepoh punya busybodies. Why you care so much? It's our money anyway. Some people like to throw money at slot machines, while others like me like to throw money in glove counters. Like a game of mahjong, some day you win, other day you lose!

Big sharks will always play their game, little ikan bilis just eat the bit and pieces created by sharks.

For those thinking of making a quick profit, there are better counters out there. I am just bottom fishing here (at this price, doesn't take much to buy, lol). In fact price may continue to fall if Harta is removed from KLCI (which is very likely IMO).

So why do I buy? Don't know, don't care. I just like this stock, that's all!

See you guys at RM1!

Hey ho, I am joining the bandwagon. Figured I can put another 5% into my "fixed deposit", lol!

Yup, we are all long term investor here. Mine are still in the freezer, lol!
Harta's current price is fair, may even drop below RM2. This quarter's net profit was below expectation, a sharp drop compared to previous QR. Don't think it will improve anytime soon (2022). So for those interested in buying cheap counters, you might be able to buy it cheaper later. No hurry, why not sit back and lepak2, lol.

NatsukoMishima is a troll. Has been promoting DNex, saying will reached RM1.40 at the end of last year. Look at DNex price now, lol!
In bull market, buy anything also can earn money. Anyone can be a sifu! In bear market you're lucky not to lose you pants, sifu start to say less. Not so easy now eh?

I am no sifu, just a kecik-mecik ikan bilis.

I am very interested with the next QR. If QR is better than expected, if not, then Harta may lose its premium and join the other 3. Let's see.
Kossan is also doing quite well, something to consider other than Harta

@YourQuirkyWays29 Agree. For me this is more like a side-hustle. Some people invest practically all their wealth in the stock market. So any bad decisions can be very costly. For me, if I lose everything in the stock market, at least I still have a house and enough savings for the kids. So I am not too worried :)

YourQuirkyWays29 bang, we don't do this full time. Just make more money from active income to patch back uncertainties. What goes around comes around.

If I were to buy Harta based on emotion. Harta/gloves would be my last pick. Gloves has been down-trending since late 2020. I'd be chasing plantation or petroleum stocks. Now those are hot. We are bottom-fishing here. Although I must admit I was wrong about reading this bottom, lol!

@ccpool well you made the right call. I am not very good with reading charts and with technical analysis. I usually buy and hold. Had I knew a month ago that it will go from RM5 to RM3. I would have sold then and buy back 40% more stocks!

How close are we to the bottom this time?

ccpool Posted by ccpool > 2 months ago

If we don't reclaim 5.39, imo it looks really bad, I will be expecting further downside


@bang_miskin , Called the level when everyone was bullish looking for higher. No surprises there, only emotions

The swift drop in glove prices was a very big surprise to me. Had I knew a month earlier that it would drop this fast, would have sold all and buy back later. Oh well hindsight 20/20, lol.

To me the big drop reflects (1) strong competition in the gloves industry and (2) a very poor overall market sentiment from current events. Factor (1) may persist for another two-five years. There's going to be a major shake-up in the industry, but as long as Harta remained competitive, I am still holding onto this counter. Factor (2) depends on the pace of external events (e.g. Russia-Ukraine conflicts, China's zero-Covid approach). It may take half to two years for things to settle down.

For those holding onto this counter there are two choices. (1) if you don't believe in the gloves industry/sector, best to sell it off sooner than later. Things are not going to get better any time soon, not in a year to two. But for (2), if you still believe in the long-term prospect of the glove industry/sector, then wait for good opportunity to buy. I am very much in camp no 2, but I am not repeating the mistake of "freezing" a large portion of my portfolio onto this counter (no more than 10%). Besides, banking, plantation, and consumer products seem to be doing quite well...

We are living in an interesting time period. Happy investing!

@Tobby since when UMNO is not corrupt? If you ask me they may be less corrupt now, in the digital age, because when bad news comes out, very paiseh la! Nak jage muka lah! Lol! Tapi if I like their policy, I will vote for them. See how lah next year.

Those elites makan rasuah more than us ikan bilises can ever imagine. With so much money and "benefits" on the table, how to avoid such temptations? Let them makan cukup2. Tapi more important is as long as those in power let us live a decent life. Give us sensible and predictable policies, allow us to cari makan, untung sikit, and let our children have a better future. Then I will vote for you in every election regardless of your race or beliefs. Sudah kenyang ah? Don't forget your promise okey?

Most likely is business as usual, similar to the one before the pandemic. I will hold as long as Harta can remain competitive above the others. But if Harta is no longer competitive, or when the glove industry is not longer a growing industry (in terms of growth, gloves used to be second to tech) then bye-bye glove industry, it's nice knowing you.

