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Kevin is absolutely on point. On paper, more ambitious Capex plan sounds like better prospects. That is not true. Careplus had to sell half its glove business away because nobody wants to buy its low quality gloves, and no one heard of it. Ansell is needed to help Careplus sell gloves. Even if Careplus succeeds, it only controls half of the business. So even if Careplus sells 10 billion gloves vs Comfort 5 billion, it is not going to make more money than Comfort.
Add to that, comfort sells specialty gloves, which will not be affected by rising medical glove competition. And it also can expand its medical glove business, but it is not as reckless as Careplus. Moving to majnboard won't increase your premium. So Careplus at the end of the day is Garbage
I foresee when the quarterly result out/ posted, Careplus will drop ; then I don’t know drop 20% or 30%.... coz drop how much depends on market sentiment ...
U can check back 9-12 months ago news , careplus did sell half of the production capacity to Ansell from that article ( if I m not mistaken n remember correctly ); after selling the previous production capacity then seems like they having new addition lines to produce more gloves ... if this quarter also same flat profit n revenue , confirmed careplus had sold half of the production capacity....
You are right, I just realised Joint Ventures are proportionally consolidated, not reported as a separate entity. I mistaken the Proceeds from associate as the subsidiary.
Careplus having the problem of too small as manufacturer, don’t need to spend time to study ; 2 quarter of flat profit already showed she sold out the production capacity ( even thought I don’t know that sold out about 50% or 25/30% of her previous production capacity)....
Not true, the market is a weighing machine in the long run or as Kevin said 6 to 9 months. So far, it has been fairly efficient in bringing glove stocks down to their fair values. If you cannot understand the concept of fair value, you will always lag the market. Kevin and I are not fortune tellers, but we have much better prediction than TA practitioners because we are forward looking