The 4 Kings of Glove: When Will They Reverse The Downtrend?
Updated
Market Analysis
The 4 Kings are TOPGLOV, SUPERMX, KOSSAN & HARTA: (not to be confused with Andy Lau, Leon Lai, Aaron Kwok & Jacky Cheung)
Fundamental good stocks with strong revenue and cash positions. However, those that chase these heavily promoted stocks at the high side would really need to hold long term in order to recoup. Not sure when it will happen though.
Line chart shows the average price of all the 4 Kings.
So many bad/negative news (examples) despite good earnings drove the downtrend. Never fight the trend! nor matter what. When it rains, it pours like crazy...
1. Export got blocked by US custom borders for labor practices
2. Failing ASPs
3. Possible more windfall tax (not a really good idea as this will scare off future foreign investors to our country. They are legitimate business, no point to punish them for running a business and making a profit. Even though the profit is super bountiful due to covid19. Heck the glove industry already "donated" like RM500 million previously)
4. Closure of factories due to their workers getting infected by Covid19
5. More competition for folks that jump into glove making bandwagon (i think this will be a disaster for those new entrants once demand drops to pre-covid numbers. Just take a lesson from face masks. At one point, a box of face mask was selling up to RM50/70/100. Now, you can even buy a box at <RM5 at Shopee from China Sellers.)
6. Increase of raw material prices (latex and oil). Oil prices have been on a tear , but unfortunately our oil related counters are not trending upwards. (another story)
7. Heck even our EPF is borrowing out the shares for shorters (SBL).
8. The doctor or nurses do not use any glove when administrating vaccine to the general public (yes, i personally see this when taking the vaccine at PPV)
9. Whatever negative news that might churn out to explain the downtrend.
In the end : The markets are controlled by the big players.
Disclaimer
This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock
The 4 Kings are TOPGLOV, SUPERMX, KOSSAN & HARTA: (not to be confused with Andy Lau, Leon Lai, Aaron Kwok & Jacky Cheung)
Fundamental good stocks with strong revenue and cash positions. However, those that chase these heavily promoted stocks at the high side would really need to hold long term in order to recoup. Not sure when it will happen though.
Line chart shows the average price of all the 4 Kings.
So many bad/negative news (examples) despite good earnings drove the downtrend. Never fight the trend! nor matter what. When it rains, it pours like crazy...
1. Export got blocked by US custom borders for labor practices
2. Failing ASPs
3. Possible more windfall tax (not a really good idea as this will scare off future foreign investors to our country. They are legitimate business, no point to punish them for running a business and making a profit. Even though the profit is super bountiful due to covid19. Heck the glove industry already "donated" like RM500 million previously)
4. Closure of factories due to their workers getting infected by Covid19
5. More competition for folks that jump into glove making bandwagon (i think this will be a disaster for those new entrants once demand drops to pre-covid numbers. Just take a lesson from face masks. At one point, a box of face mask was selling up to RM50/70/100. Now, you can even buy a box at <RM5 at Shopee from China Sellers.)
6. Increase of raw material prices (latex and oil). Oil prices have been on a tear , but unfortunately our oil related counters are not trending upwards. (another story)
7. Heck even our EPF is borrowing out the shares for shorters (SBL).
8. The doctor or nurses do not use any glove when administrating vaccine to the general public (yes, i personally see this when taking the vaccine at PPV)
9. Whatever negative news that might churn out to explain the downtrend.
In the end : The markets are controlled by the big players.
Disclaimer
This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock
Note
8/8/2021 - The bad news kept on coming out especially on TOPGLOVE , so the there no surprise that the stock prices for the 4 Kings is still on a downtrend after a small uptrend.Note
Still downtrending, if you think it cannot go lower..it can..Cannot fight with the TREND.
Note
More bad news as TopGlove announced lower than expectation of revenue and profit. Possible EU stricter rule to limit product made from "forced" labor. The price still below my arrow trend line.Note
Still downtrend with no bottom in sight as extraordinary earning normalizes. Start hearing IB giving lower price targets, is this the sign showing that the bottom is near?
Disclaimer
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