My Personal view on RSS (Regulated Short Selling started on 4 Jan 2021)
1. Shorties short Top 4 glove on 4 Jan 2021 heavily or sell at low price region, downside limited. If they short in Oct 2020 where many short term players on glove then I would say a very good move.
2. Those want to sell glove already sold. Those holding gloves mostly mid to long term investors I believe.
3. Shorties need to pay interest for borrowing shares to perform short selling (RSS). At the same time, they also need to cover up the dividend paid by Top 4 gloves (to the borrowers) over the time if they short for long term which most of them will pay high dividend during super high earning period in 2021.
4. Buyers of glove can expect higher dividend yield other than capital appreciation over mid term in 2021 (topglove for example maybe one of the highest div yield in Bursa)
5. Most of the bad news about glove likely surface out. Upcoming will be good result, higher dividend, share buy back (like Kossan, ruberrex etc last 3-4 days), bosses also buying using their own pocket money like Tan Sri LWC.
6. Tan Sri Lim Wee Chai going to receive more than 450mil cash dividend on 11 Jan 2021 (he own 2.788 Billion shares direct n indirect, X 16.5c per share). Even before he receives this dividend, he already bought quite a lot of Topglove share from market. He is expected to receive more cash dividend in 2nd, 3rd and 4th qtr of FY2021.
1. Shorties short Top 4 glove on 4 Jan 2021 heavily or sell at low price region, downside limited. If they short in Oct 2020 where many short term players on glove then I would say a very good move.
2. Those want to sell glove already sold. Those holding gloves mostly mid to long term investors I believe.
3. Shorties need to pay interest for borrowing shares to perform short selling (RSS). At the same time, they also need to cover up the dividend paid by Top 4 gloves (to the borrowers) over the time if they short for long term which most of them will pay high dividend during super high earning period in 2021.
4. Buyers of glove can expect higher dividend yield other than capital appreciation over mid term in 2021 (topglove for example maybe one of the highest div yield in Bursa)
5. Most of the bad news about glove likely surface out. Upcoming will be good result, higher dividend, share buy back (like Kossan, ruberrex etc last 3-4 days), bosses also buying using their own pocket money like Tan Sri LWC.
6. Tan Sri Lim Wee Chai going to receive more than 450mil cash dividend on 11 Jan 2021 (he own 2.788 Billion shares direct n indirect, X 16.5c per share). Even before he receives this dividend, he already bought quite a lot of Topglove share from market. He is expected to receive more cash dividend in 2nd, 3rd and 4th qtr of FY2021.
The above message is just my personal view or analysis on RSS, NOT a buy or sell call on any glove counters.
If I m right, mean EPF is long term to hold these shares. With SBL they can earn extra interest by lending share to others who wish to short. Later shortie hv to buy back shares to return Topglove shares to EPF.
Epf has at one time holding up to 5.6%, close to 459m shares. They should be long term and lend 40m shares to shorties to earn extra interest of SBL (hence ceased to be substantial shareholder ) they still hold 350m shares to earn dividend. Net net EPF didnot sell the 40m shares as shorties later hv to return the shares (buy back from market). They should signed an agreement to borrow the shares from EPF for a certain period of time.
Shorties still not cover back their short position by buying back (up to 11 Jan data).