Yes we know right now the heat of the moment is the battle between the Retailers against Institutional Short Sellers on Glove Stocks, especially TOPGLOVE. Looks like the battle is going on great for now and TOPGLOV's test would be to go RM7.50 first.
However, we are not here to talk about TOPGLOV but rather another stock on the GLOVE industry that can give you a very good percentage of gain from this sentiment as well.
We are talking about ESCERAM (0100) - ES CERAMICS TECHNOLOGY BERHAD
First of all, let's get to know about the company.
ESCERAM is a company that produces formers for the glove industry all over Malaysia. It then expanded its range of formers to surgical, household, ballons, industrials and speciality formers.
The focus here is actually the Glove industry (A Hot Industry This Month)!
Let's take a look at how this company has performed over the last quarter.
As we can see from the results above, ESCERAM has improved its revenue and profits for the past 3 quarters and last quarter they hit a RECORD HIGH of both its revenue and net profits!
Why is this so? Lets take a deeper look into their Quarter Report!
As we can see the main cause for the increase of results were the rise in demand for formers coupled with the higher selling price. In our opinion this fantastic performance will continue mainly due to 2 factors
1) The increase in commissioning lines for major glove players to match demand
2) The increase in glove players in Malaysia to tap into the increase global demand for gloves
With these 2 factors in line, we are estimating the Revenue to continue hitting record highs for the upcoming quarter.
We are also looking at an insider move for ESCERAM. This is further strengthening our opinion on the cedibitilty for the increase in share price of this stock
Lets dive into TECHNICAL ANALYSIS for ESCERAM
From the chart above it is evident that there is a strong interest for the stock in terms of its RSI and VOLUME with the best yet to come. The next resistance for this stock is at RM0.72 followed by RM0.80 and eventually RM1. History may repeat again especially with the current bullish sentiment on glove related stocks.
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Disclaimer : All notes expressed here are solely indivdual point of views and we are not responsible for any buy or sell decisions made by others. Kindly use this as a reference reading material to add value to your current research and pleas verify any information stated here with a licensed individual in the capital markets industry before making any decisions.