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 Speaking of vaccine, there are suddenly a lot of loss making companies such as SOLUTION, KANGER, MSCM, HWG and so forth that are involved in it. WOW! Is this really the rise of this companies, or purely to goreng and run?

 

I believe investors are smart enough to answer this question. Below is an extract taken from the Internet.

 

"Enter the vaccine distribution play, something a lot of companies are trying to lay their hands on, judging by the number of companies jumping on the bandwagon claiming to be potential distributors.

It may make sense at the onset being a Covid-19 play, but the difference between manufacturing gloves and diversifying into one of the supply chains of the highly regulated pharmaceutical industry is world’s apart.

As easy as transporting and distributing may sound, moving vaccines around or even bottling it is no job for any Tom, Dick and Harry.

Unable to draw a fair line between objectivity and the fear of missing out on windfall profits like what the rubber glove makers made, companies that were practically unheard of, including those who do not have a nice financial track record are rushing into the scene.

Over the past weeks, the company announcements page was filled with filings of agreement signings for exclusive rights to do vaccine distribution, new subsidiaries being set up, change of names of subsidiaries to include the word “bio” or “biotech”, joint ventures with newly-formed companies for the purposes of vaccine-related businesses, among others.

An expert in the pharmaceutical industry tells StarBizWeek that the vaccine business is not as straightforward as pushing out rubber gloves or personal protective equipment (PPE).An approval will need to be obtained from the National Pharmaceutical Regulatory Agency (NRPA) which would take quite some time but this will of course, be fast tracked due to the urgency to curb the pandemic."

 

So.. Basically this article is saying not "ah mao, ah kao" can get involved in the vaccine game so easy. However, as investors, we must be creative and think outside the box when we talk about investment. So we know that distribution is easy to enter and highly competitive. But manufacturing glass vials or bottles for vaccine? That is a more advanced sector to venture into.

 

Ok. So which company in Malaysia manufacture glass bottles? Close to none, or either they manufacture glass bottles that are not pharmaceutical related, so I'm not going to mentioned their names. But this company who supply the raw material of glass - which is sand is going to benefit wildly from this event!

 

So previously, AGESON BERHAD (7145) had won a RM 27.5 Billion worth of contract to export sand to overseas. But then, some sceptical investors say that they couldn't execute it due to limitations of licensing? OKAY THEN, let's ignore the fact that AGES actually gets into the JV with MBI KEDAH.

 

Let's talk about actual number games. The company had recently won another contract to supply silica sand to TECHPACK Korea, one of the largest glass bottle manufacturing company in Korea. So, with that in mind, the existing USD 79.5 Million worth of contract is just the beginning of the ultra high growth prospects of AGES.

 

And this company is trading at P/E ratio of 50? 60? NO! AGES is currently trading below 5 times of P/E, what the f?

 

Anyway, if you saw this article, I urge you to make some studies about this counter, this is a super duper undervalued counter!

 https://klse.i3investor.com/blogs/kyyinvestment/2020-09-26-story-h1514326308-THIS_COMPANY_MAY_WIN_BIG_IN_PHARMACEUTICAL_DEMAND_HIKE.jsp

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