1. Technical charts shows an uptrend resuming back to normal. 2. Fundemental strong until next year. IB Analysts Guaranteed. 3. Wednesday is Hari Malaysia so is a holiday and Thursday already qtr report coming out. "BUY BUY BUY" sentiment is in play before Investors miss out on the "EXPLOSIVE" earnings. 4. Special Dividend Incoming ? 5. TG Share buybacks shows Tan Sri & management confidence! 6. Glove industry is the only industry with huge earnings capability until 2021 for sure. Look at Comfort, Careplus, HLT & so on ~ 7. Local Institutions has started coming into the market as you can see in the Daily Trading Statistics 8. Tan Sri ANNOUNCE LIVE ON TV HE WANTS TO OVER TAKE PUBLIC BANK & MAYBANK BY END OF SEPTEMBER 2020 OR EARLY OCTOBER 2020. What else is needed to say. 9. Vaccine has nothing yet that is approved by WHO. As long as WHO dont approve any vaccine , it is not safe for usage.
Lets us get aboard the TG rocketship and go to the Moon together ~
1) strong EPS, with capacity expansion story in Q4. 2) Owner and company keeps buying back 3) Bonus issue coming up 4) Technically looking quite good 5) Owner appears to have cornered the stock and taking steps to raise the prospects of the company.
Definitely a dark horse in this race...will surprise many, is my guess.
RUBBEREX CORPORATION (M) BERHAD CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED BONUS ISSUE OF 554,850,234 NEW ORDINARY SHARES IN RUBBEREX CORPORATION (M) BERHAD ("RUBBEREX SHARES")("BONUS SHARES"), ON THE BASIS OF 2 BONUS SHARES FOR EACH EXISTING RUBBEREX SHARE (INCLUDING TREASURY SHARES) HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER
Glove stock will continue to rise!For maximum profit investor should buy HLT or CAREPLUS.The dark side clouds everything. Impossible to see the light, the future is.”
The results are exceptional, it goes without saying. It beat market expectation of RM 1-1.1 billion by a huge mile. This is what we call a blow out quarter. At RM 1.33 Billion the results exceeded consensus by close to 20-30% minimum. Full year 2020, the results is RM 1.9 Billion which flat out beat consensus of the media RM 1.48 billion by almost 28%.
Of course before this, many critics said Top Glove expensive with trailing PER 70x. With the latest results, the trailing PER fell to 38x. Forward PER, is only 13.6X . That is assuming that next 4 QR maintains at this net profit and there is no further growth which is not likely.
I would like to highlight what impressed me the most are the utilization rate is close to 100% which allowed Super economies of scale for them. Additionally, they have repaid their debts and turned net cash of RM 2.34 Billion. Hence the share buy back earlier was only a drop in the ocean for the company. With that they further paid out 8.5 sens dividend (combine earlier payout) which translates to 50% dividend pay out ratio of profits close to Hartalega's 60%.
To put things into perspective, Top Glove results of RM 1.33 Billion net profit this QR flat out beat Maybank's recent QR of RM 900+million and Public Bank's RM 1 billion net profit. I think this results validates my bullishness of the sector and continued confident outlook of having Glove stocks in my investment portfolio.
This bellweather results is an indicator for the entire sector. Please note this also shows how the others would do well, especially when you see how much Nitrile Gloves demand has risen closed to 31% vs Latex only 7%. Riverstone, Hartalega, Kossan, Sri Trang, UG Healthcare, Supermax, Comfort will all do well continuously.
For those who are not sure what to do, again it comes down to you investment horizon, risk appetite and ability to hold. I am of the view Top Glove has shown its able to deliver regardless of the adversity, negative news and what not. I have confidence Top Glove may really exceed Maybank to become Malaysia stock with largest market capital.
The market was seemed to be manipulated yesterday when all glove stocks were sold at low points at 14:45,16:00, 16:35. This is because IB did the shortselling! “Permitted Short Selling (PSS) is not affected by the temporary suspension of short selling, as PSS is necessary for market makers to market make the relevant securities such as exchange traded funds efficiently.” Market maker = IB can shortsell !!! IB short selling to create havoc in the market because of the call warrants issued expiring soon, esp in Oct. Many of them are in bad loss esp those issued with Low premium before April.
The short selling sold 17 Sept must deliver the shares in 2 days time. Thats called T+2. Those sold today will still buy back tomorrow coz there is such a thing as Express Transfer to deliver shares to you in 2 days time. Its a gamble, so today will be buy back time for these IBs. That means the rebound must not more than 64 Sen in order for IB to win big. If there are a lot of buyers today these Short Sellers will lose. These are the warrants going to be expired. (i) C77/CIMB /28 September (ii) C78/Kenanga/8 October (iii) C80/CIMB /27 October (iv)C 81/RHB /23 October (v) C 83/CIMB /27 October
All will cause banks to lose tons of money right esp Maybank c84.
All glove supporters. The call warrants is a big issue now as dirty hand manipulate the market deliberately despite knowing to true value of glove stocks. We have to stay united, share this info to the our community to fight against wicked IBs who use many tactics and rumours to shatter the market ... and shortselling are the latest manipulation!
We have to hold on to our shares to win big together. The bosses of glove stocks led by TS Lim WC will lead us too win big as Gloves is the very few stocks that really make profits in this pandemics. 1. Strong earnings visibility for the next 12 months (min) with / without vaccine
2. Shortage is acute especially for nitrile Gloves
3. ASP price increased has been and will remain elevated for some time
4. Structural change in demand and hygiene habits
5. Monopolistic position of Malaysia supply to the Global markets
6. Valuation is still lagging actual earnings growth and it will be reflected in coming quarters
7. Huge cash inflow for Glove players. Cash is king especially during weak economic environment.
8. No other better sector / industry / stocks for alternative investment opportunities in the near term.
9. Some local funds / local investors may not believe in the Glove sector. But I believe in it strongly. My belief is objective based on data, facts and numbers. Not emotions. There is deep value in Glove sector especially those with strong quality management like Hartalega,, Supermax and Top Glove.
10. Lastly, the Glove sector is very relatable to retail investors who can touch, feel or understand the nature of the business due to usage in daily life.
CW : Mother price > excise price = in the money Cw: Mother price < excise price = out of money (expire worthless) THe IB are pressing down so badly because they made a bad bet with their old warrants. , they never expected TG share prices to rise so much. One the old warrants all expire.. the IB won't press so much.. but it also means trading with warrants become a lot more dangerous.
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....
Bullacent
92 posts
Posted by Bullacent > 2020-09-13 19:51 | Report Abuse
Darling is angry want to swap back the loss. 6 dollar is coming soon