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Thursday, 31 December 2020

(Tradeview 2020) - Year-To-Date Portfolio Return 56.3% as at 31st December 2020

 



Dear fellow Readers,

2020 which was supposed to be a fresh start of new decade has brought about a rude awakening for all due to the pandemic that swept across the globe. Global economies pummelled, unemployment piled up and importantly many lives were loss. This was no ordinary war. It was a war against a lasting pandemic. Looking back, it is truly a difficult year for everyone. As a natural optimist, I believe there is a silver lining to everything. Looking on to 2021, may it be a better year for all be it in life or investments in the stock market.

As in the past years practice (5 consecutive years now), I have always shared my performance with the sole purpose for transparency and accountability. This is the updated results as of end of December 2020 for my personal record purposes. 
This is just a simple periodical report to keep track of the progress of my write up. Feel free to cross check my public comments or article posting date as reference. 
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*When it was written YTD ending 31st December 2020 : (Gains exclude dividend) 

1. Oriental Holdings Berhad - On 6th May @ RM 5.03 vs Present RM 5.47 (8.74% Gain) 

2. Riverstone Holdings Ltd - On 5th March @ 43.5 sens (post bonus issue adjustment) vs Present $1.11  (255% Gain) 

3. Sri Trang Agro - On 16th August  @ $ 1.21 vs Present $ 1.16 (-4.2% Loss) 

4. MFCB - On 16th March @ RM3.40 & 22nd August @ RM 7.35 (combined both) vs Present RM 6.90 (28.4% Gain) 

5. Hartalega  - On 19th September @ RM 14.16 vs Present RM 12.14 (-14.2% Loss) 

6. Peterlabs Holdings Bhd  - On 10th December @ 24 sens vs Present 23.5 (-2.08% Loss) 

7. DKSH Bhd - On 5th March @ 2.55 vs Present RM3.39 (32.9% Gain) 

8. CCK Bhd - On 5th March @ 47 sens vs Present 62.5 sens (32.9% Gain)

9. OCK Holdings Bhd - On 5th March @ 53 sens vs Present 45 sens (-15.1% Losses) 

10. RCE Capital Bhd - On 5th March @ RM 1.64 vs Present RM 2.75 (67.6% Gain) 

11. GCB Bhd - On 12th March @ RM 1.85 vs Present RM 2.67 (44.3% Gain) 

11. Pintaras Jaya Bhd - On 12th March @ RM 2.50 vs Present RM 2.70 (8% Gain) 

12. Scicom Bhd - On 19th March @ 52 sens vs Present 93 sens (78.8% Gain) 

13. RHB Bank Bhd - On 19th March @ RM 4.40 vs Present RM 5.45 (23.8% Gain) 

14. Pentamaster Bhd - On 19th March @ RM 1.85 (Post Bonus Issue adjustment) vs Present Post Bonus Issue RM 5.05 (272.9% Gain) 

15. Public Bank Bhd - On 19th March @ RM 13.10 vs Present RM 20.60 (57.3% Gain) 

16. QL Resources Bhd - On 19th March @ RM 4.60 (Post Bonus Issue adjustment) vs Present Post Bonus Issue RM 5.80 (26% Gain) 

The Average Portfolio Gain Year-To-Date 31st December (Based on equal shareholding weightage but excluding dividend gain which means actual return would be higher) : 56.3% Gain beating the KLCI Index YTD Return of 2.42% Gain  

To date, it is 12/16 winners against losers. Should you are keen to follow my writings, there are 4 ways to do so. I usually share my writings :

If you are keen to learn how to invest the right way and navigate the stock market, feel free to contact me at [email protected] to sign up. Please note, I am a fundamentalist, not a short term speculator or punter. If you are looking for a quick trade, I do not provide such services. However, if you would like exposure to a sound investment education to build a sustainable long term investment portfolio, feel free to reach out. Thank you. 

Regards, 

Tradeview 

**Please note this is not a recommendation to buy or sell. It is also not an investment opinion or advice. Please seek professional advice when considering risk and making investment decision. I am not a "Guru" but I am a passionate financial writer who enjoy fundamental investing including the joys and sorrows that the stock market brings. The above mentioned stocks' price were based on the prevailing market price during my first mention in my writings. The record above is based on the assumption of a full YTD portfolio returns on a fundamental investing strategy of buy and hold.

