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As per our previous posts ( How Should Investors trade after the Japanese Disaster? ), we wrote about timber counters, and it's proven the right sector investors should look at. And, below is the performance of those mentioned counters. www.financemalaysia.blogspot.com All of them outperformed KLCI, which recorded -2.20% . Why WTK outperformed its peers? Simple answer is its cheaper share price and better liquidity. In fact, TaAnn and WTK is the main focus because they export 80-90% of their products to Japan. This puts them in the limelight of stocks investors should look at for the moment. Why should you look at Glove sector next? After timber, glove sector should outperformed the generally weak market sentiment. Investors are scared. Those who already bought was stuck-in there. Those who already sold was staying sidelined. And, those who dare to buy now is focusing on timber stocks only - and today glove. Main reasons were: Demand for medical glove is expected to increase sub...

Just before CNY, Latexx surprisingly announcing that the company had accepted a non-binding takeover offer by two private equity funds. However, the deal looks unattractive with limited upside given the offer price of RM3.10 only. For your information, it is only 10.7% above the last trading price of RM2.80 only. About the offer: The offer values Latexx at 8.2x P/E only versus sector's average of 11.7x The takeover offer needs to secure a 75% shareholders' approval as lay out by the new rules With RM3.10 per share, the offer was valued as RM 852.03 million (inclusive of 55.03 million warrants) Would the deal materialize? Finance Malaysia doubt the deal will go through, given the unattractive valuations attached. Please take note that Latexx was one of the largest medical examinations gloves producers globally. By taking over at a mere 8.2x P/E, it would be a very good buy, but not a good sell at all. Another issue which sparks our interest was that the background of the tw...