Posted by drkelvin20 > Dec 31, 2020 11:28 AM | Report Abuse
just some neutral opinion, my own opinion, you can ignore if you do not agree:
The glove counters currently are still way too pricey compared to PreCovid level, it is a crystal clear and rock solid that the glove counters do not have that kind of sustainable profit/revenue to support even the current depreciating share price...The gloves selling prices are still high at the moment, if you know how the industry business and marketing operate, or just talk to someone in this industry you will know the glove selling price will be back to normal, or some higher than PreCovid level. But definately selling price cannot remain at this level.
In my opinion, there is a lot of downside for supermx and top glove, and other glove counter. considering 1:1 bonus share issue and 1:2 bonus share issue, and even consider a slighty higher glove selling price than PreCovid level, I would consider a good buy for supermx at ~rm 2, and top glove around ~rm3.
Mayb some of you may laugh off this low target price and think it is too far off from current share price. BUt if you recall supermx was rm 9++, top glove was rm 9++ after bonus share issuance, now dropped to rm 6+ respectively, then further drop can happen slowly.
The fact that 2020 Financial year super bull profits for glove counters, it will present a high pressure to the glove companies to sustain the super bull profit after the pandemic is getting over. Say, the financial quarter at the end of 2021, or beginning of 2022. These year end 2021 and early 2022 on wards, financial report, when compared to 2020 whole year revenue and profit. It will be inevitable that the performance will show a huge drop. and by then, in my opinion, the glove counters will drop to thier sustainable. And only then, for me, it is a very good buy, especially top glove with high CAGR all these years.
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Posted by jonsuk67 > 2020-12-29 14:09 | Report Abuse
Increase of 30% in Q2? That's good.