The thing is China Intco rises almost 7% to very close to ATH. This is only Malaysia's problem, unfortunately seemed that our market is less mature than China's.

@biliskecil, an example for share price to back to fundamental. Spmx shares back in 2001 was around RM0.02 and now its RM8.29, Topglove was RM0.02 back then and now Rm6.60. This is the power of fundamental investment, all it takes is long term holding and when the price does not reflect the true long term value at the time of entry.

@biliskecil, you've mentioned you do not believe in structural change in gloves demand, I respect that because everyone is entitled to their own opinion and beliefs. But the structural change narrative is not from sifu FTS nor any other sifu's mouth. It's from SPMX/Harta/Topgloves QR business prospect information and their analyst briefing report, you may wish to do more reading on this. I understood you have some worry or disbelief in this, but I think the bosses have better market understanding than anyone of us, including you and me. I take an example of SPMX, if you read 2009/10 QR from them (which their share price was up 1000% during H1N1 pandemic), no such strong phrases were used in their QR, such as structural change, exponential growth etc. With this you know something is brewing.

@biliskecil, i'm not sure if you had read thoroughly sifu FTS's comments since April. He had started the call of SPMX before the rally with facts even much earlier than the IB. For someone who's able to see things before the IB experts not qualified as sifu, then who else would?

@Stockisntfun, what you mention is short term. Long term you'll need FA to hold up the share price.

Vulture123, everyone hopes vaccines to end the pandemic. But we invest in gloves because the facts showing that the pandemic will not end any time soon, at least for another year. And gloves demand will not back to pre-Covid times. The most element of vaccines is not only it's efficiency, but safety. If problems are found later in fastracked vaccines after inoculations in millions of people, that will be another bigger disaster than the pandemic itself. If will render distrust in vaccines and increase the rejection of vaccines in the future by many. And diseases not seen for decades will return. So lets hope for a safe and efficient vaccine, not the one withouy solid proof of safety which could bring even more devastating issues to mankind. If you kinda understand this.

@glovefinish, yes it's all about sentiment for short term, as being said the stock market is a voting machine in short term. for example O&G, oil price could be up and could be down, it's hard to predict, the forecast could be wrong. but still when short term oil price is up, sentiment is there, funds will move there, they disregard that oil is at long term down trend because the consumption will be much lower when all cars go electrified rather than combustion.

If everyone acts like casino player, it's better you not be one, because you'll never win in a casino game for long term.

@safetyfirst, if nobody sees fundamental, that's the best time to collect.

Not to worry too much, it's just short term sentiment, business as usual and still printing money everyday when safetyfirst is yelling. China Intco still not far from ATH as well, it's a good indicator.

The gloves price in the US is madness. Even for latex gloves it's around USD230/1000pcs. https://us.vwr.com/store/supplier/id/0000032452/supermax-healthcare-inc
If gloves is seriously so easily to ramp up production, why is it still at such high price after 8 months into the Pandemic?

The music for gloves has not ended yet. It just paused for a moment to welcome the honourable guest, the vaccine. Once the hype for the guest is over, the music will restart again.

@ToneeFa Really hope so.

@Agjl bro, it's ok to congratulate him even we don't know whether he bought or not, for this time. because judging the way he plays with stock, if he could end up breakeven at the end of the day is considered lucky already. because 90% retailers lost money that way.

@safetyfirst, you won on Bintai, that's good for you, congratulations. But that's just like striking toto, this time you are lucky doesn't mean you will be lucky all the time.

@EdwinYap86 I think you've forgotten the time when IB and FM chasing to raise TP back in May. They were so much behind when the share price broke new high. They are not God, can't be right all the time.

Some analysts give a lower expectation of Spmx's ASP moving forward compared to its peers like Harta & Kossan, which I found very puzzling and weird. Spmx management already indicated the ASP will continue to rise 3-5% mom, whereas Harta is rising 45% qoq. From percentage, it seemed Harta is increasing more. But in fact the rise is calculated on different base value. Harta's 45% qoq means around 13% mom , but the base could be much lower at USD60 (OEM), translating to USD8-10 increase every month. Where as Spmx calculated 5% based on USD180 (OBM) which in turns gives an increase of USD9-10 every month. There is not much difference between the two actually. Spmx seriously needs a revaluation to get closer to Harta's PE.

007007, Supermax's order is fully filled up for the entire 2021, and they can transfer the raw material cost to end user especially for spot orders. The impact to them is minimal. Further more, hike in butadiene is a good deterrent to newcomers who are going to suffer most as they do not have good bargaining power and force to purchase at high price. it's going to be a plus point to the big 4 as well.

@sweetchocoalates, I seriously hope so. just don't understand why is Harta and Kossan still enjoying high PE while Supermax is being suppressed like that.

One thing I cannot understand is why until now the market still cannot see the future of Supermax? Why is it valuing Supermax so much lower than Harta and Kossan which are so much laggard in their earnings, and also compared to much better Supermax earning prospect in the future.

