Tuesday, June 25, 2013


If you are one of the glove makers share holder you have to read piece. very deeply researched and well penned.


Wednesday, June 19, 2013

Buying Kossan

If one wants to buy equity in Bursa Mlaaysia, he should not ignore the glove maker companies for they are doing so well in this field. I made a bad call on selling all the equity including Hartalega right before GE13 in betting that market would come to a correction mode during campaign and after GE13. It backfired. Hartalega skyrocket up to a unbelievable PE ratio of 20++ ( at the price of RM6.80 ). Bought Supermx and Kossan right and ignore Top Glove for it valuation is too much for me to swallow. Furthermore it's profit margin in among the lowest even though it has the biggest economic scale. The latest Top Glove financial result change my mind to change ship from Supermx to Kossan. It is a beauty contest. Top Glove and Supermx profit margin are trcking down hill while Harta and Kossan are increasing it's margin Q to Q. It sounds like Harta and Kossan has the ability to increase it's efficiency even though the industry is experiencing lower Average Selling Price for it's product. It the cut throat competition, one should opt for the  most efficient player. Harta is the best but it is too expensive is PE term. Betting Kossan for it's growth and the PE expansion. Bet it big.
Betting Cypark as well for it's latest Q show some improvement on receivable. Let's see how it goes.
Happy Trading.