Koon Yew Yin 30 Jan 2021
The Covid 19 pandemic is affecting almost all the listed companies except medical gloves, medical products for virus prevention and a few other stocks. As a result, all the glove makers can easily increase their selling prices to make more and more profit. Many Scientists predicted the pandemic will continue for another 4 or 5 years. All the glove stocks should be going up higher and higher for a long time.
Unfortunately, short sellers, fund managers and manipulators have been depressing the share prices of glove stock in the last 2 months.
Unusually Fund managers are holding many non-performing stocks and they are losing money. That is why they want to depress glove stocks so that they can buy at cheaper prices.
Fund managers do not recommend glove stocks especially Supermax. They are recommending speculative stocks so that they can sell their non-performing stocks.
Supermax just announce its 2nd quarter EPS 41.14 sen. Its 1stquarter EPS 30.58 sen, totalling 71.72 sen. I believe good fundamentals profit will prevail eventually. Supermax management mentioned their highest average selling price has not reflected in the 2nd qtr.
As I said earlier, the pandemic is affecting almost all listed companies. There are very few really good stocks to buy and many investors buy stocks based on rumours or on speculation.
The following are some examples of overpriced speculative stocks in comparison with Supermax.
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