Ruberex & IRCB rose steadily over the past few days. The steady buying has turned into a mad rush today. Ruberex gained 27 sen or 16% to close at RM2.00 while IRCB jumped 23 sen or 42% to close at RM0.77. Both stocks are listed within the top ten gainers for today. Within that list, one can also find other rubber gloves makers, such as Adventa, Supermx & Latexx. To find 5 rubber gloves makers in the top ten gainers for today says a lot about the euphoria in this sector. While many may dream of higher prices ahead for these companies, I would however advise caution. The contrarian in me thinks that this may be a good time to take some profit.
Chart 1: Ruberex's weekly chart as at August 10, 2009_4.45pm (Source: Quickchart)
Chart 2: IRCB's weekly chart as at August 10, 2009_4.45pm (Source: Quickchart)
7 comments:
How u think about Latexx and Kossan after you have discussed the Supermx
What do you think about Latexx and Kossan ?
Hi Cheer,
The resistance for the stocks are:
- Latexx (RM2.30-2.50),
- Kossan (RM4.40-50 & RM4.75-80),
- Ruberex (RM2.00-2.10) &
- IRCB (RM0.68, RM0.75 & RM0.80).
I heard from a medical rep that there is new drug(tamiflu's generic)will be officially annouced@17/8/09 and available@ market @ 28/8/09. This new drug called omiflu & is manufactured by Duopharma which is under CCMDBIO.
Can u comment about CCMDBIO? TQ!
Hi Pharmacyproduct2U,
Tamiflu is the trade name for an anti-viral drug called Oseltamivir. The patent for this drug belongs to Roche. Roche has granted permission to Vietnam to produce a generic version of this drug. It has also signed a sub-license agreement to produce the drug in Shanghai. An Indian company, Cipla won the case to produce a generic version of Tamiflu, called Antiflu in Dec 2008. A Thai generic oseltamivir was produced in February 2006 and was available to the public in July 2006. Based on the above, it is possible that what you've said could be true. See the link below.
The problem is estimating the sale of this product. Besides an initial order of 1-2% of the population size by the government, future order will depend on how bad the pandemic will become. One cannot discount the possibility that the whole thing may just die down after a few months. Thereafter, the sale may be quite minimal. In addition, the profit margin may not be high.
Technically, CCMDBIO (closed at RM2.40 yesterday) is an unexciting & thinly traded stock, caught in a range between RM1.85 & RM2.85 for the past 5 years.
In term of valuation, it is fairly priced at trailing PE of 12 times (based on FY2008 EPS of 20 sen) and a Price-to-Book is about 2.6 times.
Based on the above, I would give this tip a miss. While it may fly sharply higher if the pandemic worsened (which I hope it will not) but I would rated it a very speculative BUY.
http://en.wikipedia.org/wiki/Oseltamivir#Pandemic_fears
TQ Mr Alex! Here is the latest news of CCMDBIO
http://www.nst.com.my/Current_News/NST/articles/8antt/Article/index_html
Hi Pharmacyproduct2U,
Thanks for the info. BTW, I've learned from a friend that the generic version of tamiflu being produced by CCMDBIO is probably true.
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