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Review of Top Glove (BVA.SI)
20 Jan 2023 (369 views)  

1. I own 150,000 shares of Top Glove (BVA.SI) at a cost of $0.603. The current price is $0.275 giving me a loss of 54% or S$49,000. 

2. Prior to the covid pandemic, the stock price was around $0.60. It jumped to $2.75 in September 2020, due to high demand for their gloves and high profit margin. 


3. Due to lower demand and increased supply, the profit had declined sharply. The company reported losses for the latest two quarters. The stock price had dropped to $0.275, which is less than half of the price before the pandemic. 

The company now reports a loss (i.e. PE ratio is negative) and stop paying a dividend.

4. The analysts are pessimistic on this stock, as they expect the oversupply to persist over the next two years. 

5. I will hold on to my stock and wait for its recovery. Here are my reasons:

a. Top Glove is the largest manufacturer of hospital gloves.
b. There will be continuing demand for their product, as the covid pandemic is still around and the gloves are also required for other hospital treatments.
c. They have factories in China, which can produce their products at low cost.
d. I expect some manufacturers to reduce their production to meet the lower demand. This will bring up the prices and profit margin and allow the industry to return to profits. 

Note - this is a personal view. It is not investment advice.

Tan Kin Lian

Review of Top Glove (BVA.SI)
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1. I own 150,000 shares of Top Glove (BVA.SI) at a cost of $0.603. The current price is $0.275 giving me a loss of 54% or S$49,000. 

2. Prior to the covid pandemic, the stock price was around $0.60. It jumped to $2.75 in September 2020, due to high demand for their gloves and high profit margin. 


3. Due to lower demand and increased supply, the profit had declined sharply. The company reported losses for the latest two quarters. The stock price had dropped to $0.275, which is less than half of the price before the pandemic. 

The company now reports a loss (i.e. PE ratio is negative) and stop paying a dividend.

4. The analysts are pessimistic on this stock, as they expect the oversupply to persist over the next two years. 

5. I will hold on to my stock and wait for its recovery. Here are my reasons:

a. Top Glove is the largest manufacturer of hospital gloves.
b. There will be continuing demand for their product, as the covid pandemic is still around and the gloves are also required for other hospital treatments.
c. They have factories in China, which can produce their products at low cost.
d. I expect some manufacturers to reduce their production to meet the lower demand. This will bring up the prices and profit margin and allow the industry to return to profits. 

Note - this is a personal view. It is not investment advice.

Tan Kin Lian