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 I called uncle again (he has more than 30 years’ experience). We talked about the drop in glove counters yesterday whether it is an opportunity to buy in the market. I call him Sifu or master in English. Some of the things that he told me are as below:

    Sifu told me HARTA bottom is RM15
    Sifu said HARTA can fetch RM19
    Sifu said buy and wait for 3 months. Don’t contra and don’t buy on margin



1. Sifu told me HARTA bottom is RM15

Last Q Harta made RM220m, next quarter should hit RM500m looking at increasing COVID-19 global cases and the result of other gloves company.

So RM500m * 4 = RM2000m per year

No of shares 3427m

One Year EPS = RM0.58

Bottom PE = 25x ...

Historically 33x PE for Hartalega is the normal level that the stock usually trade at. But during extreme crazy situation like now, sometimes you can get Hartalega at 25x PE



So 25 * 0.58 = RM14.50

2. Sifu said HARTA can fetch RM19

Using the usual 33x PE



33 * 0.58 = RM19.1 round to RM19

3. Sifu said buy and wait for 3 months. Don’t contra and don’t buy on margin

Me: How about vaccine? People told me we are going to have it soon!

Sifu: I have answered you previously about vaccine. We have to be humble and don’t simply assume that this vaccine or that vaccine will save us all in a short time. I don’t know about vaccine date but to take care of downside, the RM2000m sustainable earnings already take care that one day Gloves Physical Price (GPP) will decline. But from now until that day, GPP will still go up. So it average each other you see.

https://klse.i3investor.com/blogs/feliciawong/2020-09-03-story-h1513312299-Hartalega_HARTA_How_low_can_it_go.jsp
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