Posted by Geek2020 > 2020-12-14 19:35 | Report Abuse

Tradeview Commentaries 14th December 2020 - A Time of Reckoning & The Battle of Titans

Malaysia is a blessed country with abundant of resources, human capital and potential. Before the Asian Financial Crisis of 1997 / 1998, Malaysia was regarded as a "Tiger Economy" and even Bursa (then known as KLSE) was the third largest stock exchange by value after Tokyo and Hong Kong Stock Exchange. Today, countries which were once behind us have surpassed our country in terms of economic strength, competitiveness and stability. Countries such as China, South Korea, Taiwan, Singapore are far ahead with Vietnam, Thailand and Indonesia catching up. Thankfully, Malaysia still have strong economics fundamentals laid down from our forefathers with SME forming the backbone of the economy. But, with the Covid-19 pandemic onslaught, SME segment was badly impacted with SME association forecasting close to 100,000 to shutter by end 2020. Official figures from SSM shows 30,000. The huge discrepancy is likely due to the delay in official reporting.

The stock market has however performed extremely well comparing to regional peers throughout the year. At today's closing of 1662 points, Bursa is up 4.66% YTD. This is unbelievable considering the situation in the real economy. I think regulators like BNM, SC, Bursa has done well to support the market. Another major reason is because Malaysia has a competitive Technology and Glove Sector which sustained our stock exchange during the triple whammy of oil price crash, government change and Covid-19 pandemic.

Of late, due to the announcement of vaccines such as Pfizer and its ongoing rollout, the healthcare & tech index took a beating. The rotation of funds from growth to value stocks and beat down laggards was swift. Banks, Steel, Construction, Tourism, Oil & Gas rebounded strongly while technology & glove was hit. The market rally has drawn continuous retail participation. This kept the stock market lively with average daily value above RM 4 billion.

I believe this would not be possible if not for the strong retail participation and remarkable earnings performance which led to share price ascend of glove makers. If we look at the entire stock market today, the only sector with earnings visibility and sustainability is the glove sector. Nevertheless, the sector has been thrown into the limelight for good and for bad. Praise were given for their contribution to the world supply of gloves in the battle against Covid-19 (65% of global share). Criticism being zoomed in on labour issue, Covid-19 outbreak in workers hostel and windfall in income. I covered various angles of glove sector in the past 9 months and do not want to repeat further. I have however, a friendly advice to fellow readers who are either in the IB research fraternity, media, authorities / politicians, in everything we do in life, be fair, reasonable and objective. Do not make judgments or opinions with a coloured lens. The glove sector of Malaysia is one we should be proud of. I know these days any articles on glove attracts huge number of views. I know it because I can see the statistics in my blog & channel. Do not for the sake of attention & populist agenda destroy an entire sector that was organically grown through entrepreneurial spirit, hardwork and grit. This sector is a golden goose of our country. We must preserve, protect and help improve it.

Today, Tun Dr M & Tengku Razaleigh join hands to share their input on the state on the nation including hints on tomorrow's Budget 3rd & final reading where a vote will be required of all 222 MP. This led to last minute selldown of the market close to 1.3%. I believe the stock market will continue to face profit taking until a political resolution is in place or the budget 2021 is passed. For investors, be prudent, hold sufficient cash and do not chase blindly. Avoid loss making stocks and focus on earnings or yield as your north star in this foggy times ahead. If you do that, I believe the worst will pass and eventually, you will see the light again

Source : www.tradeview.my

Posted by strattegist > 2020-12-14 20:34 | Report Abuse

closed red

Posted by Noobee88 > 2020-12-14 21:20 | Report Abuse

Good article! I really cannot understand why we keep bashing a home grown product, when it’s down a little bit, people bash it even further. And then sell down even more.

Posted by Taipan > 2020-12-15 00:33 | Report Abuse

https://www.bbc.com/news/health-55308211
The new variant of coronavirus may be associated with the faster spread in the south of England, the UK health secretary has said

Posted by Taipan > 2020-12-15 00:34 | Report Abuse

https://youtu.be/E25_iAmW-pE

See glove is used for covid vaccine in the USA

https://edition.cnn.com/2020/12/14/us/coronavirus-vaccine-first-shot/index.html

https://edition.cnn.com/2020/12/13/politics/white-house-coronavirus-vaccine/index.html

https://edition.cnn.com/2020/12/13/politics/white-house-coronavirus-vaccine/index.html
https://edition.cnn.com/2020/12/14/us/coronavirus-vaccine-first-shot/i...

Posted by Taipan > 2020-12-15 00:35 | Report Abuse

huge demand for glove to continue for a few years.

