KYY is, was, .. I don't know anymore .. a good friend of mine. I try so hard not to "trash" some of his commentary, because he is actually a brilliantly nice person. I guess no more free red wines from Adelaide Hills then ...
My comments in colour.
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Top Glove share price plunge so illogical
Koon Yew Yin 9 Dec 2020
Today Top Glove announced its historical record profit. Its share price plunged which dragged down all the other glove stocks which is so illogical.
Top Glove Corporation Bhd PRESS RELEASE
A STRONG AND HEALTHY START TO FY2021 FOR TOP GLOVE, Wednesday, 9 December 2020 Top Glove Corporation Bhd (Top Glove) today announced its financial results for the First Quarter or 1QFY21 (from 1 September to 30 November 2020), delivering a robust performance underpinned by continued strong global glove demand. For 1QFY21, the Group achieved Sales Revenue of RM4.8 billion, up 294% compared with 1QFY2020, and 53% quarter-on-quarter.
Profit After Tax Attributable to Owners of the Parent (Profit) surged by 20 times to RM2.4 billion versus the corresponding period in FY2020, and doubled against 4QFY2020.
Meanwhile, Sales Volume (Quantity Sold) improved by a healthy 34% from 1QFY2020. The Group’s robust Sales figures were attributed to the strong demand for gloves in both developing and emerging markets, owing to the ongoing global pandemic. The improved Profit came on the back of higher sales output, high utilisation levels which amplified production efficiency, as well as higher average selling prices (ASPs) in line with market pricing.
Moreover, ongoing technological advancements towards automation and digitalisation initiatives, effective talent development, as well as continuous innovation, quality and productivity enhancements which the Group continued to embark on, also contributed to the improved bottom line.
My comment:
Top Glove just announced its historical best result of 29.64 EPS. Its profit is 5.6 times its previous quarter and 20 times its profit for its corresponding quarter last year.
Yet, today its share price plunged which has dragged down all the other glove stocks. It is so illogical.
EPF has been selling every day since 4 Dec. With due respect, over the years EPF’s track record has not been so successful. Unfortunately, many weak holders and Investment Banks are also following EPF to sell their holdings aggressively.
That was an unfair comment. EPF probably had more than 10000 transactions every year on local stocks... to pick and choose one one transaction was silly, naive and only served to prop your argument. You want me to cite your brilliant investments in China-listed company in Bursa?? No, I wouldn't do that as everyone has the right to make good and bad investment choices, not to be picked up as an afterthought to support an argument.
You can see from Top Glove’s press release that due to Covid 19 pandemic, the demand for gloves will continue to exceeds supply. As a result, the company could easily increase its selling price to make 20 times more profit than its corresponding quarter last year.
Currently US has a total of 15.94 million Covid 19 cases and 293,446 deaths. The daily number of new cases is still spiking in US as shown on the chart below.
Yesterday, there were 219,944 new cases. That means there will be more than 1 million new cases every 5 days.
What is known, is known, my mother is female and, I hope yours is too. Tell all of us something we do not know. When you tell us things we KNOW, why would you think it is not in the share price??????????? OK, you might think YOU ARE THE ONLY BRILLIANT PERSON to know the fact ... hence your belligerent attitude when share price does not reflect your views. Surely the rests of the investing world must be idiots and you are the only seer. Or is that that definitive case??? The Occam's Razor... either the bulk of smart investors are WRONG or you are the only 90 year old "right person"???!!!???
The new US Government is desperately pressuring FDA to approve the use of vaccine. Even if the vaccine is finally approved by FDA, it will take a long time to produce enough of vaccine to inoculate at least 70% of the people in the whole world to stop the spread of the coronavirus.
Additional glove required
Currently there is already a shortage of medical gloves. Additional glove will be required when vaccine is approved for use because all medical staff will have to wear glove to inject the vaccine as the photo shows.
The shortages are well known ... why harp on it. Are the gloves so difficult to make??? Is there a moat around the glove business? What fucking moat are we talking about? QL has a moat. TESLA has a moat. Alibaba has a moat. A moat is the Unique, Selling, thing that sets the company apart and allows them the "scaling up" and premium advantage. There is NO SPECIAL ADVANTAGE in glove makers other than an 18 month head start... its a simple business with minimal technical knowledge. If need be, within 24 months, I can come and move in... yes, I might not have your cost advantages BUT it is still no brain surgery... even if I don't come in fresh, the 4th, 14th or 20th maker can scale up..., what kind of super business model you have???!!! ITS A FUCKING SLURPEE... you can buy from any 7-11.. no one makes a better SLURPEE.
US has the most Covid 19 cases in the world. You may like to know that Malaysia has a total of 76,265 Covid 19 cases and 393 deaths. Yesterday we had only 1,012 new cases as shown on the chart below.
My conclusion:
Top Glove just reported EPS 29.64 sen. Its previous quarter was 5.32 sen, an increase of 5.6 times. Supermax reported EPS 30.58 sen for its 1st quarter ending September. Its next quarter ending December will be announced in Mid-January. Based on Top Glove’s profit growth rate, Supermax’s profit should be another new record high. All serious investors must wait patiently for another 5 weeks.
I am not trashing gloves makers but please do not fuck our minds as imbeciles when we already allow gloves makes to be valued at current levels. I cannot tell you HOW MANY TIMES I WANTED TO USE profanities to discuss your comments... Just because we do not ascribe to your investing philosophy" does not mean we are idiots,assholes or silly people who does not know the value of investing. Be more circumspect with how you address people, companies and investing decisions. Do not call people "stupid", "ignorant", "silly", etc... every one has their their own decision making process. Even the brilliant you have BIG disasters in investing, but why bring that up.
Think of WHY this silly blog post gets SHARED so many x ...no, it's not that people like me or my blog ... think again.
You want to share, share la... why shove it in people's faces??? NOBODY FUCKING CARES!!!
p/ actually I cared... otherwise I wouldn't have post this...lol
http://malaysiafinance.blogspot.com/2020/12/what-is-not-right-answer-65100.html
