Here's my understanding to why RAM reaffirmed the high rating for Cypark's debt even though there's allegation that the Cypark as a whole and LSS3 projects are underwater. Giving Cypark the benefit of the doubt that there's no financial fraud commited, perhaps the projects will still generate enough cashflow to service the debt. However the remaining concern is whether there is any profit left for the shareholders. What I am trying to say is just because a debt is rated highly, it's not guaranteed that shareholders will benefit. What do you guys think?
The recent price surge is purely driven by irrational retail players who only know the fact that edgenta is in the healthcare business. The fact is edgenta mainly handles housekeeping in hospitals like cleaning bed linens and disposing clinical waste. So vaccine or not, it shouldn't affect edgenta.
We will probably see a reduced profit in the next quarter result, so it's likely that the management will cut the dividend payout, which will reduce the dividend yield. So replying to the fishing trip article, if the share price reaches rm4, the dividend yield will be way lower than 4% if the dividend is cut. Now this brings the question whether the share price will ever reach rm4 in the short term if there's a dividend cut.
It's likely that topglov will hit limit down tomorrow due to its current high valuation. But investors should take this opportunity to buy low because I believe the management will resolve this issue ASAP. Previously when Topglove got hit by a labour issue the share price quickly recovered, so this time might be the same.
Since Mr Ooi Teik Bee told all his hundreds of subscribers that he bought back all his Supermax shares, many investors have asked me whether they should also buy their holdings or not. My quick answer is “it depends on your trading skill”.
In the best case scenario, the world will get a vaccine by the end of 2020. But do you think people will be rushing to get themselves vaccinated? There are many people who are skeptical of vaccinination, let alone trusting a vaccine that is developed in such a short period of time. If the government makes it mandatory for everyone to get vaccinated, it might cause a huge backlash especially in the US
I don't understand why some people are so bullish about China's plan to increase production. Do you really think the world will order more gloves from China than Malaysia in the future? During the initial stage of Covid 19 when China was having a lockdown, the global supply chain was disrupted and I am sure businesses from every industry will start to diversify their supply chain and stop relying on China too much. For critical PPE like gloves, it is highly unlikely that China will dominate the market share of gloves in the future even if Chinese glove makers can undercut other players. Hence the future prospect of Malaysian glove makers should remain bright.
@mikeymouse hmm I don't think the reason that all big glove makers are expanding rapidly is what you stated. True, the demand for gloves is growing, but it's definitely not a rapid growth. I believe it's simply game theory. If Kossan didn't expand, then it will lose its market share to other glove makers that expanded. On the other hand, if all glove makers expanded, then it would create oversupply in the short run and everyone suffered from compressed profit margins. So either way, Kossan would see some negative impact in the short run.