Adventa has been the only one glove stocks which has not really moved. Adventa has a total of three business segments and which are related yet instinct. The main core competence of Adventa would be still dealing with its medical glove manufacturing.
Although Adventa is one of the smallest market capital glove counter in KLCI, it has differentiated itself well in the niche medical glove manufacturing sector. Medical glove sector would be treated as defensive industry as its demand is still there no matter how bad the economy is. People still need to pay for seeking doctors, medical checkups, operations, amongst other.
Medical and examination gloves business would be well sustainable as compared with those other industry glove. Industry gloves would be used until it is worn out. Yet, medical gloves are very demanding as it will be replaced once it has been used for hygiene purposes. And in this market segment, Adventa is the potential future leader as it commits to become top of the world medical glove manufacturer in years time. It has been investing heavy research and development cost to keep Adventa growth on pace.
Adventa profit has been declining for a year. All these are well thanks to appreciation of RM and rise of latex price. It does impact all glove counter and manufacters using USD as export currency. This bull of RM mainly is due to the transfer of USD to asean market after USD reach its peak at 3.8 for MYR. Definitely they would be able to buy cheaper property and investment in asean with their strong USD. Until half of 2011, the USD seems meet it bottom and make a rebound till now ranging between 3.1 to 3.2 to MYR. Besides, thanks for the decline in latex price too, it has made all glove counters made a bull run in end of September.
Damn! i cut at lowest point for SUPERMAX at 2.3 after my thorough analysis. Without much experience dealing with such a fluctuate market, I get worried about the EUROPE PIIGS crisis and sell off during the last sideway trading of SUPERMAX. Furthermore, it announces a 1 for 1 bonus issue. Obviously, if i am still holding with strong mind, I dont think i will need to sell off SUPERMAX for the rest of my life.
Thus, after analysing, Adventa is the one which share price has not been rised much among glove counter. Will it possible it is now the big player collecting thier holding with letting the low volume of share price falling? Just stay tune!