Thursday, 24 December 2020

Tradeview Commentaries - To Glove With Love, Merry Christmas

     



Dear all, it has been difficult year for most. It is especially tough for the B40 and those who have lost their job or had to undergo a salary cut / VSS. In these trying times, many struggled to get by and provide for the family. Even those with emergency funds set aside (The rule is minimum 6 - 9 months saved for rainy days) would probably have dried up by now in the event one is not able to find a job or for business to return to normalcy. Such is the state of the economy in the face of adverse pandemic circumstances. This is truly a shocking start to a new decade. 

During the height of the pandemic, I was having a meeting with one of the listed Singapore glove makers. It was a work meeting but I had the chance to ask him "how do you feel that glove stocks are now deemed beneficiary of Covid-19". He said "no money in the world, can replace the lost of loved one or having to see your love one suffer due to sickness, if I had a choice, I would like to see the pandemic end yesterday." 

In another interview with the IR present, my close friend who is a research analyst had a management meeting with one of the big 4 glove makers' son. During the management interview, my research analyst friend asked "why is your company increasing the ASP for gloves at much slower pace than your competitors?" The answer given simply "Gloves are PPE, which is meant to protect front liners and end users against this deadly pandemic. If we were to hike ASP of Gloves too arbitrarily, and in turn our distributors do the same, the one that suffer would be the end consumer. Those who can afford, it is ok. Those who cant afford, will then switched to alternative self-made PPE which are not effective against this fight."  

Both of these true stories was a humbling experience to me. It made me respect both glove makers entrepreneurs more and learnt that not all business was about profiteering or bottom line. There are entrepreneurs and owners who cares. This is probably due to the fact both of these founders did not come from money and build their business from ground up through hardship of life and poverty. They are rare but they do exist and they placed the importance of the welfare of their employees, end users far above even that of shareholders or investors like me. Ironically, my investment philosophy being a fundamentalist is choosing companies like this which has management that values employees, customer relationship as part of my investment portfolio. I always tell my readers, I rather pay a premium for wonderful management of good companies than pay cheap price for ordinary companies. 

It has been a whirlwind year for those who invested in the stock market be it out of passion, interest, need, desire or simply opportunity. I believe with the record high retail participation rate, many who invested in the market is because of the glove makers. I also know many institutional funds, retail investors and foreign funds have many a handsome profit from investing in glove stocks. EPF too, recorded commendable investment income from equities which would definitely go to help towards those who need early withdrawal from iSinar & i-Lestari programmes. 

I did mention I have written too much on the sector even though Glove stocks are only part of my all weather diversified portfolio. There are 2 reasons I am writing this article today : 

1. To give my gratitude to the glove sector as I did benefit from the stellar performance in share price like most others through 2020 and also the lessons learned from the glove sector be it in life and investment. I am actually very proud as a Malaysian that the glove sector can play a role putting Malaysia in international limelight in the fight against Covid-19. For once, not everything used by global population was manufactured in China or Vietnam or India but Malaysia.

2. Is to correct a misconception in today's news article below by the Executive Editor of Focus Malaysia, Mr Cheah Chor Sooi, who selectively highlighted one paragraph from my 14th December 2020 commentaries, calling it "Deceitful". I do not know you Mr Cheah, and I have nothing against you. But if you had the chance to read my blog, and all my past posting be it glove or non-glove related (I think there is no less than 50 articles in 2020 alone), you would probably realise I built my reputation over the past 6 years on transparency, accountability and objectivity. I am not some fly by night writer. My belief is not very much different from you who was an award winning Writer of the Year by Minority Shareholders Watchdog Group’s (MSWG). Of course, I am no where as successful as you, I am just a financial blogger.  

You probably did not like the fact that my "Friendly Advice" came across as a generalisation that there is a concerted effort by various parties including the media to witch hunt the glove sector. I actually do not think there is a concerted effort by anyone. I only seek fairness, objectivity and no double standard in scrutinising across all industries. I cannot blame you as you probably didn't read my past writings. If you did, you would know I have been critical of Top Glove handling of labour issue and Covid-19 outbreak. If you did you would know that my favourite glove stocks are Hartalega and Riverstone which are my Long Term Value Picks who are true champions of ESG. If you did you would have read my letter published in Nayang calling out Koon Yew Yin's call on Dayang in view of protecting the small retail investors. If you did read my writing properly, you would know I am not absolving any law breakers of responsibility but if scrutiny is imposed it should be fair across industries like plantation, construction, steel, agriculture. 

