investment research team forwards their reports to me

hi, wanna get your opinions on this stock.

Seems like the chart show it is at support level now with what look like 2 dojis at its support. All the gloves are green today except TopGlov so I am thinking it could catch up with the rest tomorrow. What do you think?

Top Glove is biggest glove manufacturer, its favorite of FF and local Fund, not surprise it drop a lot recently

I am very sad that this counter fails to catch up with the klci. It continues to show signs of weakness in the last qarter. Just wonder what excuses it gives other than rising cost and slowdown in orders.
Any friends have ideas?
Thans

Need to find out who is their auditors...There are lots of auditors here.

I guess reason may be due to low utilisation and low nitrile production. They will major gainers when dollar rises and rubber prices drop and when demand goes up as they have capacity. Other manufacturers are running close to full utilisation >90%.

i think it is a short term crisis.
They can easily do something changes as they are the market leader.

very encouraging response from you pal. lets hope it is the way. yes, i still think its a short term issue, coupled with analysts' negative comments about it.
thanks

Even with the selldown, the Topglove PE is still high about 11-12x, based on latest quarter report. There are other rubber glove company which is selling at even more attractive PE level & higher margins. Rubber gloves is fast becoming commoditized as new production facilities is coming on stream will will add >5 billion pieces production in 2011. Then the margins will be become even less as there will be over production. Some rubber manufacturers are moving toward higher margin nitrile surgical/specialty gloves. The nimble wins, the giant might not be able to chase.. but lets see the management's ability. Low capacity utilization is actually the killer rather than the benefit, as fully utilized caapcity enables you to produce cheaper based on your fixed overheads.

This post has been edited by gark: Mar 7 2011, 02:58 PM

gark,

you dare to BBB?

BBB? Whats that?

BBB = buy buy buy

Don't want. Price is not attractive enough yet, not enough margin of safety. Rubber stocks used to have low PAT margin for years and years, only shot up recently due to PAT margin improvement, but expecting margin to fall back in line. Waiting for PE=8x first. No rush to buy.

This post has been edited by gark: Mar 7 2011, 05:23 PM

YOu have a point there. However, the price is currently pegged at more than 2 yrs low. Still not a good buy?

Not for me, but maybe good buy for everyone else. Different style of investment. Once I buy something, I rarely sell it.

What 2 year low? From the graph it is at most 6 months low, have not touched the 52 week low yet.



This post has been edited by gark: Mar 7 2011, 06:47 PM

what is your ideal price? RM4?

First Single Tier Interim Dividend of 7 sen (net)

EX-date 27/06/2013
Entitlement date 01/07/2013
Payment date 18/07/2013

Top Glove posts lower Q3 pre-tax profit

Top Glove Corporation Bhd has registered a lower pre-tax profit of RM43.373 million in the third quarter ended May 31, 2013, compared to RM63.683 million posted in the same period last year.

The world's largest rubber glove producer however recorded a slightly higher revenue of RM604.082 million during the quarter compared to RM603.295 million in 2012, the company said in a filing to Bursa Malaysia today.

For the nine-month period, the company posted a pre-tax profit of RM175.145 million on the back of a turnover of RM1.765 billion.

It said latex prices declined by 20.5 per cent from an average of RM7.52 per kilogramme in the third quarter of 2012 to RM5.98 per kg in the third quarter of 2013.

Meanwhile, nitrile prices fell by 27.5 per cent from an average of RM5.30 per kg in third quarter of 2012 to RM3.84 per kg in the third quarter of 2013.

Moving forward, the group, which has a total of 470 lines nitrile glove production lines to date, will increase them to 583 lines by April 2014, further boosting production capacity to 47.9 billion pieces of gloves per annum from 41.1 billion pieces

Top Glove to increase investment to RM3.8bil

Its chairman, Tan Sri Lim Wee Chai, said this would include the cost of its 30,772-hectare rubber plantation venture in Sumatera, Indonesia.

He said its RM3.8bil investment plan will comprise RM3.1bil for the construction of 40 new factories, RM0.1 billion for investment in new information technology, RM0.15 billion for corporate building and RM0.45 billion for plantation.

Lim said Top Glove will have 25 factories by April next year with annual capacity of 47.7 billion pieces.

today is the rebound of glove sector...~~~