Koon Yew Yin 8 Dec 2020
Covid 19 pandemic is affecting every listed companies except medical gloves, medical product for the virus prevention and a few other products. As a result, the demand for medical gloves far exceeds supply and all the glove makers have been increasing their selling prices to make more and more profit.
For some mysterious reasons all the glove stocks have been dropping quite rapidly in the last few days. All the price charts are showing down trend which are encouraging more sellers. Even our famous Mr Ooi Teck Bee would not recommend to all his subscribers to buy glove stocks because they do not comply with his golden rule namely technical and financial analysis.
No wonder statistical record shows that 80 % of all the investors lose money, 10% can break even and only 10% can make money. Currently due to Covid 19 pandemic, there must be more losers and fewer winners.
Supermax reported EPS of 30.58 sen for its 1st quarter ending September. Its previous quarter EPS was 15.29 sen. It made 100% more than its previous quarter because the company could easily increase its selling price for its gloves during the pandemic.
Its 2nd quarter ending December its EPS should be more than 30.58 sen. Even if I assume that its 2nd quarter EPS is the same as its 1st quarter its earning for half year will be 61.2 sen.
It will announce its 2nd quarter result in mid-January 2021 which is about 5 weeks from now.
Its last closing price was Rm 7.70 per share.
All investors should be able to foresee 5 weeks ahead that Supermax is so much undervalued.
This opportunity is glaring in front of us. All investors should see this glaring opportunity to make more money.