Klk have very solid balance sheet their current

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KLK have very solid balance sheet, their current assets is more than enough cover their Total liabilities. Long term demand for palm oil is very supportive of the sector, and that supports the case for recovery in CPO prices. INDUSTRY : SERVICE AND TRADING
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Top glove is the world’s largest rubber glove manufacturer that is listed on the Kuala Lumpur stock exchange. Despite its size, top glove had humble beginnings. Top gloves’ diverse product range fulfill the demand for both the healthcare and non-healthcare segments. Good tailwinds, diverse exposure, good efficiency Global glove demand is set to continue moving in the north, and this industry is set for players who can produce at an output that matches standard, quality, and timing. Of course, established distribution inroads are crucial sense to any business well. Although Malaysia is still top glove major market, comparatively across its peers, top glove’s clientele base is much more diverse. Top glove has mentioned that its aims to increase its presence in the glove market of north America with large nitrile glove sales, while also shared that it is making inroads into China, India, and Russia markets. Strong cash position
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Top glove currently sitting on a hefty cash war chest. As of 1Q16’s balance sheet figures, it currently has some RM865.2 million in cash and short term investment. Top glove’s gearing is also low at 5.8%. Stress testing it with total debt against equity gets a figure of 28.5%, still below the 30% mark. We think that for a company this size its cash chest and healthy gearing levels, it is possible for top glove to actively take on future M&A activities should it choose to, in order for it to grow and expand even after. The sector price earnings ratio (PER) is currently pegged at21 times, while top glove’s PER is at some 23.5 times, just slightly above the sector’s average. Risk and return relationship
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The relationship between risk and return is often represented by a trade-off. In general, the more risk we take on, the greater our possible return. For instance, invest in penny stocks are also very risky and yet seem full of amazing potential. As a beginner in investment activities, we should consider the six steps in investment as a guideline to be a successful investor. In applying the third step, we had identify our type of investment strategy which is conservative. We chose this type of investment strategy because we are consider ourselves as risk-averse investor. Conservative is one that carries the greatest likelihood of preserving the purchasing power of one’s capital with the least amount of risk.
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