UALA LUMPUR (Oct 10): Careplus Group Bhd is spending RM24 million to gain full control of its loss-making subsidiary Careglove Global Sdn Bhd, which makes rubber gloves for the Brazilian market.

In a filing with the stock exchnage today, Careplus said it is buying the remaining 49.99% stake in Careglove from AJJ Holding Inc, whose ultimate shareholder is Renato Silveira Joiozo.

Under the sale agreement, Careglove must declare RM23.41 million as dividends to its shareholders, of which the total dividend payable to AJJ will be RM11.7 million.

Careplus said the acquisition — which it plans to satisfy via internally-generated funds — represents an opportunity for the group to gain full control of Careglove's overall operations and future business direction.

This includes the expansion of the unit’s business into other markets outside Brazil, it added.

Careplus currently owns a 50.0002% equity interest in Careglove, a manufacturer, distributor, importer and exporter of all types of handgloves.

The unit registered a net profit of RM10.39 million for the financial year ended Dec 31, 2018 (FY18), compared with RM9.51 million in FY17.

However, as at July 31, 2019, it recorded an unaudited seven-month net loss of RM743,000 as a result of increase in cost of sales from higher natural rubber latex prices, higher energy and labour costs incurred, besides lower selling prices due to competition in the powdered gloves segment in the Brazillian market.

Careplus itself is a loss-making company as well. For the first half of FY19, the group turned in a net loss of RM1.6 million against higher revenue of RM172 million, attributable to higher material and labour costs.

Careplus said upon completion of the acquisition, its management intends to expand the group’s business presence overseas, targeting other developed markets via future collaboration with other major players in the glove supply industry.

“The management will also be implementing measures to increase its overall utilisation capacity by adding production lines in order to cater for the anticipated increase in demand for its products,” it said.

Barring unforeseen circumstances, the board expects the proposed acquisition — subject to shareholders’ approval — to be completed by the first quarter of 2020.

Shares in Careplus settled unchanged today at 14 sen, bringing it a market capitalisation of RM74.39 million.

Post removed.Why?

Check annual report 2019

This report is a duplicate of the one for Power Root.
Investor.com / AmInvest, please wake up.

There has been 3 bonus issues since 2010. Those who were holding 1 share then would have seen it multiplied to 5 shares now. And last year there was a 1:65 dividend share, which is also a form of mini bonus share.
Instead of another bonus issue which will further dilute an already massive share spread, I would prefer a higher share price and a dividend payment (cash or share).

Half the people here are pessimists (sell) and half are optimists(buy).
That's why prices fluctuate up and down in the stock market.

Current scenario, keep in view RM 2.90 -3.00, TP 2.
Could be next week, next month or two months time.
Who knows.

Technically, it's a share split. The boost is in the psychology of investors' herd instinct of having freebies.

Managed to collect some at RM 2.340.
Tomorrow another long day ahead.

I believe the price will yo yo between RM 2.20 - 2.60 in the next few weeks.

TP 1 - RM 2.50. Almost there.
Wait for Quarterly report before another upside.
More healthy to take a breather.

Hari Raya coming. She needs money for expenses. My guess.

Sea of red everywhere. Supermax and comfort very green today.

This counter is a hidden gem. Despite not achieving it's profit targets since its listing, it has never made any loss. At the present price and it's cash holding, it's still very much under valued.

Mazda model sales Oct'19 to Dec'19 - 2705 units (1.7% of national sales)
Mazda model sales Jan'20 to Feb'20 - 2202 units (2.7% of national sales)

No figures yet on March'20 sales. I would expect it to be impacted from the MCO as well as April's.
However, one can see that Bermaz managed to increase their sales quantum by 1% due to introduction of new models and local funds are buying up this share.
Please make your own due diligence on this counter.

Philip, I have never used margin financing but now have a better understanding on how it should be used. I would summarized to say, this story is also a part of your share investment journey. Thanks for sharing.

Gloves factories cant cope with demand. Upside on glove counters for the next 1 to 2 months - at least 50% increase in prices on undervalued companies like Supermax, Comfort.

Green green grass of home.

"Posted by KingOfStock > Apr 12, 2020 11:12 AM | Report Abuse
My sole purpose of writing this piece is not to recommend you to buy or sell your glove companies’ shares. I just want you to understand the risk of buying shares with high P/E ratio...
supermx lowest PE among 4 big brothers... KYY going to buy... monday limit up liao..."

Exactly, our old uncle didn't mention this share, which was one of his earliest darlings. My spider sense tells me he is on to this. Time will tell..

Star would need to infuse two important elements that is the most important-
1. Inspirational Leadership to push the company
2. Quality staff to infuse new ideas and products.
They already have the hardware , but where is the software.?
Star being MCA owned, I don't think they will release their grip on it so easily. My personal opinion is, Star will eventually be cannibalized for it's assets or incorporated into MCA's other political interests.