I am an independent, objective writer who have firmly said NO to offers by syndicates to "goreng" stocks for pump & dump operations because I care very much about the little guys (retail investors) and hope the stock market can be an avenue for the pursuit of happiness just as it has been to me. I believe you are a reasonable man. Just as you do not like media being called out as bias or sensationalising news on the glove sector, I do not like being called "Deceitful" by you. It is a wrong choice of word unsubstantiated by facts. I would like to put it to you, personally, I have utmost respect for journalist, nurses and teachers who have the most underpaid but noble profession in the world. However, if having an objective, independent and differing view from you is regarded as "Deceitful" in your context, I would gladly stand firm in my belief and take it on over and over again. 

Merry Christmas and May 2021 be a better year for us all.  


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Food for thought: 
















Monday, 14 December 2020

Tradeview Commentaries - A Time of Reckoning & The Battle of Titans

    





Malaysia is a blessed country with abundant of resources, human capital and potential. Before the Asian Financial Crisis of 1997 / 1998, Malaysia was regarded as a "Tiger Economy" and even Bursa (then known as KLSE) was the third largest stock exchange by value after Tokyo and Hong Kong Stock Exchange. Today, countries which were once behind us have surpassed our country in terms of economic strength, competitiveness and stability. Countries such as China, South Korea, Taiwan, Singapore are far ahead with Vietnam, Thailand and Indonesia catching up. Thankfully, Malaysia still have strong economics fundamentals laid down from our forefathers with SME forming the backbone of the economy. However, with the Covid-19 pandemic onslaught, SME segment was badly impacted with SME association forecasting close to 100,000 to shutter or on the brink of closing down by end 2020. Official figures from SSM shows 30,000. The huge discrepancy is likely due to the delay in official reporting.  

The stock market has however performed extremely well comparing to regional peers throughout the year. At today's closing of 1662 points, Bursa is up 4.66% YTD. This is unbelievable considering what is actually being felt in the real economy. I think regulators like BNM, SC, Bursa has done well to support the stock market. Another major reason is because Malaysia is blessed with a competitive Technology and Glove Sector which sustained our stock exchange during the triple whammy of oil price crash, government change and Covid-19 pandemic. 

In fact, thanks to glove makers, Bursa, hit record high retail participation and attracted some foreign investments. Of late, due to the announcement of vaccines such as Pfizer, Moderna and its ongoing rollout, the healthcare index took a beating especially the glove and tech sector. The rotation of funds from growth to value stocks and beat down laggards was swift. Banks, Steel, Construction, Telco, Plantation, Tourism, Oil & Gas rebounded strongly while technology and glove stocks was hit The market rally has drawn continuous retail participation, comparable to local funds and more so than foreign funds. This has kept the stock market lively and vibrant with average daily value above RM 4 billion. 

This spectacular stock market rally can be seen all over the world, not only Malaysia. However, it is impressive considering our country went through an unprecedented regime change midterm. I believe this would not be possible if not for the strong retail participation and remarkable earnings performance which led to share price ascend of glove makers. If we were to look at the entire stock market of Bursa today, the only sector with strong earnings visibility and sustainability is the glove sector. Nevertheless, the sector has been thrown into the limelight for good and for bad. Praise were given for their contribution to the world supply of gloves in the battle against Covid-19 (65% of market share globally), resolving PPE shortage. Criticism being zoomed in on labour issue, Covid-19 outbreak in workers hostel, welfare and extraordinary windfall in income. I have covered various angles of glove sector in the past 9 months and do not want to repeat further. I have however, a friendly advice to fellow readers who are either in the investment banking research fraternity, media or authorities / politicians, in everything we do in life, be fair, reasonable and objective. Do not make judgments, comments or opinions with a coloured lens. The glove sector of Malaysia is one which should be proud of. I know these days any articles or news on glove sector attracts huge number of views. I know it because I can see the statistics in my blog & channel. Do not for the sake of attention and populist agenda destroy an entire sector that was organically grown through entrepreneurial spirit, hard work and grit. This sector is a golden goose of our country. We must preserve, protect and help improve it.

