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For the past few months the Gloves industry is having excessive inventory, so they run on half the capacity increasing the costs, also lowering the sales price. They also have competition from newcomers started during the pandemic.
If we just look at financial reports, Supermax last quarter profit margin is just 5%, and mostly because of earning from the huge cash they have.
Given Top Glove already shows a bad Oct and Nov for glove, We can assume Supermax sales are bad too...
So you can conclude that the earning from operation for the next couple QR will be bad for Supermax, thus if you are looking for the technical, you should expect a high risk of down trend.
Since Supermax is not earning from operation, you can expect you are buying for the cash, which is RM0.70+ after debts, and expecting a reduction on cash in the coming QR.
Unless you are holding for 2year+, it's an expensive buy now. Also this is why the TP is at RM0.30+.
Thanks for your opinion Wei Low! Very good explanation: excessive inventory, increased cost, low sales & low profit margin. Means gloves experienced themeplay instead of true business fundamentals haha
just some open information, and it's good for value investment to spread a down trend analysis (but factual) to push the price down. But gambler probably don't like that haha.
Anyway, day traders can earn on a down trend, we can all earn together.
I doubt that China covid19 surging cases trigger widespread of medicine shortage then china had banned export of medical supplies in 2020. I wont suprise it will ban it again in 2023 when cases surges to the new high.
Wow one 4.50 and one 0.30. I doubt both of that will happen. Hopefully not 0.30. Overall looking at charts n prices, gloves looking good now. Havent bot into it but looking to buy some though
I rather play swing or fifo depending on counters behaviour… hold long long not really my type unless some consider it “stuck” then become a long term investor liow
Ahh if long term eg: fnn dlady i might hold hhaha.. those w less retailers counters or illiquid counters i will hold longer… those w many retailers aiming i prefer short term / swing / day trade.
Ya cant simply buy n hold, dangerous. Now market sentiment not to say very the good. Got money take lo… keep in pocket safer. I don wanna be “long term” investor lol
That's why I prefer to do scalping or intraday, unless the market sentiment is really strong, together with themeplay & fundamental. FA + TA + Market Sentiment is the best combo for swing trade, or else I would prefer scalping only
