Why must investors check their track records?

Koon Yew Yin 6 Oct 2020

If you have not made a few hundred percent profit from equity investment in the last 6 months, you must change your stock selection method and read this article carefully to know your mistakes.

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Almost every day, I receive buy recommendations of some stocks or ask for my opinion of some stocks or to participate in pre-IPO venture. For example; Property Developer Hil Industry Bhd. which has a unit called Hil Medic has received approval from the Ministry of Health for the manufacture of face masks and face shields.

A few days ago, someone recommended Prolexus, selling 90 sen and reported a big jump in EPS for its latest quarter of 13 sen from making face masks. Naturally the price has been shooting up higher and higher. Prolexus has been losing money in the last 2 quarters. I doubt Prolexus and Hil Medic can make face masks cheaper than those manufacturers from China, Vietnam, Cambodia and Thailand etc.  

To be courteous I have to spend some time to check and respond. My purpose of writing this piece is to save your time and my time so that we can take advantage of this rare opportunity to make a lot of money.  

The current Covid19 pandemic has been affecting everyone’s movement, all businesses, listed and non-listed companies with the exception of medical gloves and medical products for the virus prevention. As a result, the demand for gloves far exceeds supply and all the glove manufacturers are increasing their selling prices continuously to make more and more profit which are being reflected on their share prices. That is why each of   the glove stocks has shot up a few hundred percent in the last 6 months. 

I know for sure all the Investment Banks including EPF are losing money because each of them has bought a big basket of stocks before the pandemic. They would have bought stocks in Airlines, Properties, Constructions, Technologies, manufactures of some products etc.  

More gloves are required when vaccines are made available

Many investors of glove stocks have started to sell their holdings in view of the discovery of the vaccine for the virus prevention. Many scientists predicted the pandemic will take a few years to disappear. When enough of vaccines is made available to vaccinate 75% of the people in the world to prevent the spread of the virus, more medical workers would be required and all of them would require gloves. Moreover, it will take a long time to produce so much of vaccines and to vaccinate so many people. 

Obviously, the demand for gloves will continue to exceeds supply for a long time. If you have not been making money in the last 6 months, you must use all your funds to buy glove stocks and not on any other stocks. 

The best stock to buy is Supermax because it has the best profit growth rate as reported in its last few quarters. That is why its share price has been shooting up faster than Top Glove or any other glove stocks as shown on their price charts for the last 6 months.          

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