Don't understand why the media hate gloves counters so much, bashing gloves almost everyday.

They are earning real money, real cash. Not just profit on paper. The market will finally realize this and give them the valuation they deserve.

Gloves counters are not on downtrend. It is the series of events that created the negative sentiment that suppressed them temporarily. Business is still robust. Share price will thrive again once all these sentiments go away.

Actually all the good news coming out today, was already mentioned by Freetospeak sifu and the CiA team. But many don't wanna listen......

FM once again stressed that no windfall tax because it will convey a wrong message to investors. https://www.malaymail.com/news/malaysia/2020/11/28/windfall-tax-will-send-wrong-signal-to-investors-says-tengku-zafrul/1927036

No, most of the gloves are non-sterile, especially examination gloves. On those surgical gloves are sterilized.

@habisglove, 1 year later even if ASP start normalizing, capacity increase will compensate the difference and sustain the profit. Market may not have seen this coming just yet.

@glovefinish ultimately, stock market will only recognize those company which earn money. Profit is the only key thing that will drive share price ultimately.

@Come, FTS sifu was just expressing in a sacarstic way....

Juat a snap in fingers Warren Buffet could easily bought the whole company. Haha.

When the market finally realized the earning is sustainable at least for next few years, the traditional PE of 20-30 of next 1-2 quarters' earning will still be applicable.

New capacities will find ir hard to secure the much needed raw material, butadiene.

Looks like when there's enough sell volume, they will suddenly take up all tickets, then rest and wait for the next cycle.

so many ill intent comments here so happy with gloves factories down. You know how many lives will be gone because of gloves shortage? Please mind your words if not karma will find your way.

@Lclau source please.

@EdwinYap please give detailed analysis of why you think RM5 is fair value? Please justify your claims, if you call sell, investors need to know why. Please be responsible.

@Taipan bro, well said. Share price will ultimately go in line with earnings. SPMX earning is solid.

Market is irrational sometimes, companies like TG & SPMX which could bring in billions of profit in the next 2 years are being dumped. A correction like this is the best timing for mature investors to reap the best return in the future. If these companies were good for nothing they wouldn't have made it the past 20 years till current status.

Thailand's investors seemed to be more matured than Malaysian's. Sri Trang Gloves up close to 6% today albeit vaccine news.

Vaccine is already launched in Russia 2 months ago, but cases there still surge to ATH.

@xdssaq when vaccine is finally commercialized, it'll be a boost to glove stock.
Because it's still not confirmed, the rumours creates a lot of speculations.
When vaccine launch is confirmed, the market settles down and will return to gloves again, as administration of vaccines requires gloves and shortage will be even worst then.

Everyone is hopeful for a real working vaccine to return to normal life, not a vaccine news for temporarily hype.
An incompletely tested vaccine may cost even more lives, I believe that's not what you wanna see.
Will you put your family at risk to take a jab which is not 100% proven to be safe and effective?

By the way, your statement of "A GOOD STOCK WILL NEVER FALL MORE THAN 50% FROM PEAK..." is seriously flawed, unless you think Public Bank/ Carlsberg etc are not good counters, they did fall from peak to a low of >50%.

@Arsenewenger8383 if big funds really want to throw, it's already RM2-3 by now. No need to wait till weeks or months later.

@Arsenewenger8383, how do you explain when vaccines were out in the past few outbreaks, the share price continued moving uptrend more than 6 months until the pandemic was declared ended? Fund is forever moving here and there, it comes and goes. So if it's not here now doesn't mean it will not come back later on.

Believe it or not, history is going to repeat itself, after SARS, H1N1, MERS, EBOLA and now, without exception. As this time, the scale of pandemic is unprecedented.

Vaccine news is overhype, and unfortunately the infection rate is not going to come down anytime soon. And in the next 3 months after the vaccine news cases are still hitting its ath, investors will start to look back and realized the tremendous growth of gloves companies and there's nothing that could hold them back.

When SPMX was moving up, these IB's analysts couldn't predict properly as well and kept changing the target price. Now there's no reason to believe their views in full as well. Trust your own studies and your guts.

https://www.bloomberg.com/opinion/articles/2020-11-10/fixing-the-ppe-shortage-should-top-biden-s-to-do-list

Despite all speculation on vaccines or end of pandemic narratives, the real problem still persists and still gloves shortage is still far worst.

The market has made a mistake, like it always did. There's no way it values Supermax at 18PE, the lowest among all gloves counters, when it's EPS is the highest among all.

If you purchase a glove factory, you will be able to produce and sell gloves in a shortest possible time. But if you plan to build a production, it will take months, or even more than a year without the projected revenue.

https://us.vwr.com/store/catalog/product.jsp?product_id=13688249
Supermax Aurelia gloves up 9% against Oct selling price. Latex gloves up by almost 3 folds.
Nonsign of ASP slowing down.