There's no 'one fits all' method to share investment. Even Buffett has his gruesome picks. Learn from the best gurus but make your own choices.
Our KLCI has it's gems. We just need to identify the needles from the haystack. What looks like straws today may be platinum needles in 5 years time.

AA's billion ringgit savings wont last long when their planes are not flying and they have bills to pay

After reading Koon YY's ( Tan Sri or whatever) many articles through the years, I just need to say my two penny piece on the man and his trading habits. He made his millions from his method that has stood him well. Pump it ( make sure the public knows it ) and when he has no need for it later ( dump without any sentiments whatsoever). This may have worked previously when many growing companies ( Lillhen, Supermax) were just starting out but not anymore when our economy now is hardly growing and the small technology based manufacturers are not fundamentally strong and seems to be favored by fast money traders.
His god of share investment reputation is a myth. No one would place all his money on one company when there are so many other counters that deserve attention. When the price of Dayang reached RM 3,00 at one point a wise man would have liquidated part of the holding to realize gain but not him. Please do not blame him for any losses one made, he is just an ordinary trader and any decision to buy or sell is one's own.

Its down because EPF is dumping the share.

Mega doses of vitamin has not been Proven to protect any flu infection. The right dosage, however may help in improving general health. Many articles from health publications have highlighted this issue. Thanks.

Jackson, need to look at the general big picture. Oil price, Dow, Covid 19 etc. The prices will follow the trend set by these elements. However, I think Mah Sing has an intrinsit value at least of RM 1.00.
I bought it at RM 0.75 last year. When you posted your huge purchases recently I follow your move and bought more at RM 0.37 and I have to say it's rewarding so far. As for buying more, my personal opinion is it's safe for below RM 0.50. But ultimately, it's your call. Regards.

NTA is RM 1.90, still making decent profits. RM 1.60 is a safe buy.

This covid 19 episode will be worse than anything AA has experienced before. If it last another 3 months it's piggy bank would have all but evaporated. It's price would probably fall to RM 0.50 or lower.

In 2015, A Asia's price has gone done even lower - RM 0.50, I think.
Moreover it's tangible assets are worth above RM 1.00. People are willing to bet this episode will be over in due course.

When one is in this market, its not always sugar and spice. Have to taste bitter sometimes. Guess some people are not meant to be in this industry.

Sold some at RM 1.80 today.
Will buy back on weakness.

The readers can make their judgement on the clear minded and the emotional.
I am now dipping my feet in on this counter. At RM 0.89 it's worth a try.

'I withdraw all my FD and load on the below stocks on 19/3/2020.
I bought all Oil and Gas Maintenance player stocks on 19/3/2020, the same week I suffered 10% to 20% losses.
I sold all today, I managed to cover all my losses in 2020.
I am now in profit on Jaks now'

Wow, You made a very astute judgement call.
But it could have gone south too.
Anyway, I salute your brave decision.

Light shining at the end of the tunnel. Russia and Saudi will talk and China energy surges.

Hi Mr. Calvin,
I think this is your most interesting article certainly in a long while.
Thanks for posting.

LGE was stupid and arrogant to be kedekut and dont spend govt's budget like its his father's money but its easy to blame him. DAP is a paper tiger and always the scapegoat. This is a reality.

This stock is practically a monopoly. To me, RM 11.80 is a steal.

Technically, buyers on ex-date will not get the declared dividend.

Just hold it for a year or so. Wait for better Q reports. In the meantime they are paying decent dividends.

0.60 ct ? Hold your horses. 0.90 should be the nest support.

Mah Sing at RM 0.305 was at floor base, doubt it can go lower than that.
In the next few months, probably looking at RM 0.60 if the stock market improves.

Latuk Rick. If I aint wrong you cant wait for the day Jibby is resurrected.

Director was selling down the stock before quarterly report was out.

Refreshing to hear that. Better to prepare some silver bullets in the meantime and pluck a few gems here and there.

Are we on the beginning of an uptrend after more than 2 years of bearish trend and crash. Or will things get worse with the multitude of bad news. Will the US trillion dollar and our 250 billion ringgit stimulus packages stimulate our stock market. That's the question.

After all is said and done, this counter will not go back to RM3.00 in the immediate future. RM 1.90 may be a more realistic figure, and that is provided the next Q result is not worst than the previous.

Hi Calvin,
I have been following the postings here for some time. There are many sincere postings on general investment topics and stocks. I think you are also a veteran in this aspect. However, lately many of the forum members have turned increasingly hostile on you. I have no idea why you are still promoting NFCB companies at this juncture when the environment is so negative. Perhaps a change of topics would be better. Regards.

Last Q profit down 90% yoy though revenue ok. Something's going on.

Any idea why the big shareholder is throwing?

The bottom will come when prices are so low that investors will lose confidence in the market. Only those with experience and bullets will pick up the pieces. I think the bottom is still to come. Last friday could be a false hope.