Fair Value: RM4.52
Recommendation: SELL/HOLD
The next quarterly report will be out some time this month. There is a possibility that the result will be less encouraging like Topglove. As the US government continue to print money, the US dollar will continue to be weakened, and this will hurt the earnings of rubber glove companies.
There is a possibility that the market price of Supermax will continue to drop. Or it might not. So the best strategy is to sell half and hold half. :-P If the market price continue to drop, you would have some extra cash to buy at a lower price. If the market price goes up instead, you would have the other half to ride the uptrend and use the other half in cash for other stocks when the boat of opportunity arrives.
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