Posted by Nancy Boon > 2020-12-15 00:59 | Report Abuse

do not listen to JP Morgan some monster just want to buy low how could Topglove worth 3.50 this Analyst I wonder how...they analyst it ? Topglove down all will effected. I still keeping my Careplus and today I add my Careplus to average up. I analyst those 2 Analyst who downgrade Topglove nuts I don't hold any Topglove but it will effect all Gloves company. The pandemic is increasing everyday tremendously in the whole world and the Vaccines is not 100% safe there are some side effect to some Convid patients who was injected with the vaccine, some Analysts don't agree with their downgrade and criticise them. Have confidence I believe Careplus still look good.

Posted by Daily88 > 2020-12-15 01:17 | Report Abuse

The world need gloves no matter what. Capacity for production of gloves in Careplus has been increased and 2 new lines already run. Anything new to add on to Carepls so far ?

Posted by Noobee88 > 2020-12-15 01:49 | Report Abuse

I think Careplus will chug along steadily for the next few years. Why take money out of a profitable company and invest in loss making companies? Even HLT will carry on making profits.

Posted by Green888 > 2020-12-15 08:32 | Report Abuse

https://sputniknews.com/us/202012141081459049-as-mass-covid-19-vaccination-began-in-us-head-of-pfizer-tells-why-he-hasnt-taken-shot-yet/

Posted by jase123 > 2020-12-15 08:34 | Report Abuse

As much as I like to believe gloves can rebound to new height, probably just have to accept the fact the glory days are over. There will be a rebound for sure, just that it will be a short technical one. Rm 2 is the next support.

Posted by Jeju88 > 2020-12-15 09:20 | Report Abuse

Is it time to pick up? Pretty low now...

Posted by jack11daniel > 2020-12-15 09:34 |

Post removed.Why?

Posted by therookieechingchong > 2020-12-15 10:16 | Report Abuse

Now alot of rotational play, just hold and wait, gloves are still very sustainable and profit guaranteed, people will come back once their counter started to freefall and come back and go out once awhile, is a common norm in recovery market

Posted by james70 > 2020-12-15 10:16 | Report Abuse

US Surgeon General Jerome Adams says people still need to wear masks and socially distance after they've been vaccinated because it doesn't prevent infection just severe illness.

Surgeon General Jerome Adams appeared on GMA on Monday as the first vaccines were rolled out across the US.

He said that Pfizer vaccine protects people against severe disease but not from getting infected.

It means that after people have been vaccinated, they still need to be careful.

https://www.dailymail.co.uk/news/article-9051427/Surgeon-General-Jerome-Adams-says-people-need-wear-masks-vaccine.html

Posted by bullgoup123 > 2020-12-15 11:23 | Report Abuse

there is no any perfect timing to enter, for this counter maybe tomorrow suddenly up for another 15% and Thursday drop again , what you can do is hold or average down until it match your expected selling price

Posted by MasterYoda > 2020-12-15 11:57 | Report Abuse

Guys don’t be stubborn,it will continue to go downhill.Cut loss before become bubur cha cha :) . “Train yourself to let go of everything you fear to lose.” — Yoda

Posted by Noobee88 > 2020-12-15 12:08 | Report Abuse

Master Yoda- please go back to your cave. Don’t need your advice. You say the same thing in all forums, you contribute only negative comments and taunting and advising like you’re a know it all.

Posted by strattegist > 2020-12-15 13:03 | Report Abuse

green

Posted by strattegist > 2020-12-15 17:30 | Report Abuse

closed green

Posted by bigby7 > 2020-12-15 17:30 | Report Abuse

Muhyddin good. Bill sudah pas.
Make all gloves rebound..
I can smell rm3 very soon.

Just top up 600 lots in the morning.

Hohoho

Stay tuned

Posted by Earthtime > 2020-12-15 18:28 | Report Abuse

Firm base, rebound as fundamentally still sound. Global demand for glove remains here to stay, even with vaccines. Reality is safety ethics require gloves ...

Posted by Noobee88 > 2020-12-15 19:17 | Report Abuse

Nice...keep up the positive sentiments! Up please! Been down for too long already!

Posted by Morpheus61 > 2020-12-15 19:21 | Report Abuse

Analysts talk about reduced ASP in FY 2022. The lead time is 510

Posted by super_newbie > 2020-12-15 20:50 | Report Abuse

ASP simply maintain at $25-$30 per 1000 pieces with 15% NP margin by post pandemic, no problem for RM150m PAT per year. Market Cap justified at RM2B with much lower PE between 13-15.

