Averaged down MORE Supermax @ 89c...prepared to go the 7,8 or even 9-yr journey, IF necessary, to capital gain that I took successfully with YTL, Oriental & YTL Power respectively.
L@@ks likely to close higher than theoretical ex-divvy price...vindicates my decision to raise my stake from 21,000 to 29,000 between the last two dividends, guaranteeing only the 5th >1000 dividend check since 2013, SBagan, Alcom, Comcorp & Maybulk being the previous ones.
Good net cash position, and business value almost no cost at current price. Interestingly the company is going to set up a plant in the state. I hope the management will shelve the plan, punters are all observing when the net cash will start to decline when the management starts spending. Good management should declare maximum divi and let the price be adjusted ex divi while waiting for the next global pandemic as they can't create value with the current glove ASP.
In theUS, state of art factory uses robots and A.I. No need Bangla, reduce costs. Said to open in Q3( July to Sept 2023). So watch out. Hopefully, by then, the US Customs and Border restrictions will be lifted. The ban took effect on 21 Oct 2021.
Not all is lost yet. Every day the investment banks write negative reports about glove manufacturers profitability. What if Russia blows up Ukraine’s Zaporizhzhia Nuclear facility? Or chemical or biological weapons used? The whole world would be scrambling to buy gloves!!!
KUALA LUMPUR (March 22): Supermax Corp Bhd said production of its first ever manufacturing plant in the US is now expected to begin sometime in the second quarter of 2023, instead of the fourth quarter of 2022 as indicated earlier. In a bourse filing, the glove maker said the advanced facility located in Brazoria County, Texas, will be the group’s 18th international plant. “The new 215-acre manufacturing facility will showcase cutting edge capabilities through expanded use of artificial intelligence and robotic engineering,” it said.
All money gone in no time, 1st Phase already RM1.47 billion? There are another 3 phases how many billion MYR more? This will be the company’s 18th manufacturing plant worldwide and its first in the US. The new 215-acre manufacturing facility will showcase cutting edge capabilities through expanded use of artificial intelligence and robotic engineering. The facility will be comprised of a total of eight buildings.
Supermx!? Hold/Swing: 75/25%!? Present Cash/Floor= @0.84.!? Plus Treasury Shares>@0.85!? Next few Quarters, Hidden Positive/Negative.!? Cash will burn after #15 years, if loss of #150M/year!? Or can pay DY of #0.05/share for #15 years!? Added!?
https://theedgemalaysia.com/node/671843 Most of bursa are overleveraged are highly in debt. ome companies in sectors such as rubber gloves and consumer goods have turned net cash in FY2022 from a net debt position in FY2019.
Companies such as Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd were sitting on a net cash position of RM271.63 million, RM1.98 billion and RM2.22 billion respectively as at March 31 this year, compared to net debt of RM2.17 billion, RM403 million and RM217.7 million respectively in 2019.
Companies such as Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd were sitting on a net cash position of RM271.63 million, RM1.98 billion and RM2.22 billion respectively as at March 31 this year. Of course the Cash Burn going forward, the hidden bullish/bearish, divergence, nobody can assumed from past n present variables!? At present interest rates are high, how much #% of interest are earned from current fixed, bond n other investments!? Supermx #2.2B, roughly around @0.025/0.03/share!? Only two gloves companies selling below its Net-Net; Cash/Floor Value: Supermx n Comfort!? Not a buy/sell advice, do your own analysis.
As I said earlier Supermax should abandon its intention to set up a plant in USA. Just cut losses and get out and distribute the dividend from the cash horde of RM2.2 billions. Market will adjust the price. In doing so Stanley will still gain the most. It is not a shame to let the company share drop to a penny. The fact is the business is in a downturn and rescue can be done through future rights issues.
Where can buy? The more you buy, the louder you cry. Expansion is just a smokescreen to transfer the monies to somewhere only. Real investors know it well.
myinvestor Shares (mil) 2,720.62 and net cash 2.3b. roughly worth 85cent/share. How u get .0025 cent/share? #2.3B, invested current term in: 1. Debt Securities 2. Money Market Funds n others. Average yield is #3.6%, so roughly around that numbers!? U can go to its Cash Flow Statement, roughly u calculate, plus other hidden expenses going forward!?
Supermax will be the first Malaysian gloves company in US soil. It can seize US & European market more quickly. Imagine the branding when it's producing in US. (MADE IN USA)
Siow Looi Supermax will be the first Malaysian gloves company in US soil. It can seize US & European market more quickly. Imagine the branding when it's producing in US. (MADE IN USA) Quite a numbers of variables, sales to US continents n Latin America, EU countries, the logistics charges, exchange rates, etc. Of course the first few months, probably around #18 months, Asset Turnover will gradually go up! First #3/6 months, will have losses!? Any other beneficial variables, we think the management should know better!?
https://www.mdsassociates.com/advantages-of-buying-american-made-ppe The advantages of Supermax American made PPE. +Boosting The American Economy +Adhering to Strict Standards +Supporting Future Investments +Lower Trade and Budget Deficits +Decreased Transportation, Increased Sustainability +Domestic Environmental Regulations +Safer Labour laws. +Quality Standards You Can Trust
if manufacturing in America can make money why all their factory move to china or SEA ? The only reason why supermax make factory in US is because stanley want to retire there.
https://www.reuters.com/world/what-is-eris-new-covid-variant-2023-08-14/ NEW YORK, Aug 14 (Reuters) - COVID infections and hospitalizations are on the rise in the U.S., Europe and Asia. Health officials are pointing at the EG.5 "Eris" coronavirus, a subvariant of the Omicron lineage that originally emerged November of 2021.
With fast increasing hospitalisation in US, Europe and Asia, the demand of gloves will also increasing for coming qtrs.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
dompeilee
11,889 posts
Posted by dompeilee > 2023-05-31 09:13 | Report Abuse
Averaged down more @ the 92.5c open