Cool, good to know

Greetings guys, just back from swabbing 110 ppl for the weekend

thanks for highlighting regarding the resignation of two chairmen,otherwise I wouldn’t have dug further on spmax’s governance to find out Rafidah Aziz was the chairman replacing Stanley Thai till 2015.

https://www.malaymail.com/news/malaysia/201...apology/1620490

It’s important to note though, her resignation was due to disagreement over political stand point with Stanley, nothing to do with the company business, so we don’t have to worry about “more directors retiring/resigning”.

Other than that, like Boon mentioned, I think they should be more transparent on the breakdown of expenditures namely their contact lens business, otherwise it would give rise to suspicion on fund misappropriation..

Chromatino, you said you’re not happy with spmax increasing their production capacity as the “the demand for gloves will most likely decrease”, instead you prefer they use retained profit to reward shareholders in the form of dividends or doing sbb.

In case you do not already know, we’re investing in a growth company here, giving handsome dividend payout is not what a growth company would do, they need the retained profit to reinvest into the business. As long as they are pulling in good money consistently and are transparent on their expenditures, I wouldn’t be too concern on dividend yield. (If you want good dividend payout,can look for grown companies with tonnes of cash that have reached their peak in expansion)

Oh ya, in regards to “demand for gloves will decrease so they shouldn’t spend their profit into capacity expansion”, just FYI they are glove manufacturing companies ya...you don’t want a glove manufacturing company to invest huge chunk of their profit in property sector like Mah Sing ya, or any sectors for that matter lol

I never understood the high valuation of tech stocks neither, though I know Malaysia is a major exporter of semiconductors. Just vaguely remember some seniors advice of not getting into tech industry because it changes rapidly,more unpredictable products innovation and cash flows..think Nokia Motorola SonyEricsson.. anyone wanna shed light on this?

Also,does anyone have comment regarding the high PE of QL resources?

thanks bro. well i actually know quite a bit about this company.

however i find myself constantly battling between buying into a growth company which is not growing fast enough to justify the high PE ratio.

but on the other hand, it reminds me of a quote by peter lunch which goes: "investing is an art, not a science, and people who've been trained to rigidly quantify everything has a big disadvantage"

come to think of it, it makes sense. if everyone follows a rigid set of valuation metrics to determine whether a company is worth investing, by logic all accountants would be great investors haha..

if anyone is vested in this counter, i'd like to hear your opinion if you're willing to share one thing or two.

I suspect got robot in this forum! MOD can we make an identity verification check? The ones you have to tick boxes of railway or buses to ensure you are human..

Only when the tide goes out do you discover who's been swimming naked

This post has been edited by MedElite23: Dec 19 2020, 11:11 PM

Bro got any source for this? Or it’s just a possibility that you think might be boiling underneath?

Also, if your assumption happens to materialise,what do you think are the factors that will trigger the “crash”?

As a healthcare personnel, I can attest to the fact that we’re running short of gloves, as the amount of gloves healthcare workers are consuming everyday just for covid swabbing alone is massive. Excluding for other usage like carrying out sterile/invasive procedures, contact tracing, sanitising, blood taking etc for both covid and non-covid patients.

If one does not believe on the sustainability of glove demand,what you mentioned isn’t impossible. In the case of lower demand or lower ASP, instead of competing with one another between glove manufacturers,they can form an association to fix on the glove pricing to establish a win-win situation, after all glove price is not controlled by government.

Alternatively, they can halt production like what the o&g sector is doing to artificially boost demand. I mentioned earlier that in the scale of a nation, pricing will not be the first consideration factor when the demand is there and supply is relatively scarce. What gives? Simply because there is no replacement for gloves, as it’s an essential product especially to the healthcare sector.

Of course these are just my opinion, readers can take it with a pinch of salt, instead of jumping to conclusion to disregard, it may serve as food for thought.

This post has been edited by MedElite23: Dec 20 2020, 01:35 PM

I’m not disregarding you, you said you’re open for discussion right?

But since you are mentioning about crash as a result of glove hoarding and price inflation, I think it’s only fair that you elaborate on what do you think might result in a “crash”, you need to “join the dots” so to speak, otherwise your point won’t carry the weightage and credibility that it deserves.