Posted by Morpheus61 > 2020-12-15 21:08 | Report Abuse

Sorry, what I meant was the lead time of 510

Posted by Morpheus61 > 2020-12-15 21:13 | Report Abuse

510 days means the sales made today will reflect only in FY 2022

Posted by Up_again > 2020-12-15 21:15 | Report Abuse

No worries, the big 4 one by one stop production 2 weeks each because of infections. That will drive ASP another 40-60%
You want gloves???? Pay up

Posted by EngineeringProfit > 2020-12-15 21:17 | Report Abuse

You think like the fable of the hare and tortoise.....slow and steady, win ah?

Posted by sharewiz118 > 2020-12-15 22:18 | Report Abuse

que at TP RM1.80

Posted by Taeyeon09 > 2020-12-15 23:03 | Report Abuse

Tomorrow big rebound, brace yourself

Posted by Taipan > 2020-12-16 00:19 | Report Abuse

U.S. Food and Drug Administration staff recommends monitoring people who get Pfizer or Moderna’s Covid-19 vaccine shots for possible cases of Bell’s palsy, saying it’s not necessarily a side effect but worth watching out for after a handful of trial participants got the condition, which causes half of your face to droop

Posted by Taipan > 2020-12-16 00:19 | Report Abuse

In the setting of the COVID-19 pandemic, gloves should be worn when administering intranasal or oral vaccines." The CDC notes that if gloves are worn while administering a vaccine the healthcare worker should change them between each patient and observe proper hand-washing hygiene.

Above is from CDC

Posted by Taipan > 2020-12-16 00:19 | Report Abuse

CVS Pharmacy is the largest drugstore chain in the country. CVS company policy is for its healthcare workers to wear gloves while administering vaccines. In addition to the nearly 20 million people the company expects to inoculate with the flu vaccine this year, CVS is also working with Operation Warp Speed to administer COVID-19 vaccines, another indicator of the expected increased demand for medical-grade gloves in the coming months

Posted by Taipan > 2020-12-16 00:19 | Report Abuse

Gloves that are just as needed at St. John's in Southern Los Angeles. CEO Jim Mangia told 60 Minutes his clinics are stockpiling them. Mangia said that without a plan from the federal government he fears St. John's community health clinics will once again be in a bidding war with larger hospitals and states for essential PPE that is still in short supply

Posted by strattegist > 2020-12-16 09:26 | Report Abuse

green

Posted by kuring2 > 2020-12-16 10:03 | Report Abuse

https://www.gov.uk/government/news/phe-investigating-a-novel-strain-of-covid-19?fbclid=IwAR06EcTNh0rOaeU_cLrHNf-tbw3aBcPEYLrDz4hCrCts62Y05kbUXyJuVi4

Posted by bigby7 > 2020-12-16 10:13 | Report Abuse

I smell we are cruising to 2.80
Shall we

Hohoho.. Merry Christmas

Posted by kuring2 > 2020-12-16 10:18 | Report Abuse

Big 4 flying.. hopefully k+ will follow.

Posted by Taipan > 2020-12-16 10:27 | Report Abuse

https://klse.i3investor.com/m/blog/gloveharicut/2020-12-16-story-h1538...

Supermax TP RM 13.20 as at 15 Dec 2020

Careplus will fly as well TP RM 5 above

Posted by strattegist > 2020-12-16 11:21 | Report Abuse

green

Posted by strattegist > 2020-12-16 17:21 | Report Abuse

closed green

Posted by Earthtime > 2020-12-16 17:41 | Report Abuse

Fundamentals still great ..rm 3 at least

Posted by Taeyeon09 > 2020-12-16 21:11 | Report Abuse

Tomorrow conlanfirm huge rebound to 3 above

Posted by Noobee88 > 2020-12-16 22:20 | Report Abuse

Bigby7-get lah your fund managers...chase till RM4!!!!

Posted by Noobee88 > 2020-12-16 22:23 | Report Abuse

https://uk.reuters.com/article/us-malaysia-top-glove-breakingviews/breakingviews-rubber-glove-selloff-gets-out-of-hand-idUKKBN28Q0BD

Posted by Noobee88 > 2020-12-16 22:24 | Report Abuse

There will be a rebound on gloves sooner than you all think..,.shareholders have given up too soon ! Time to come back. Where else will you find companies making huge profits. Buy in, get your tickets ...this is going up.

Posted by Noobee88 > 2020-12-16 22:43 | Report Abuse

https://uk.reuters.com/article/us-malaysia-top-glove-breakingviews/breakingviews-rubber-glove-selloff-gets-out-of-hand-idUKKBN28Q0BD

Posted by Mustovoi > 2020-12-16 22:58 | Report Abuse

1.50 to 5.8....now 2.50.... With good profit for entire 2021
Which way up or down.... So easy to guess lah..

Posted by Allenlee > 2020-12-17 00:05 | Report Abuse

https://www.freemalaysiatoday.com/category/world/2020/12/16/us-sets-new-24-hour-record-with-nearly-250000-infections/