Today, Tun Dr M and Tengku Razaleigh join hands during a press conference to share their advice input on the state on the nation including potential hint on tomorrow's Budget 3rd & final reading where a vote will be required of all 222 MP. This has led to last minute selldown of the market close to 1.3%. I believe the stock market will continue to be impacted and profit taking will continue across the board until a political resolution is in place or the budget 2021 is passed without hiccups. For investors, be prudent, hold sufficient cash and do not chase blindly. Avoid loss making stocks, whatever recovery theme it may be & focus on earnings or yield as your north star in these foggy times ahead. If you do that, I believe the worst will pass and eventually, you will see the light again.  

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Food for thought: 














Thursday, 10 December 2020

(Tradeview 2020)- Long Term Value Pick 6 : Peterlabs Holdings Berhad, My Gratitude Stock

   





Dear all, thank you for the support as Tradeview Public Channel has broken 6000 followers today. Maybe to some it is an ordinary feat but to me, I am very thankful for the interest in my writings. To be honest, as a writer with a fundamentalist investment philosophy, this journey was hard as it is extremely tough to build up readership interest or following because of the society's general tendency towards instant gratification, quick returns and "get rich now" mindset. Most would know I never write or advocate loss making penny stocks or companies with bad fundamentals however "beautiful the chart / headline news". This is because I believe strongly that investing in the stock market is a long term endeavor to built wealth over time, not a one hit wonder which disappears after the hype. This mindset have served me well through the years. 

Whether it is the 1920s or today, the stock market has captured retail investors imagination. This is particularly apt in 2020 as Bursa records historical highs due to retail investors participation which filled in the void of close to RM 23 billion of foreign funds net selling for the year. When most said the end of loan moratorium means the significant reduction of retail participation, it would appear experts undermine the retail investors' enthusiasm & appetite for the market. The market continues to rally with local funds playing mere supporting role, foreign funds selling, and retail investors buying. However, to err on the side of caution, please remember to be very careful in your stock investments especially in a heated market. Avoid loss making penny stocks and news driven stock plays. The outcome is highly dangerous & risky. One wrong pick can wipe a year's effort.

To thank everyone for the continuous support especially those who have been with me since I started writing publicly 6 years ago, I would like to share publicly a small cap fundamental stock which meets the criteria a strong balance sheet, earnings track record and good growth catalyst. Whether there is big cap, mid cap or small cap stocks, there are good companies in Bursa worth considering over speculative plays. The stock I am referring to is Peterlabs Holdings Berhad (Peterlabs). Peterlabs is in the business of manufacturing animal health products, animal nutritional feed additive and veterinary pharmaceutical to serve the livestock industry.  It is one of the rare small cap stock with continuous growth in revenue, earnings track record, consistent dividend payout, healthy yield, professional management and net cash position. Recently, they have moved to acquire 60% stake Thye On Thong Trading SB (TOT), which is an established distributor of notable consumer goods / daily essential brands with more than 30 years history. The terms of the M&A is fair and synergistic (including for distribution of Peterlabs products). I like it because of the profit guarantee and commitment by existing owner of TOT to continue to be a part of the business with a 40% stake. 





Apart from the general considerations, I like the stock despite the small outfit is because of how well it is managed. The CEO of Peterlabs, Mr. Lim Tong Seng has accumulated over 33 years of experience in the livestock industry, mainly in the animal health and nutrition sector. Mr Lim’s career in the livestock industry began when he joined the feedmill division of Industrial Farm Pte Ltd in 1978 as a Feedmill Executive. In 1984, he assumed the position of Production Executive at Agrinuser (M) Sdn Bhd, a feed additive premix manufacturing company. In 1989, he founded Benuser and spearheaded the company’s operations in manufacturing various feed additives and premixes for the livestock industry. In 2002, Mr Lim left Benuser and co-founded PeterLabs, Osmosis Nutrition and PLON Synergy together with two (2) directors from Chern Tek, namely Teo Chin Heng and Dr. Teo Kooi Cheng. 


When a management is technically strong, that is an added bonus. Having knowledge in the industry means the company is not a fly-by-night operations run by cowboys. To begin with, most loss making penny stocks in Bursa have this problem hence my apprehension in looking at micro cap stocks.  However, after an in-depth study of the company, it gives me comfort to invest in Peterlabs. Buying into a company is equivalent to buying into a management. If you do not trust the management, do not buy the company. 