Was surprised with the sudden increase today, but still did not sell because I am waiting for another bigger news... when will China allow their citizens to travel abroad. When this will happen, nobody knows. Maybe end of this year to maybe next decade, lol!

@Anxious nobody can predict the stock market, but the consensus seems to be that the gloves industry isn't doing too well in the short run. From February to late April, I have been slowly cut my losses by reducing my holdings from 30% to 15% and investing in other industries. Right now gloves is only a little over 10% of my portfolio, because other stocks in my portfolio are doing well, while gloves continue to trend downwards. I kept the remaining 10% (or 15%) in the freezer, and consider adding some if it falls below the RM4 threshold.

I am not in the position to dole out financial advise, but if your portfolio is keeping you up at night, consider taking professional financial advice on adjusting your overall portfolio. Beware of random advises from here, Whatsapp, Facebook and Youtube. Selling Harta was painful for me, realising 35-40% losses during in the process, but my losses were smaller since my other stocks were doing quite well.

Wasn't paying attention to the market for the past three weeks, lol. Despite all the naysayers here I am still holding on to Harta. It will be a rough time for the gloves industry, with demand resuming to normal, but prices of raw materials and wages rising, putting a squeeze on profit margin. Unlike other gloves companies Harta still holds a premium because it can eke out a better margin than the others. This time smaller companies will get squeeze out of existence and larger companies coping with higher costs. For Harta, I am betting on the management more than the immediate gloves market.

Our main competitor (China) is still dealing with the "dynamic-zero" policy. I think we should have a slight advantage in the short run. Since we are back to a new normal, demand and ASP should normalised pretty soon. I don't think glove ASP will fall too much since price are rising across the board. As long as Harta can maintained a decent profit margin, we should see prices slowly moving back to normal (above RM5).

Slow and steady. I put them in the freezer. Can wait for another year or two.

Hartalega still declares 3.5sen dividend. Not bad ah. If one doesn't focus on the large one-sum tax, Harta is doing okay IMO. As long as Harta can maintain good profit margin compared to its competitors, I think it is worth adding more IMO.

Huge trade volume at 2.30pm. many buyers and sellers. If afternoon can hold, then very good lah!

Many people's first response is to sell all, but I am going to let this counter bleed cukup2 for the next few days, then buy.

Yes the result wasn't too bad when compared to last QR.
But RM408mil in tax, wow, speechless... gomen really kuat2 makan.

Yes lower ASP and extra prosperity tax makes things worse. However in the previous QR, utilisation rate was low because lot's of goods were not considered sold due to shipping issues. With these issues resolve, it should help QR just a little bit.

My advice is don't panic. Sure there's lots of bad things happening this year. High inflation from lax monetary response to Covid, Russo-Ukrainian war, China's shoot-itself-in-the-foot "dynamic-zero" Covid policies. Those events have been ongoing for at least two months. The key thing to worry is how Genting performs, either above or below expectation. I am expecting a mixed to below expectation because travelers from a major country are not allowed to travel abroad for vacation. If results are really bad, then I'll move on to another counter. Maybe try my luck with sptoto, lol!

QR should come any moment now... Bracing for bad news.
@Anxious For me Harta is "no eye see" counter. I let it operate in the background. If gain good, if lose never mind. Just redirect focus onto other industries. As long as company's fundamental remains unchanged (decent), still holding onto it.

@Up_again It's a pity that the Chairman did not see it that way. Any rational person knows that zero Covid at this point is unreasonable. But to him China "defeated Covid", while old America and the rest of the world "failed".

Why need to wait before 2024? If the Chairman gets another term, he can go for it in 2026-2027, just in time for the fourth term.
Waging war is about building a legacy. Imagine achieving something even Chairman Mao cannot accomplished! Sure the cost is very high, but money isn't everything for him. Look at all the lock-downs in China just to bring Covid down to zero. Ada logik ke? To him, legacy is more important than the economy.
Is there a way to avoid war? Sure, give him some other ways to build his legacy. Maybe become first country to achieve zero carbon goals, zero common cold, zero LGBT! Even old America cannot achieve these goals, China number 1!

I would like to offer a slightly different view.
First the plantation bull run started two months ago. Prices of many counters already doubled. Will it continue to double? Who knows.
At the same time, Nasdaq has undergone several rounds of price correction. In hindsight should have sold some when it was high in Dec 2021. But at current prices (below 2021 prices) more of a bargain than plantation stocks. Just my opinion.
It is fun to be part of the bull cycle. The glove bull run of 2020 was hard and fast. The tech bull run of 2021 was steadier, but has undergone major correction. How long will the plantation run bull last this time? Another 3 months, 6 months? Who knows.
To newbies, do your own research first. Who are you doing to blame when you kena burn? Ghostbusters? While there are several routes to prosperity, there are far more that can lead you to Holland. Want to visit Amsterdam? I got some tickets :)