careplus is totally different ball games

because of ANSELL

Ignore all noises and start looking into the intrinsic value of the glove companies that you want to invest.

Don’t need to keep thinking of whether ASP will decline or what’s the next PAT. Those are not important in your consideration of intrinsic value, at all, except the cash that has been generated. When you look back, it’s just a process in every company growth path. You invest in the future, not now.

Imagine you are investing into a future company, a company that has suddenly grown 7 or 8 years ahead of schedule. What additional intrinsic value would you give them?

Follow that path and you will be alright. ASP, capacity, CBP, whatever, are not your concern if you are doing investment, as market will find an equilibrium by its own nature way. Don’t need to complicate things. Financial models are clear and simple.

There are many people who talk a lot in internet, especially in i3. But among them, I don’t think they have the capability to double up their capital every 4 to 5 years, especially for those who doesn’t have billions of capital. That’s the minimum capability one should have before they can be considered as good trader/investor. So majority of their opinions are worthless to listen to. It’s important to be selectively listening.

My 2cent.

I have always been critical of tech sector valuation since I dont view most of them as tech players. More as contract manufacturers, just like foxconn. Sometimes even LED makers also get labelled as tech which is perplexing.

No doubt with numerous new players which includes Thailand, China and our national team joining the glove bandwagon, competition will be a stiff one and only the fittest shall survive.

First the vaccine, then CBP ban, followed by windfall tax and the latest one QR which was below expectation by market generally and reducing ASP which even glove makers spmx and careplus are giving heads up on future QR and agree on this. Hope its well accepted by now.

What we should see is the profit generated, capital in hand now and consistency in making such profit for the next 1-2 years (at least) given coupled with heightened hygiene awareness.

Wonderful insight!

Generally 9/10 short term traders tend to lose and long term investor will be the other way round.

I3 is full with toxic.

Internet has been split into glove lovers and haters. One would like to hear positive news and opinions and hate the naysayers. Well I guess they gotto weigh both sides and do their own study. Same goes to bursa. Other sector up and glove will go down and vice versa.

Hmm....but thanks la for stating this fact out CLEARLY but I am pretty sure I did not insinuate that ES Ceramics is the only glove hand former in the world. Okay?

Oh yeah, one needs to be very careful with what they reads. Read it with open mind and do our own studies....

here's a good example...



If one is lazy or one chooses to read/see what they want to see, this would appear to be yet another purchase of shares from the Lau Pan.

But it's not that straight forward.....

this is because in full the announcement actually reads ...



It's a DBT.

Which brings a totally whole new perspective....

Why? The seller.

That's the Executive Director selling/disposing/transferring (Aha !!! ... see.. with words, one can choose and of course the least damaging version is 'transferring') 1,000,000 shares to his lau pan.

Now because it was done in a DBT deal, not many became aware... that the ED of Top Glove sold 1,000,000 shares.

And this is where the interpretation of the transaction....

the ever loving glove supporters who say .... hey ... small issue... and say maybe there's a reason that the lau pan wants more share of the company.... no problem here. stop making more noises.

the every irritating NOISE MAKERS would say ..... hey... could be bad. The ED doesn't even believe in the company stock anymore.... informs the lau pan the decision to sell but the lau pan says... don't you dare sell in the market but sell to me via a DBT.

well? maybe... both are noises... and what is more important, ALWAYS, is your own opinion. Yes?

So we can dig deeper too, yes? (always the best thing to do.. )

here's something that statikinetic was interested in ... ESOS issue...





source: https://malaysiastock.biz/Company-Announcem...aspx?id=1305077
https://malaysiastock.biz/Company-Announcem...aspx?id=1293337
https://malaysiastock.biz/Company-Announcem...aspx?id=1283809

Getting the ESOS cheaply and disposing the ESOS higher for a nice quick profit...

so if we add it up the total shares.... perhaps nobody was correct.

Both the ever loving glove supporters and the NOISE MAKERS could very well be wrong. This is nothing but a simple case of the ED getting cheap ESOS and selling it for a quick nice profit.

Which goes to say... what is important... as you said ... weigh both sides and do our own study.

