Jerasia looks like a good company. Garment manufacturer. Management says worst quarter is over. Have repurposed about 70% of their production lines and gotten approval to make PPE (mainly gowns and head/shoe covers) since july. Already secured orders from health institutions to supply (from date of announcement, 750,000 pcs amounting to about RM 5mil). Share price has been downtrending with low volume until recently.
Technically, price is very close to support of 38-40sen. no clear resistance until about 55-60sen. It has formed a nice flag, with potential for breakout soon. What do you think?
my thesis for jerasia is this: repurposed 90% of their production line to make PPE (gowns and head covers and shoe covers). Since they're already a garment manufacturer, they don't incur any cost to repurpose and can start production straightaway after getting approval (which they already got some months ago). So far, they are the only company that I know doing that. Others all enter face mask production (low barrier, simple to do, no approvals needed).
They already secured orders for their gowns from health institutions. And with 2nd outbreak of covid, Sabah already said they are lacking medical gowns. Inventory left 10+ days of stock only. severe shortage. I expect the shortage in other states will follow suit.
The Group’s capital raising exercise by way of a Rights Issue to capitalise, as announced on 10 August 2020, is pivotal and on track.
It will deleverage the Group’s bank borrowings and will address liquidity issues due to cash flow mismatches. In addition, plans are actively being undertaken to deepen and expand the Group's entry into the healthcare segment.
Jerasia quarterly results...not so great.. But this company may have hit the right note by venturing into Gloves and PPE....look at the cases..5725. With only 80+ million shares....a limit up one of these days is highly likely....will monitor trades from next week.. If it retest the 4 weeks high.....49sens..only then uptrend is intact....lets c
Been losing 91sen for past 3 quarters and likely to lose again coming next quarter. Revenue also down a lot as business badly affected due to pandemic. High borrowing is of great concern and to venture into glove making now by raising funds through yet too be approved right issue is deemed optimistic. It seems that even the land in NS is yet to be purchased and the factory also not constructed. Not to mention machineries been not installed and workers yet recruited and trained. As from article from Edge, "Subject to the completion of the factory, the first glove dipping lines is expected to be commissioned by the second half of 2021." Is really a gigantic task and hope they will succeed and do wish them well. 01/02/2021 2:10 AM
Golden Global was incorporated in Malaysia on 1 July 2020 as a private limited company. The principal activity of Golden Global is in the business of original equipment manufacturing, trading, marketing of nitrile and latex gloves. Golden Global is the registered brand owner for gloves known as “Golden Care”. As at 27 January 2021, being the latest practicable date prior to the date of this announcement (“LPD”), the issued share capital of Golden Global is ((RM100,000)) comprising 100,000 ordinary shares. The SOLE director and shareholder of Golden Global is Streram A/L Sinnasamy.
Jerasia agrees to supply to Golden Global and Golden Global agree to purchase from Jerasia minimum of 72,000,000 boxes of latex and nitrile examination gloves within 3 years from the effective date of the Offtake Agreement or such further period as may be mutually agreed in writing between the parties, with a monthly minimum volume commitment of 2,000,000 boxes throughout the said 3 years period.
The purchase consideration of the latex and nitrile examination gloves shall be at the prevailing average selling price of such products in Malaysia.
if by average of RM20 per box, the revenue will be 40mil per month? minus out their COGS, likely will turn the company's P&L around when it starts and reflect on next year. However we need to monitor the ASP as well.
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....
Cheongster1715
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Posted by Cheongster1715 > 2020-09-02 18:59 | Report Abuse
price rebound after others healthcare stock jalan