Most of research houses are bullish on rubber glove sector as global demand is increasing from 8-10 percent.
TopGlove has recently announced to acquire some companies in this region as part of expansion program.
Latexx will have JV with Ducth company to operate plant and distribute product for Europe market. They will produce protein-free glove for medical usage.
Kossan will increase their output by 20%.
Due to rising demand all over the world, share price of glove companies were increasing and the target price as reported below;
Company Target price Current price
Harta 11.24 7.34
Latexx 5.44 4.84
Supermax 7.96 6.09
TopGlove 15.9 11.76
We optimistic that, while the price moving to achive the target, the profit taking will take place thus will temporarily push down the price. Investor can take this opportunity to buy and sell when rebound if you can’t wait the price to meet the target.
Dubai financial crisis has affected our stock market on 30 November 2009. Counter related to Dubai project were affected. What is advise of OSK on the said counters. Read the article below;
Good time to buy shares of contractors: OSK
THE recent share price retracement of Malaysian contractors should provide a good chance to accumulate, said OSK Research.
OSK, in its research note, said it expected a continuous positive news flow fuelled by more domestic contract awards with the Low-Cost Carrier Terminal project the first to take off with the earthworks package awards.
"We see the recent share price pullback as an excellent opportunity to accumulate and will retain the 'Overweight' stance on the construction sector," it said.
OSK said share prices of Malaysian contractors had declined in the past week on interest rate increase and currency devaluation in Vietnam as well as the Dubai's debt issue.
It said among the counters affected were Gamuda Bhd, which fell by 9.7 per cent, IJM Corp Bhd (3 per cent), WCT Bhd (6.3 per cent) and Mudajaya Group Bhd (8.6 per cent).
OSK said the rate increase and currency devaluation were likely to weaken sentiment in the Vietnamese property market in the short term.
"However, we believe long-term prospects in the Vietnamese property market will remain positive, underpinned by the nation''s robust gross domestic product," OSK said.
It said the Dubai issue would not impact Malaysian contractors much given the minimal exposure, with only IJM undertaking a RM126 million contract for the Fortune Executive office towers.
"Meanwhile, WCT-Arabtec joint venture is undergoing arbitration, which is expected to be completed by end-2010, with Meydan LLC in Dubai for the Meydan Racecource termination," it said.
OSK said LCL, however, was highly exposed as it has 85 per cent of its orderbook exposed to Dubai. -- Bernama
Hai-O which involve in medicine business is expected to hit RM8.80 as their business is expanding to Indonesia. Profit taking aktivities happening today which propel Hai-O to lowest. Be contrarian for this stock is better to reap profit. By the way read the report from Theedgedaily.com as below:
KUALA LUMPUR: Shares of Hai-O Enterprise extended their losses in late afternoon trade on Friday, Nov 20, falling to a five-week low of RM6.93.
At 3.23pm, the shares were down 27 sen to RM6.93, the lowest since Oct 15.
On Thursday, the shares fell 46 sen, the biggest one-day loss in recent weeks, as investors started taking profit after the run-up in the share price.
Hai-O is a manufacturer and wholesaler of traditional herbal and pharmaceutical products.
In late October, a local research house increased the indicative fair value for Hai-O to RM8.80 from RM6.80, based on higher price-to-earnings ratio (PER) of nine times CY2010 earnings per share (versus eight times CY2010 earnings oer share previously).
This is a 38% discount to the research house's target PER for the consumer sector of 14.5 times due to its smaller market capitalisation as well as low liquidity.
The higher PER target, the research house said, was to reflect increased investor participation in mid-cap stocks,a lower risk premium and improved market sentiment.
You might know who is Warren Buffet. He is a greatest stock market investor in the world. He also one of the richest man in the world. What he said about current the stock market? Can we invest? Read the article below;
Buy attractive stocks, they say
NEW YORK: Capitalism is still alive and well, say the world's two richest men, despite lingering shocks from the longest, deepest recession since the Great Depression.
"The financial panic is behind us," said famed investor Warren Buffett, who recently made what he called an "all-in wager" on the U.S. economy by acquiring railroad Burlington Northern Santa Fe.
"The bottom has come in stocks. Don't pass on something that's attractive today."
Sitting facing each other in an auditorium filled with nearly 1,000 cheering people at Columbia University in New York, the CEO of Berkshire Hathaway Inc. and Microsoft founder Bill Gates fielded questions from Columbia Business School students on the recession, investing and what's the next Microsoft.
There were at first reassurances that the U.S. economy had not collapsed since the last time the two sat in front of a student audience, in Nebraska in 2005.
"We proved that we can make mistakes," said Gates.
"But the fundamentals of the system, a marketplace-driven system where we invest in education and a great infrastructure for the long-term, that's continued."
Even in the country's "darkest hour," he said, American businesses were still innovating.
"Last fall was really blindsiding," Buffett said later.
Still, "I did not worry about the overall survival of our economy."
The worst recession since the 1930s may be over, but the recovery isn't expected to be strong enough to stem job losses and get businesses hiring again.
Employers shed a net total of 190,000 jobs in October, a government survey showed Thursday.
It was the 22nd straight month of losses.
And the unemployment rate jumped last month to 10.2 percent, a 26-year high.
Buffett also commended the Bush administration's actions last September, saying "only the government could have saved things" after the collapse of Lehman Brothers triggered a freeze-up in credit markets and panic on Wall Street.
In the future, however, Buffett said "there should be more downside to the head of any institution that has to go to the federal government to be saved for reasons of the greater society. And so far, we have been better at carrots and sticks in rewarding CEOs at the top. But I think some more sticks are called for."
The two endeared themselves to the audience with tips.
Buffett exhorted students to "marry the right person" and said, "The worst investment you can have is cash."
Gates, meanwhile, said he sees big opportunities in environmentally friendly energy and medicine.
"Capitalism is great," he said.
Gates wore a suit and tie, flashing the inner red lining of his jacket as he walked to his chair. Buffett, who earned a master's degree from Columbia in 1951, wore a sweater with the Columbia insignia.
Students in the audience said they were glad the two were so confident about the economy.
"That probably weighs a lot to a lot of people to hear Buffett say we're out of the crisis," said Andrea Basche, an Earth Institute student at Columbia. – AP
http://biz.thestar.com.my/news/story.asp?file=/2009/11/13/business/20091113074426&sec=business
