Being in the market at all times is not the key to profits. Being in the market when there is a clear, unconfused technical signal during a strong market, and the trader's judgment is not swayed by emotion, is a method for trading success. No matter how good the fundamentals and technicals are, stocks will have a high risk of failure during weak markets.
Friday, January 15, 2010
Supermax (7106.KU) at Buy with MYR6.41
Affin Research starts glove maker Supermax (7106.KU) at Buy with MYR6.41 target pegged to CY10 PE of 11X (30% discount to rival Top Glove's target PE of 16X); notes Supermax, despite being world's second largest rubber glove manufacturer after Top Glove, is only trading at 2010 PE of 6.9X vs 14.6X for Top Glove (7113.KU) and 7.4X for Kossan (7153.KU). "Historically, the valuation gap between Top Glove and Supermax has averaged around 4.3X. The current gap is a steep 7.6X, which we believe is unjustifiable in view of Supermax's stronger earnings growth trajectory and more attractive dividend yields," says Affin; projects Supermax earnings to grow at a FY09-11 CAGR of 42%, ahead of Top Glove's 20% and 29% for Kossan. Stock last +1.5% at MYR4.02. 16.12.09. noted.
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