This post has been edited by MedElite23: Dec 20 2020, 01:44 PM

Thanks Avfan, will read up about it

Bro if you notice, what the analysts did were just predicting outcome(earnings) based on extrapolating recent performance. Of all these reports (regardless whether it’s an overweight or underweight call), the analysts did not consider the probability of outliers, quoting from Howard mark in his book “the most important thing”,in the stock market what SHOULD happen does not necessarily materialise, when that happens, that’s where money is loss.

That means to say, ASP/glove demand supply might decrease sooner or later than expected, COVID may end earlier or later than predicted, any of these occur might change history.

Since March this year, we’ve seen multiple analyst reports making TP with huge discrepancy. The moral of the story is we can only take these reports with a pinch of salt, ultimately independent thinking is still the most important, coupled with balancing the risk reward ratio.

These are the factors to consider when balancing portfolio,it really has a lot to do with your thoughts and believe,independent of the voice of outsiders. From my perspective on glove, since I can’t predict the unforeseeable future, I’ll put my money based on their current and short term earning power, and rebalance my position through observing the pandemic progress. Unfortunately, the numbers are only rising day by day worldwide with some European countries going on lockdown la...I don’t see pandemic ending anytime soon..in fact, I’m more inclined towards thinking the worse is yet to come..

I’m putting this as neutral as I can already..

This post has been edited by MedElite23: Dec 20 2020, 05:20 PM

So far, there’s one account already in my blacklist.. thankfully the avatar is big enough,whenever I see it I just skip over that particular comment... guess who

Just wonder, are you vested in glove? Asking only hehe..

Of course need to know if a person got skin in the game, but then one can always lie and we won’t know pun haha..but then honesty is appreciated la..

Instead of bearing the mentality of “eh the fella vested in glove of coz he say all kinds of good things about it la..” vice versa..

I see it this way,if a person is vested, has all the points to justify his stand point, and is ready to defend his position, I don’t see anything wrong, in fact commendable for being courageuous..

Of course..the flip side might be true haha

This post has been edited by MedElite23: Dec 20 2020, 06:37 PM

That’s far from my intention, everyone has the free to speak up provided it’s backed up with justification la..in fact I’m all ears..need to see two sides of the coin to be more rational in my stock pick..

The reason I ask if he is vested is the same reason you want to know if the chairperson holds a stake of his company shares before deciding to invest in it or not

This post has been edited by MedElite23: Dec 20 2020, 06:41 PM

Let’s watch and see if gov would check on the workers living condition under a company that’s didn’t experience a supernormal profit..

The last I remember, 50k fine for one worker right?

The story has changed, ppl’s optimism towards economy recovery seem to have overshot, only to be woken up by new surge of covid cases with a mutated strain discovered. Guess what counters opened green today? But well..it’s only the beginning, let’s continue watching..

TGuan and Magni, what are your long term prospects on these two companies guys? Price is attractive now hehehe...

Without going into the nitty gritty, at a glance these companies have super solid financial background, rest assured if March incident repeats they won’t close down

Magni: double digits ROE with good dividend payout consistently, precovid earnings increase after year, can be in your portfolio if you’re not looking for a robust growth company. Risk of investing in this company is they rely most of their earnings from 1 customer (Nike).

Tiguan: increasing earnings with good ROE, their plastic packaging complements well with their food manufacturing business. Unlike scientex where they do packaging but hen dip their feet into property development

There are more to it la but I lazy type out haha..you can go through their AR to figure out more..

Quantitatively both companies are good for long term holdings, but not volatile enough for traders to take a position.

Magni is garment manufacturer for Nike bro.. plastic packaging only occupies 8% of their earnings if I’m not mistaken

Statikinetic, in case you’ve not noticed, no one replies to him in this sub forum. He’s famous for trolling and plucking shit from the sky and stuff it down ppl’s throat. If one doesn’t bother to find out their NP margin is consistently at 10% +- and start bs about competition, that’s akin to dog barking, I’m writing this indirectly lest readers get misled.

True,and looking at the fall of index as whole today, we might be looking at further dip sometime later in the month or even coming few months esp COVID is worsening over the world.

So I’m keeping some cash for now to look out for better opportunities in case they arise.

This post has been edited by MedElite23: Dec 22 2020, 12:08 PM