Posted by papasmurf > 2021-01-18 06:53 | Report Abuse

I have the same thinking on JPM sinister motive behind the suspiciously biased report, and came to a conclusion similar to your hypothetical story. Whatever happens, one thing is as certain as death and taxes, that Supermax is grossly undervalued.

Posted by calvin69 > 2021-01-18 06:56 | Report Abuse

Would be pretty easy to arrange the finance and take private at current valuations and the huge cash piles

Posted by Jack Khan > 2021-01-18 09:40 | Report Abuse

your theory is outbox but make sense! With Supermax they will secure supplies of gloves for future pandemic! And This is how American business work. Most probably company like 3M, GE etc...

Posted by katsul51 > 2021-01-18 09:56 | Report Abuse

I believe this 100% as JP Morgan did mop up 52 million shares on 28th August 2020 at RM 22.14.

Posted by Goldberg > 2021-01-18 12:03 | Report Abuse

The Biden Administration will make a jaw dropping offer to takeover SUPERMAX.

It will cost them just USD10 bil. JP Morgan will play a pivotal role in this takeover of SUPERMAX.

Here are the clues-

1-The U.S. government wants to be self-sufficient in PPE.
2-JP Morgan used their megaphone to drive down the glove counters without mentioning Supermax in their reports.
3-Supermax planned to manufacture in Delaware.

For the Americans UD10 billion to take over the BEST RUN GLOVE MANUFACTURER IN THE WORLD IS CHICKEN FEED TO THEM.

THE PRICE TAG - RM20-25 .

Posted by Hazzyy > 2021-01-18 12:12 | Report Abuse

Its possible . So attack TG hopefully and indirectly bring down supermax .
Like latexx acquired by Sempirit .

Posted by Hazzyy > 2021-01-18 12:13 | Report Abuse

Better as Malaysia boleh beginning to become Malaysia Tak boleh

Posted by Andre Kua > 2021-01-18 12:42 | Report Abuse

But at Rm40, Supermax shares would be valued at only 25x FY21 forward PE. Not too unreasonable if all the stars align.

Wow... even though you knew the ASP would tank in near future, you would still insist on this statement. Not that I hate any of those glove counters, but some of you guys are just as toxic as the JPM analyst. Pot calling kettle black.

Posted by Lukey_Greek > 2021-01-18 12:59 | Report Abuse

For self sufficient supplies, why pay premium to buy a OBM co comes with distribution channel & brand, when you can get other OEM co with same manufacturing capacity at a cheaper price?

Posted by sutp > 2021-01-18 14:29 | Report Abuse

Well written, out-of-the-box insights! Painted scenario looks very plausible.

Posted by wkc5657 > 2021-01-18 15:12 | Report Abuse

i was the one that harp on US taking over supermax months ago leh....

anyway, here are my counter arguments as i'm in the opinion that you're looking into it too much :
1) stanley thai and wife transferred their holdings into sdn bhd merely just an exercise to conceal their holdings. The transfer happened not too long after stanley got acquitted. So knowing how their names appear in the list of top shareholdings, another lawsuit to stanley family is a blow to the reputation of the company, even though no direct execution in company now. So unless got good memory, unless someone pay for a company search of supermax sdn bhd, stanley family will no longer appear in the list of top shareholders. If US really want to buy supermax, even without the sdn bhd, they can just approach stanley + wife personally, just 2 persons, just 1 additional entity compared to the sdn bhd.

2) supermax is planning to list in singapore in the near future. The sdn bhd is probably a facade to hide the true holding % of stanley family in listed supermax singapore.

3) US won't buy supermax now even if they have such intentions. They will wait a year or 2 after the covid pandemic truly subsides and the strategic reserves restocking dies down. By then, with the increased players in the market, surely there will come a time similar to few years ago when the glove makes were fighting to maintain market share. Only then is the best time to buy up supermax with a less lofty valuation.

4) as for the stop of share buybacks, i guess they are smart enough to realise that no point fighting the market sentiment. There is a reason why supermax wasn't in JPM's radar and probably quite a number of large institutions earlier because of the court case with stanley, creating a lot of uncertainty/distraction for the company's future. (another reason why now sdn bhd their shareholdings) Their foray into contact lenses also raises some added execution risks compared to the other big 3 pureplay.

Posted by newbie8080 > 2021-01-18 15:15 | Report Abuse

Looks very unlikely.

A normal scene for privatization will be mopping up own shares when price is at the lowest. The recent scenario in 2020 is CCM.

Posted by CharlesT > 2021-01-18 17:47 | Report Abuse

A lot of glove fanatics went crazy

Posted by sostupid > 2021-01-18 20:42 | Report Abuse

It has more shares or its mkt capital is much higher than its cash in hand, why would anyone wants to privatize it. share price vs nta is so big different, you think everyone gila or what.

Posted by TheGardener > 2021-01-19 01:38 | Report Abuse

Haha! Another "FUN MANAGER" write up! Do you know who is Stanley Thai please?

Posted by Citadel00 > 2021-01-19 02:30 | Report Abuse

ya lah ya lah Biden will take over supermx for 4000billion USD

Posted by darksith > 2021-01-19 10:02 | Report Abuse

What if Uncle Sam just takes a stake in SPMX?

Posted by enigmatic > 2021-01-19 11:32 | Report Abuse

There is no way Supermax will be privatised.

When a company is listed on Bursa, it attains extra prestige. Why stop at 20 years of profitable listing status when you can enjoy another 20 more years? Very few companies can achieve the premier status of many years of not suffering losses.

If the Thais want to privatise, they would've done that last year when prices were even cheaper at below RM5. That would have ensured even more profits to be enjoyed, instead of sharing with thousands of other shareholders now.

Seems like people are desperate to support the price of Supermax shares that privatisation can be used as a speculative reason to buy the shares now.