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Investment in stocks in the PPE/ glove business
19 Sep 2021 (599 views)  

Dear Mr. Tan,

I invested in some PPE/Gloves stocks which were doing very well last year but I didn't sell them.

This year they all stumbled to their lowest level because of the introduction of vaccines.
Although it is paper loss but I felt disheartened.

Should I continue to hold or cut my losses? 

TKL reply

The list of stocks are shown in the table below. 

Here is a brief summary.

1. The first two stocks have a market cap of more than $1 billion. They are relatively large companies. The third has a modest market cap of $300 million. The last two are small, with a market cap less than $100 million.

2. The first three stocks have a PE ratio of less than 4 times. They are grossly undervalued. 

3. The first three stocks have a dividend yield of 21.7%, 7.4% and 14.8%. They are very attractive.

4. The stocks have a drop of between 45% to 74% of its highest prices during the past year.

5.  Except for CFM, the other stocks have a low debt to equity ratio of less than 20%.

If I were holding these stocks, I would keep the first three stocks as they have a low PE ratio, a high dividend yield and a low debt ratio. They are also large companies. 

Even if the stocks were to perform poorly in the current year, they are already seriously undervalued, so they can be kept for the recovery.

I do not like CFM (#4) because if is not paying any dividend and has a high debt. I do not like Oxypay (#5) because it is not profitable. Both are small companies.

This is just a cursory observation. The investor should study the prospects for these companies more closely before taking a decision.

Note - I am giving a personal view. I am not giving any investment advice to buy or sell any stock at the current price. 

Tan Kin Lian

 


Investment in stocks in the PPE/ glove business
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Dear Mr. Tan,

I invested in some PPE/Gloves stocks which were doing very well last year but I didn't sell them.

This year they all stumbled to their lowest level because of the introduction of vaccines.
Although it is paper loss but I felt disheartened.

Should I continue to hold or cut my losses? 

TKL reply

The list of stocks are shown in the table below. 

Here is a brief summary.

1. The first two stocks have a market cap of more than $1 billion. They are relatively large companies. The third has a modest market cap of $300 million. The last two are small, with a market cap less than $100 million.

2. The first three stocks have a PE ratio of less than 4 times. They are grossly undervalued. 

3. The first three stocks have a dividend yield of 21.7%, 7.4% and 14.8%. They are very attractive.

4. The stocks have a drop of between 45% to 74% of its highest prices during the past year.

5.  Except for CFM, the other stocks have a low debt to equity ratio of less than 20%.

If I were holding these stocks, I would keep the first three stocks as they have a low PE ratio, a high dividend yield and a low debt ratio. They are also large companies. 

Even if the stocks were to perform poorly in the current year, they are already seriously undervalued, so they can be kept for the recovery.

I do not like CFM (#4) because if is not paying any dividend and has a high debt. I do not like Oxypay (#5) because it is not profitable. Both are small companies.

This is just a cursory observation. The investor should study the prospects for these companies more closely before taking a decision.

Note - I am giving a personal view. I am not giving any investment advice to buy or sell any stock at the current price. 

Tan Kin Lian