All gloves drop like hell, still buy?

dead cat bounce

4.5 to 5 is possible... never say never...

ringgit gg... exports becomes cheap cheap... just need some new "order" good news and syndicates will goreng... and unload to unsuspecting "diamond hands"

China Super power is gonna havoc the market....
Good luck our local Glove Producers....

Whenever they comes...
Cost structures, selling pricing & production scale always we lose out ..

Covid has not ended, yet their stock price has now dropped to pre-mco level & with much much more extra cash on hand. You don't think it's undervalued?

Yea, I think based on chart TG stock price still got room to fall, support at rm2.50 to rm2.80.

But harta to me is already undervalued, I'm slowly collecting at rm6.60. Will buy more if below rm6. Plan to keep for a few years.

The market saying TG's expansion plan have been KIV recently due to the China competition, anyone can verify the hear say?

Harta or Topglove?

英科医疗（300677）董事长刘方毅; 每年生产大概 800亿只手套，每天将近2亿只。预计2022年第二季度，年化产能将增至1200亿只，约为目前产能的2.3倍

p.s there are a few more with similar expansion plan.

those live in coconut shell, their world is the coconut shell.

Yes I understand. We could give it a discount.

At the end of the day, the company is still going to be worth something, if want to wait until the revenue goes up only buy sure, go ahead.

I prefer to buy when nobody wants it. Not going to put all my money in for sure. I think at rm1 to 3 range there's already a good margin of safety, compare to buying it at rm6+.

Any advice to those who bought this share at rm6 or rm7? The only way I can think of is buy low to breakeven? Question is when is the right moment as price is getting lower and lower. It bounced back once a while but dropping again..

Does China have so much access to raw rubber like Malaysia? As I know Malaysia has natural rubber resources. That's a advantage for glove industry in Malaysia.

Anyway, no one knows the future, it's too early to say anything unless we see it with our own eyes. If in 2019 someone were to say top glove will shoot up to rm23, nobody will believe. No doubt the profit for glove will reduce, but whether China will succeed in glove manufacturing or not, that remains to be seen.

If people are so positive that china will take over Malaysia glove, then isn't it a good time to buy China glove stock now (if there's one)? It will shoot up in the next decade. Should start accumulating now

China glove manufacturer has invested upstream in nitriles manufacturing, will have cheaper raw materials cost than topg.
Glove is a commodity product, china is not new to glove manufacturing, their export data speak for itself.

A big advantage is also in our ability to innovate like Hartalega. If they were able to disrupt the industry many times in the past, then it is entirely possible for them to continually to do so because it is in their DNA.

People now made it seem like just because China has some advantage during the pandemic, our companies will start failing and lose money from here on.

30 years in the business. Highest quality grade gloves. Good relationships with the clients around the world. Billions of net cash sitting in the war chest. Market consumption still projected to have 10% yearly growth.

Is it really that bad of an investment? If Malaysian glove companies lose market share, then just switch to China companies. But don't forget China also got a lot of issues right now and foreign investors are running away from them.

Maybe, just maybe we should have a little more faith in our capabilities.

Most if not all china glove manufacturers are locals, have little if any sentiment with fdi.

as long as medical glove is u.s fda, etc certified, most if not all users don't bother where it come from, is a commodity product.

glove demand may growth by 10% p.a but new supply in the next year or so is many times of the growth p.a. oversupply in the next few years is a certainty, is a matter of by how much.

plc cash reserve may mean little to shareholders if not put in good use. so far, topg sbb is a disgrace.

china glove export data and price speak for itself.

those live in coconut shell, their world is the coconut shell.

malesia glove exporter may have issue with u.s cbp but not china.

Do you realize even if China biggest glove exporter is banned from the u.s, the market will remain flooded with oversupply.

I admire your determination and respect your reasoning. However, real life is not as straight forward.

Having seen lwc behaviour in the last 15 months, he is more likely to burn topg cash pile to defend market share and world top producer than working with competitors to reduce supply.

Mah sing glove production is small.

From China export data, asp is likely to drop near or below pre pandemic price by year end.

I'm gonna give an unpopular opinion here to all the blind bulls for gloves. Tip, don't hold on to a loser. Averaging down, buy the dip etc are just sunk cost fallacy. Just cut loss, why lose more money as gloves drop further.

Everyone so surprised about analysts downgrading to sub RM2, technical 'analysis' constantly predicting a rebound (as good as astrology for me). Every broken support confirm got sifu come in and say more support, buy more.

Just look at precovid quarterly revenue, compare to covid, and then the most recent quarter. Doesn't take a genius with computers to see that the covid spike in sales is most likely gonna be a one-off thing. ASP price data also shows continuous trend towards normality ie precovid. Doing a simple DCF, even being really optimistic on 15% CAGR next 5 years with 0 capex also doesn't yield a price any higher than RM2.20. New players in the glove industry both locally and in China. You really gotta ask yourself, do you think that TG still can grow revenue and maintain margins as before? I personally don't think so, and there are further downside even when at RM2.20

"But what about covid profit? Must be worth something in the share price no? Share price must be higher than pre covid la." Yes, but no. Previous profit already accounted for in the cash balance of the company + any assets the company reinvested. For TG tho, not so much. Remember the special dividend they issued previously? All the buyback done by the company when it was RM6-ish? That's where all your covid profits went to, all the free cash flow being returned to shareholders already.

I'd be happy to be proven wrong, but if the next few quarters of profit continue to trend back to normality (the scenario that I think is most likely), TG is just gonna slowly trend towards sub RM2 no matter how many squiggly lines you draw on a chart. Even if there are sudden spikes in share price, it's not going to be long term

Any price is a good buy if could sold for profit.

Everyone knows mother is a female but many still got trapped at high floor.

Supermax Corp Bhd is the latest Malaysian company to have its products barred from entering the United States over allegations of forced labour.

The US Customs and Border Protection (CBP) today issued a withhold release order (WRO) against Supermax and its subsidiaries – Maxter Glove Manufacturing Sdn Bhd, Maxwell Glove Manufacturing Bhd and Supermax Glove Manufacturing Sdn Bhd.

https://www.thevibes.com/articles/business/...d-labour-claims

until foreign labour policy is changed, more similar cases will happen.

RM 2 soon...