http://www.definitemarket.com/blog/back-on-monday

Monday read perhaps

vroom vroom tmr

4th of July is this weekend. DT will not let DJI turn red. Have a good friding tmr everyone.

i heard a little bird chirp that they are linking up with one of China's big boy e-commerce.

https://www.definitemarket.com/blog/wednesday-analysis

hmm... an analysis for us to ponder upon.

at 0.08, everyone says it's over. then it went up to 0.15. now come back down, wonder if it will be bang up again?

it doesnt mean that the credit line is gone, is it? 14m working capital doesnt mean it cannot be spent to buy a factory?

the funds to purchase is available (not why would they want to pull through with this without doing any financial feasibility study)

point 1-2, yes, i concede, its pure speculations. your point from 3-5 can be invalid without any concrete evidence. point 6-8 is a matter of your opinion, unsubstantiated as much as AT claims.

i guess on paper, AT does have the financial capabilities to acquire this factory. speculative counter it maybe, but so is Adventa (no glove exposure?), K1 (cotton buds up our nostril and down our throat) and many more. certainly aint fundamentally sound i would say. Thats why its 0.11?

i guess as much as that no one knows if the timelines AT claims or the ones youve mentioned are correct. perhaps, both parties are speculating this too?

for 0.11, you cant expect TG kind of fundamentals, but you can expect more upside here.


IN REPLY TO:-

This is one of the few Co had done 3 Private placements and 2 Right Issue exercise since FY 2016 and still cannot turnaround the Co into profitable position.

Far too many Issue of Shares thru Private Placements (PP) in small quantity and the two Right Issues in recent years with no positive impact on the result due to poor execution. This also reflect on the inability of the Co to raise finance thru the banking system due to probably unfavourable credit rating by banks otherwise you would not raise small amount by PP.

Recently the Co just completed it Right issue exercise on 22 May and raised RM34.7 mil for the purposed stated attached.

The Co share price from 13 April to 22 May on completion of the right issue was from 4 Sen to 5 Sen.

The share price started to trend up after completion of the right issue on 22 May to a high of 19 Sen in 11 June before retracing to 8 Sen on 26 June and closed at 11 Sen.

The announcement of acquiring Pearl Glove and venturing into medical glove industry to me is just another THEMATIC PLAY to GORENG up the share price. Investors need to ask the following questions on the press release on acquisition of Pearl Glove dated 26 June and get convince before you take position, otherwise sell your AT and take profit

1. Has AT turnaround to be profitable? No. I believe it will be reporting a loss for Q4 31 March.

2. Any positive development in AT business generating quantum leap in profit causing its share price to move up from 4 Sen in April to 19 Sen and now at 11 Sen? No

3. Has AT got the cash fund to acquire Pear Glove (manufacturing of industrial glove)? No from the Co Balance Sheet at 31 Dec 2019.

4. Will the Co bankers finance the acquisition? The answer is NO as it is equity financing and there is no visible take off cash inflow for repayment.

The current AT Balance Sheet is already stretched without the right issue and the Co had to do 3 small quantum of PP and 2 right issues within the last 4 years since 2016 make me conclude that AT had hard time raising banking facilities then.

5. Can the Co use the right issued fund for acquisition? No unless it goes back to the authority to change the purpose of utilisation which do not goes well with SC

6. Does it make business sense to acquire an industrial glove player and gradually convert to medical glove business? No business sense as industrial glove player do not have the skill set for manufacturing medical glove which is completely different industry

7. From KLSE Screener: ATS estimated it would require RM180mil for the expansion.
"As a start, the Group intends to allocate approximately RM36mil to install and commission a total of 4 new production lines for the manufacture of medical grade nitrile examination within the next 4 months upon completion of the acquisition," it said. The four new lines will have a capacity to produce 600 million pieces a year.

Can you commission a medical glove production line in 4 mths? Guarantee NO.
It could take 6 mths to 9 mths to set up a line with trial run to commission it. The Co also need Medical Certification Approval after commissioning of production. The Audit by Sirim or International Certifying Body may take 2 to 3 mths to qualify.

8. It would take more than 1 years before u can see medical glove coming out from Pearl Glove “oven” and by then Covid 19 could be over.

9. AT said the expansion plans will be funded via a combination of internal generated funds, bank borrowings and/or fund raising exercises to be determined.
I do not see the Co has internal fund to stomach the acquisition. Bank WILL CERTAINLY RELUCTANT to lend to finance the acquisition. Do not tell me AT is going for another round of right issue or PP??????

I will not buy into AT and be a sucker unless I am in AT just for the Goreng Goreng and play with the market operators.

If I am holding AT, I will take my profit by selling AT

I think I'll buy some on the opening bell.

https://www.definitemarket.com/blog/looking-forwardmonday

wow, is the author here?

If Pearl Glove was listed on the market, taking account TG price and the rest like comfort, carepls, adventa etc..

What would their share price be? Definitely not 150mm marketcap rite?

Correct me if I'm wrong, I don't think gloves are just highlighted for medical usage only. F&B, service industries etc too need them. even sweeping the floor is needed with the current SOP. And TG too isn't the biggest Nitrile/Surgical gloves factory rite? And they are yet the No.1?

Just my two cents thoughts though.

All the best AT.

Everyone kena conned. The market makers pushed the shares down to scare everyone to collect more. Next round looks like the push is going all the way. Major shareholder sitting on huge profit also did not sell all. Made a mistake selling my bigger lots at 0.105 and still holding a small bit.

I came across this blog and it was too late. I let the bugger chunk go.

https://www.definitemarket.com/blog/friday-close

this blog spotted it before closing.

Well done.

https://www.definitemarket.com/blog/Friday-Morning

read this just now...

looks like a soft start. engine belum start

https://www.definitemarket.com/blog/sunday-afternoon-list-keeping

base on this article, it may just run today.

thanks for the tip Piratebilis. Better run tomorrow at Franklim1989's TP

my gut feeling tells me it will head north tomorrow. just not sure up north to Danok, Bangkok or Chiangrai. But definitely not Laos or Myanmar.

yes, even the chart shows its indeed very² bullish.

You guys should do some research. This is the first stage of approvals.

They announced the power of attorney in May and subsequently updated with the first stage approval in June. In order to make this commercial they need the special access license, which is the next news.

Perhaps this has more than just a trade, especially with the second wave.

With Private Placement coming it looks like major investment is to be channelled into the test kits.

Furthermore these are PCR test kits. Not rapid test kits like the others. Our DG has specifically said PCR test kits are the correct ones.

Time to weed out the fluff guys. This is the real deal.

BILLC

i have to strongly agree with you on your statement. But once a thief, it doesnt mean he'll remain a thief. he could have enterprised himself and upgrade to being stealing 1bil and if caught, returning 450m. and if not, keep it all. haha. just kidding. See you half way up later MingGoon.

came across this.

https://www.definitemarket.com/blog/wednesday-focus

Love2Win

i guess you know whats going to happen. chill and sit tight. for the weekend will definitely be fruitful.

https://www.definitemarket.com/blog/between-the-lines

googled and got this too.

https://www.klsescreener.com/v2/news/view/685673

already got it rite?

https://nypost.com/2020/05/20/china-placing-massive-ppe-orders-sparking-fear-of-another-coronavirus-wave/

???

DK66, please add. thanks.