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let them have their laugh 1st, when price drop will have a lot of ppl come out teasing, i don know the mentality. some even saying will drop to rm2. Supermax is expected to have 40-50eps next Q, means one year earn rm1.5 to rm2. even its not sustainable earnings, the company can use its cash to expand and diversify to other business. Supermax also did not spend all their earnings for share buy back, instead it used for expansion in US business. U shud be happy when the price drops!
all the big gloves production are affected by COVID19 infection and the production was affected, except for Supermax! However, u shud not expect there will be sharp rises like previous days as many retailers have been burned during this falldown! Always buy with cash and not contra, patience will be rewarded!! Good luck!
Hi, cheng.
Glad to see you on board, for your stocks are quite reliable. I bought a bit too fast last week at RM6.33 though. The reason I bought was I thought that Mr Market was too pessimistic on glove stocks recently & a rebound should come. PE is also reasonable. What are your reasons for buying?
Hi Benjamin, similar to your point and it is beginning to offer fair opportunity when it was selling below 5.50. The lower it gets from this point the more attractive it is. I personally do not expect Supermx to go back to its previous peak though and will be looking forward to lower my cost / zero cost if opportunity arises in order to hold it as long as it takes. Last 10 years business performance minus out the stellar performance of 2020 - the business itself offers approx avg of 10% net margin yoy, no issue with liquidity, debt being managed well, high single digit revenue growth%, positive ops cash flow and free cash flow at the back of strong capex. These track records seems to me that I can sleep well as long as entry price is not high. There is the prospects of expansion to US market via the made in US glove and I think it’s a good move. Just my opinions, could be wrong. Hope it helps.