The operating cashflow is healthy with RM12 million (42% increase YoY) likely due to improvement in receivables collection as well. The earlier private placement exercise (share price issued at 20.6 sens has also contributed to a strong balance sheet with cash amounting to RM27 million (net cash RM22 million) which stands at 0.49x of the total market capital. With a strong balance sheet and generous management, the dividend payout has always been rather consistent for the past 7 years except FY 2019. However, management did compensate with a higher dividend payout for FY 2020 which comes up to 4.16% yield at current market price of 24 sens.

To be honest, Peterlabs has always been a consistent feature in my portfolio. I have held it through the years and revisiting now is because of the new growth catalyst which will provide immediate term earning visibility at least for the next 2 years. This is the acquisition of 60% stake in TOT for a sum of RM 3 million in cash and issuance of  39 million new shares to TOT owner at 20 sens making the full payment consideration to be RM 10.8 million. This is good method of acquisition as it ties the interest of TOT owner with Peterlabs. Furthermore, the owner of TOT would not be silly to accept purchase consideration in shares if he is not confident with the prospects of the deal. A good indication for shareholders is the price tag of issued shares of 20 sens forms the base as well for the stock. This takes care of the downside for investors.

All companies have some risk factor and for Peterlabs, it would be the cost of materials which is imported to be used for manufacturing the end product. It means a weak Ringgit will cause margin compression due to higher forex impact (importation cost). On the contrary, a strong Ringgit will help lower cost of raw materials and enhance margin. MYR has been strengthening for the past few months and if this trend continues, Peterlabs margin would improve.  

At current share price of 24 sens, I am of the view the share price is still undervalued and there is more upside because of the past track record combined with the future potential. Although I am of the view that near term impact on the core business would still exist due to MCO / pandemic aftermath but based on my calculation, the valuation should be in the range of 30 sens taking into account of at least RM 4.5 million of guaranteed profit in the next 2 years as per the acquisition deal. 


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Food for thought: 














Tuesday, 8 December 2020

Tradeview Commentaries - "Risk On" For Financial Markets?

  



Record high for Dow, SP500 and Nasdaq last Friday was a huge boost in confidence for participants of the financial markets. The global stock market participants are clearly risk on, with bullish mode and relying on a abundant of reasons to justify the rally. 

1. Liquidity due monetary policies of central banks around the world

2. Vaccine optimism and potential economic reopening 2021

3. A hopeful new Biden era ushering multilateralism and ending of trade wars 

4. Weakening USD and rebounding of commodities market

5. Inflow of funds into emerging markets 

Cumulatively, all these are strong reasons for a bull market. Locally, even KLCI Bursa closed at 1622 today with 16 billion in volume and 7.2 billion in value, erasing losses for the year to close above January 2020 levels. All naysayers which said if Trump is gone, stock market and economy will collapse are now proven wrong. The big question remains is whether the rally is sustainable? There ought to be some correction, no?

Whether we agree with the stock market rally or not, it doesn’t really matter anymore. The stock market and the larger economy is clearly at a disconnect. This is the effect of releasing large amount of liquidity into the economy. Although our government coffers are limited, our country monetary policies consist of loan moratorium, SOCSO, and EPF 1 & 2 early withdrawal. This is akin to bringing forward future earnings / income to the present. Raising debt ceiling and borrowing more to spend now to spur the economy is what's being done by most governments. This has structurally change the stock market direction. It can be seen from the banning of short selling, extension, holding back on force selling, the stock market is being prop up by agencies.

The worst in terms of the stock market is definitely behind us. Nothing can be worst than "March Plunge 2020" when Covid-19, oil crash and government change happen all at once. The strategy forward, should simply be to have 30% of cash on hand at all times (in case of any untoward incidents like sudden General Elections), buy into fundamentally sound stocks with minimal debts or net cash and not to get ahead of ourselves or too gung ho on recovery stocks especially loss making stocks. Sell into strength for stocks that hit TP or exceed Fair Value. I will maintain this strategy going into 2021. A gentle reminder to be careful of loss making companies especially penny stocks that are making announcements on deals / vaccine related plays etc without basis. 

As for the Glove stocks, it will remain a solid feature in my portfolio. I believe unequivocally it will rebound and the current levels are close to the bottom. There are no better value stocks in the market currently in terms of earnings, yield, balance sheet and outlook. Those who thinks otherwise, is making a mistake ignoring fundamentals. 