If one insist on frequenting forums, it's pointless to do declare others as noise makers. Sometimes, the noise makers, could have a very legit point.

This post has been edited by Boon3: May 8 2021, 10:10 AM

Warren Buffett and the Interpretation of Financial Statements:

Yes there are two sides of the same coin.

Can't just rely on the positive news you want to hear just to make yourself feel secure with your investment. It shows you are too obssessed.

All in all, just ponder some points from naysayers provided its supported with legit facts and data. Always do your own research

On a side note, selling shares reduce investor's confidentiality nce. Topglove ED care about quick profit. Lao pan on the other hand care about his HK listing.

If they were to portray it as director disposal of shares, it will end up like Rubberex. Director disposed on 20-22nd April. Used to fly alongside Careplus in 2nd tier. But these clearly shows that they think their stock price is at peak already or will drop further due to upcoming bad sentiment. Lock some profit first in midst of current uptrend.

Just my 2 cents.

This post has been edited by BliitzkrieG: May 8 2021, 10:51 AM

Paused my entry into the said tech stocks. Been trapped into entering the stocks at a high price last month.

I just entered US stocks last Friday, 7 May focusing on the "undervalued" innovation stocks, ETF, and crypto e.g. Nvidia, Alphabet, Microsoft, ARK Innovation Fund, and Ether



This post has been edited by izzudrecoba: May 9 2021, 06:24 AM

The equation is simple, yes? Well tell me if my thinking is wrong cos...


lower ASP will leads to lower revenue
lower revenue will leads to lower profit
lower profits will leads to lower cash
lower cash will leads to lower dividends


my counting right?


so ASP and profit not important, meh?

Well it depends how one look at it. Nowadays with all those high growth tech company, people like to use free cash flow as a way to value a company, especially what we term as "growth stock".

But to me glove companies are slightly different than big tech or software/internet platform business which the variable cost to scale is negligible once you past a certain threshold. Also the cost for those companies are the R&D/Patents/Active User base etc, not so much on input cost.

Whereas glove is still traditional and each glove you sell, the marginal input cost is still there. So margin and a way to differentiate your margin is important.

Hence long term if you really like glove, then go for Harta. They have the best moat as they can still command a price premium over their competitors pre-covid. The rest are just typical volume game, thin margin commodity business.

Well invest wisely, listen to both side and consider the facts. If you choose to ignore reality like ignoring ASP or even profit, you are basically just gambling and hope that an external factor such as resurgence in covid, vaccine roll out issues or maybe another pandemic will help you with your investment results.

Not sure about you, but to me i find all the 4 you mentioned, they are quite pricy. You need to take into account their market cap ya and not just P/E.

The bigger they are, the harder for them to sustain the growth rate. I still hold some of the stock you mentioned, but i think if you add position at current price you might have very slim margin of safety.

Perhaps you can consider BABA. I think it has a better safety margin and they will be reporting their financial reports this coming week.

Thanks bro. Planning to buy and hold for the long term for the said stocks. I tracked their performance of the past weeks and entered yesterday when their stock is about to recover again (the quasi-margin of safety but I might be wrong).

This post has been edited by izzudrecoba: May 8 2021, 12:30 PM

Free cash flow on glove stocks?

Okay.... nvm....

Apa salahan laupan wanna cash out? After all, laupan work all his life for what? Now he can retire peacefully pun tak boleh? Besides I dont think laupan should stay forever. When the time comes, laupan better move aside for younger generation to go up. Need to learn from Hartalega.

Hartalega is the most overvalued amongst glove companies woh.

I no see people cry mom and dad over Hartalega PER4 or PER5. Still solid double digit PER. So what gives?

RIP Tan Sri Low Yow Chuan.

One of the great role model that I admire a lot.

Left a handful few that are still alive. Hard work after hard work that provide the foundation to build upon.

Regret Malaysia still can’t be a developed nation. Once this long awaiting depression and crash is over, many opportunities will arise for the younger generation to grab and work hard to become the next inspiration for the future generation.

It’s a surely life changing event.

Passed away peacefully at home. Wonderful journey he’s had

what app is this? can buy crypto at the same time haha