tag:blogger.com,1999:blog-17708300.post4548560127132784452..comments2023-10-25T21:25:46.183+08:00Comments on Where is Ze Moola: Bargain Hunting For Rubber Glove Stocks?Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-17708300.post-37719066913000023362010-09-17T19:19:29.216+08:002010-09-17T19:19:29.216+08:00KNM? LOL! LOL! I refuse to say anything. :P
Zelan...KNM? LOL! LOL! I refuse to say anything. :P<br /><br />Zelan? There was a 'valid' reason not too long ago cos Zelan's stake in IJM was worth a lot of moola!<br /><br />On one hand, it needs to raise the cash... which makes the stock attractive.<br /><br />On the other hand, we all know why it needed to raise cash. :P<br /><br />:DMoolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-84235090271397329722010-09-17T19:01:24.134+08:002010-09-17T19:01:24.134+08:00Yup, you are right.
If I am a Ang Mow and here,...Yup, you are right. <br /><br />If I am a Ang Mow and here, I would need a local guide for quick sighting. Similarly, I am trying to think very very hard is there any possibility of insider trading?<br /><br />Why so sudden, Paul Singer's Elliot can spot KNM and GMV on Zelan? My question is they are such a big fund and do you want to be here??? Maybe I am just a lousy thinker....solomonhttps://www.blogger.com/profile/15373632232861592746noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-11967405318288302502010-09-17T18:54:19.383+08:002010-09-17T18:54:19.383+08:00And oh.. on the gloves.
The leaders of the sector...And oh.. on the gloves.<br /><br />The leaders of the sector were rewarded extremely well for their out of the world growth.<br /><br />Now issues have cropped out and if the slowdown really hits, I do reckon that things could get really arrrrgleeee real fast.<br /><br />:PMoolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-26239419235629707362010-09-17T18:47:10.767+08:002010-09-17T18:47:10.767+08:00Have you considered the fact that there's the ...Have you considered the fact that there's the small, small possibility that not all internation funds are smart.<br /><br />I remember the case of one so-called 'value' fund. It invested in MMM back in 2002 or 2003. :P<br /><br />Or how about the notorious GS funds buying and then dumping shares for a quick profit? <br /><br />:PMoolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-68013835500090438032010-09-17T17:34:27.001+08:002010-09-17T17:34:27.001+08:00When take a look back to the PE chart for the last...When take a look back to the PE chart for the last 10 years, I think this sector had now at its peak. Barring any new virus discovered, I think a dip is not impossible.<br /><br />Moolah, I am just crious why some International hedge funds (like Elliot and GMO) are looking at our Equities, are they making quick bucks or genuine good investment opportunities here? A pre-sign of Ringgit internationalization?solomonhttps://www.blogger.com/profile/15373632232861592746noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-16622802181253764822010-09-17T08:20:06.477+08:002010-09-17T08:20:06.477+08:00This is a very volatile sector.
During 2007 and 2...This is a very volatile sector.<br /><br />During 2007 and 2008, this sector faced many challenges - increasing energy costs, lower revenues, varying latex prices, overcapacity (some shifts were stopped), and price competition.<br /><br />In 2009, the sector had a remarkable turnaround. Revenues increased hugely (due to replenishing of low inventories by buyers and also increase stocking in anticipation of H1N1 epidemic). There was a period when production was unable to cope with the demand. Energy cost stabilized. Glove companies were able to shift cost to buyers and enjoyed margin expansion from the average of 7% or 8% previously, to 13% to 18%.<br /><br />This sector is again facing a lot of headwinds NOW. The new production capacity may have narrowed the gap between the supply and demand, perhaps, exceeded. Latex cost is up. There will always be the uncertainty regarding energy cost. The Malaysian ringgit too has strengthened significantly. <br /><br />Much of the super-profits of the glove companies recently were mainly derived from margin expansion, besides volume growth. <br /><br />Will this industry be able to maintain its super-profit margin as the business environment becomes more challenging? <br /><br />Will the volume of gloves demanded continues to grow and at what rate?<br /><br />Gloves are disposed after use. Those industries using gloves will continue to replenish their supply. The world demand for gloves will certainly continues to grow. The glove companies continue to open up new markets and entice new glove users. A pair of glove is 'dirt cheap' still, as evidenced by the users willingness to throw away the first pair for various reasons, replacing this with another new pair.<br /><br />Which glove company to invest into for those who fancy this sector? Perhaps, it is the one whose cost of production is the lowest, assuming equal quality of the gloves produced. The bigger glove companies do enjoy 'some' economy of scale. It is also important to go for the company that can grow its capacity without taking too much risk (debt). Above all, this is a sector where management skills continues to be tested (c.f. TG, Supermax, Hartalega, Kossan, Adventa, Latexx).<br /><br />...to be continued..investbullbearhttps://www.blogger.com/profile/08012146712936776873noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-18125902787524949282010-09-16T21:44:26.800+08:002010-09-16T21:44:26.800+08:00CIMB's top pick for the small mid cap sector i...CIMB's top pick for the small mid cap sector is Latexx. This glove company's soared to RM12 about 12 years ago only to crash to RM1.ronniehttps://www.blogger.com/profile/02874940085203831073noreply@blogger.com