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Food for thought: 














Tuesday, 1 December 2020

Tradeview Commentaries - The Glove Dilemma

 







I am quite hesitant to write another glove commentary as I believe that my earlier article on "Yield Will Protect Gloves Share Price From Falling Further" would have  ease investors' concern on the sector. Shortly after I wrote the article, Top Glove Chairman during the press conference mentioned Top Glove yield is expected to be more than 6% in FY 2021. Later on, a clarification statement to Bursa by Top Glove indicates the yield would be 8% based on Bloomberg consensus forecast in earnings and existing 50% dividend policy. This is in line with my forecast of Top Glove's yield and by extension it provides a good guesstimate of FY 2021 performance for the glove sector as a whole. Even recent Comfort Gloves results was unbelievable. 

After Top Glove conference, it attracted investors interest for awhile. Sadly, it was short lived as the share price for Top Glove stabilised before the issue of windfall tax was raised again by  politicians before the Minister of Finance closed the topic for good. As the glove stocks was finally showing some colour, the continuous Covid-19 case reports and subsequent Labour Department raid for Top Glove Ipoh dorms dampened sentiment further. This led to opening of an investigation paper when the law was said to only take effect next year under a new act by the Minister of Human Resource himself in the media.  

With all these avalanche of bad news impacting Top Glove, it would be very normal for the share price of glove stocks to be impacted and underperform. This negative sentiment will naturally spill over to other glove stocks for fear of similar kind of targeting by Ministry of Human Resource / Labour Department. If indeed Malaysia's Labour Law and Labour Department is fair and efficient in their inspection or enforcement, I believe this issue would not only be applicable to the Glove Sector but others such as Plantation, Construction. 

The glove stocks share price movement has nothing to do with trends, fundamentals or earnings performance anymore. It comes down to only 1 important factor -  Confidence. Investor Confidence, Consumer Confidence, Business Confidence are all key driving forces that moves the machinery of the economy forward. In the stock market, investor confidence is the most important. If there is no investor confidence, it is  hard for the share price to perform. Investor confidence is a qualitative factor that is tough to quantify via common financial analysis. 

I am by no means absolving Top Glove of their responsibility in providing a good accommodation, welfare and environment for their foreign labourers. Top Glove who always tout themselves as the world's largest glove manufacturer with 26% of world market share should have taken preemptive measures to ensure such problems are rooted out from their system in entirety. Top Glove not only represent the country's proud glove sector, they also put Malaysia on the map. This would be a painful but good learning experience for the company. I believe Top Glove will come out a better and stronger corporation after this string of incidents.

Most know that I am  believer in the glove story, as it has growth, fundamentals and importantly the scale of a global market to do well continuously. I have written many articles on the sector and although my top picks of the sector has always been Riverstone and Hartalega, I still deem Top Glove as a very sound company. In fact, I think companies like Sri Trang, Kossan, Supermax, Comfort, UG Healthcare are strong. Many regard the glove companies as "lucky" to benefit from a global pandemic. A prominent politician even call it "Durian Runtuh". I beg to differ. Luck is when preparation meets opportunity. The glove makers that survive from intense competition of over 300 players in a crowded sector in 1990s to only 45 world class players today is no mean feat. They did so through sheer grit, hard work and innovation with no direct subsidy or bail out from the Government of Malaysia. In addition, they contribute significantly to employment opportunities and tax revenue & levy to the company. Latex glove makers also help the dwindling rubber planters and Nitrile glove makers drew foreign investment like Great Britain's Synthomer to Malaysia. Even Petronas is venturing to Nitrile Butadiene (raw material for glove industry) seeing the huge potential in the industry. In a nutshell, the glove sector despite this period of negativity is a sector we as Malaysians should be very proud of. We have no FAANG corporations in our country, but we have these glove giants. 

So if you are in a dilemma whether to hold glove stocks, I just have this to say - "It cant get any worst than this". Vaccines, Covid-19 cluster, investigation / fine by Labour Department, US Customs Detention, windfall tax rumours, pretty much anything you can think of has been thrown at the sector. The glove sector will survive just as they had done so for the past 30 years. There is no fundamental or structural change to the companies. It is because of negative headlines, local funds who have met their KPI for the year and not taking  positions to support the sector, and retail investors who lack the confidence to invest in the glove sector contributed to the weak share price movement. When all these negativity blows over, local funds will have to chase yields and returns, retail investors will become bold again, the glove stocks are naturally the most attractive to keep in your portfolio. Hopefully this  help clear some of your doubts. 


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Food for thought: