This year has been very excellent for GLOVE BULL RUN just like the OGSE BULL RUN of last year.
And since Glove Stocks already run up by 100% to 400% in some cases from its lows I have gradually shifted my attention to Glove & Face Mask Stocks like Adventa & Mtag.
Now my latest discovery is Prolexus as it goes into the manufature of ProXmask
But now as we dig deeper we found to our surprise!
Tan Teng Boo of ICapital Biz has bought 1.592 MILLIONS PROLEXUS Shares only in Year 2019 & EMERGED AS TOP 21 HOLDER OF PROLEXUS!!
Ha! He bought them when there was No Covid 19! So he must have accumulated These Shares On Its Own Merit
That sets me thinking deeper
Why Oh Why?
What Dis Tan Teng Boo See in PROLEXUS.
Is Prolexus another Padini? We know TTB bought Padini years back when prices were dirt cheap. Padini was only 65 sen on May 2008. So will Prolexus now be another Padini?
Let's take a look at Prolexus
1) Its last quarter is profitable if you take away loss from currency conversion
Please refer to last Qtr result
Profit for the period...............Rm 699,000
Foreign currency translation differences for foreign operations (Rm1,199,000)
Total comprehensive (loss)/income for the period (Rm500,000)
So if we take out the losses from currency translation difference Prolexus actually registered a profit
2) PROLEXUS GOT GOOD MARGIN OF SAFETY
Price only 63.5 sen with NAV of Rm1.31 Prolexus is selling at a Huge Discount of 52% or less than half its Asset Value
A check with Properties owned by Prolexus showed it owned many Industrial Factories which are resilient from recession
3) Its Borrowings are Long Term backed by Assets while It has Rm70 Millions in CASH
Very good cash flow as Prolexus debt is long term for buying Factories. Now got three plus points
i) Govt has told banks to freeze loan payments.So Prolexus need not pay bank loan for next 6 moths
ii) Employees are given Govt subsidies in MCO lock-down
iii) Best news! Bank Negara cut interest rate from 2.5% to 2%. Substantial savings for Prolexus
4) Prolexus has Excellent Leadership in ProActive Management
So while Prolexus debt is on hold Its CASH HOARD has been ProActively deployed to Make ProXmask!
Already so successful now they are stepping up with an improved version
In a time of Crisis by Covid 19 they seized the opportunity presented to make High Value FaceXmask
The Speed of Management & Its Foresight is commendable
5)THIS IS A HIGH VALUE ADD COMPANY
Unlike Padini which sell to the masses Prolexus manufactures for High Branded Companies like NIKE, DISNEY, UNDER ARMOUR, CONVERSE, GAP & OTHERS
While Padini has a Malaysian based domestic market Prolexus thru its Exposure in World Class Brands have a Very Huge Market in China & USA (Gap is reopening 800 Stores & selling on-line)
Even with Covid 19 lock-down in China NIKE Has Gone To ECommerce by Selling On-line. And Sales have increased by 30%
6) SO IS THAT WHY TTB OF ICAPBIZ DISCOVERED? NO PROBLEM. PROLEXUS' OWN BOSSES KNOW TOO WELL ITS GOOD PROSPECT
SEE AGAIN HOW THEY BOUGHT AND BOUGHT
|MR LAU MONG YING||29-Apr-2020||Acquired||80,000||0.499|
|MR LAU MONG YING||28-Apr-2020||Acquired||73,100||0.485|
|MR LAU MONG YING||27-Apr-2020||Acquired||16,400||0.475|
|MR LAU MONG YING||24-Apr-2020||Acquired||140,000||0.479|
|ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI||16-Mar-2020||Acquired||20,000||0.435|
|ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI||04-Feb-2020||Transferred||34,100||-|
|ENCIK TAUFIQ AHMAD @ AHMAD MUSTAPHA BIN GHAZALI||14-Jan-2020||Acquired||5,000||0.740|
|MR LAU MONG YING||14-Jan-2020||Acquired||20,000||0.755|
|MR LAU MONG YING||13-Jan-2020||Acquired||50,000||0.756|
|MR LAU MONG YING||10-Jan-2020||Acquired||30,000||0.762|
|MR LAU MONG FAH||03-Jan-2020||Acquired||15,000||0.810|
|MR LAU MONG YING||03-Jan-2020||Acquired||80,000||0.811|
|MR LAU MONG YING||02-Jan-2020||Acquired||10,000||0.820|
|MR LAU MONG YING||31-Dec-2019||Acquired||30,000||0.822|
|MR LAU MONG YING||19-Dec-2019||Acquired||30,000||0.825|
|MR LAU MONG YING||18-Dec-2019||Acquired||10,000||0.810|
|MR LAU MONG YING||17-Dec-2019||Acquired||50,000||0.802|
|MR LAU MONG YING||13-Dec-2019||Acquired||100,000||0.874|
7) ONE MORE VERY TOP TOP SECRET
My Johor Sifu was among the very first to take up IcapBiz Ipo share at par value of Rm1.00
After more than 10 years IcapBiz shares have gone up from Rm1.00 to the high over over Rm2.50 or up more than 150% at its peak
That means that ICapBiz gave him a yield of over 10% yearly
But my Johor sifu was totally dissatisfied as he could have done much better than Tan Teng Boo (TTB)
He voiced his unhappiness by calling out TAN TENG BOOOOO!!!
You see, my Johor Sifu is an avid student of Great Champion Sifu Dr Neoh Soon Kean of Dynaquest. He easily make more than 15% to 25% on his own
But one day while having coffee with my Johor Sifu he told me the secret
He would read every Annual Report of ICapBiz to see what TTB buys
No wonder now I know
He once gave me a Tip on Petronas Dagangang at Rm4.50. It went up more than 500% to over Rm20.00
He also bought P.I.E, INTEGRAX & TONGHHER - all Secret Tips from ICapBiz Annual Reports
He told me altough he did not benefit much from investing in ICapBiz directly (I told him to give up IcapBiz but he some how refused) he made a killing buying into P.I.E with his pesonal investment
He made Rm1.5 Millions from P.I.E and others
Of course TTB took high salary of Millions in IcapBiz & drives a ferari car. But for P.I.E he need not pay a sen to TTB
That was his consolation being locked up in IcapBiz for a decade
Now is my Johor Sifu also buying Prolexus?
For that I need to call him
Prolexus price now 63.5 sen
Calvin has a target price for Prolexus at Rm1.00 or just a modest 57% upside
Hopefully after Glove Bull the Face Mask Bull will follow. The Sale of ProXmask will propel Prolexus price up
Calvin Tan Research
Please buy or sell after doing your own due diligence. In doubt please consult your Remisier or Fund Manager