Anzo Holdings Bhd Is One Hot Stock - And Everyone's Buying

Anzo Holdings Bhd Is One Hot Stock - And Everyone's Buying | Anzo Holdings Bhd has become a hot stock, and may be a hot pick this week with the share expected to hit limit-up this week on news that it may announce a new substantial shareholder soon. There is a high chance the stock may surge 30 sen or more than 130%. Since Anzo's last traded price was 18 sen, to hit limit-up means it has the potential to hit 48 sen.

Fact About Limit Up 

Limit up is the maximum amount by which the price of a futures contract may advance in one trading day. When the price hits the threshold, either the limit up price is expanded, or trading for the day is stopped, depending on what type of contract is trading (Ref: Investopedia). The stock exchange operator implemented a validity-of-order throughout the day via “Day Order” effective April 18, 2011 and a single trading limit of 30% for shares above RM1 and 30 sen for units below RM1.

  

Many are speculating that Anzo will rise this week to a new high. 

Investors are advised that their investment decisions should be made based on an assessment of the fundamentals of the company. Based on Anzo's track records, its strong fundamentals and by the emergence of a cash-rich shareholder from China or Hong Kong who has been buying shares in bulk in Anzo in the past few weeks, that investment decision will be decided within seconds. 

Last Friday, Anzo's stock closed at 18 sen after moving up to 20.5, with 308 million shares traded and marked as one of the most active stocks last week (as it has been consistently stayed as one of the active stocks for the past several weeks). That alone is a steady indicator for a good buy-in for the stocks. 

Anzo's Achievements (the most recent ones)

Here are some of the recent achievements of Anzo Holdings Berhad.

1. Anzo recently secured a RM1.3 billion contract to supply copper scrap to a steel-making group in South Korea effective from July 1 via CSTME Resources Sdn Bhd.
2. Last week Anzo announced that it has acquired a factory manufacturing medical and/or nitrile gloves in Manjung, Perak for RM55 million.
3. Anzo bought the assets of Wintrade World Sdn Bhd including land and factory that has the capacity to produce up to 1.2 billion pieces of medical and nitrile gloves a year.

Personally, I would say the latest achievement (Wintrade World Sdn Bhd land & factory) is the best move that Anzo has made. With the current rising global demand of disposable gloves, the company surely marked its entry in the right businesses. According to the rubber glove manufacturers association (MARGMA), the world consumption of the personal protective equipment is estimated to jump more than 11% to 330 billion pieces this year, two thirds of which are likely to be supplied by Malaysia.

As it seems that plant in Manjung has ample land for expansion (over 10 acres), the top glovemakers in Malaysia, Top Glove, Kossan and Hartaleg included will join the bandwagon if it ramps up production at the Manjung plant. The current capacity allows the plant to produce up to 1.2 billion pieces of rubber gloves/nitrile gloves per annum, worth about RM400 million, through 9 production lines running at full capacity.

If Anzo increases the production lines to 12 or 15 lines, there is high possibility that the revenue might double.

As for the company's copper business with the South Korean group, Anzo has started supplying the copper effective July 1. By July 3, Anzo could have supplied 500 tonnes to 700 tonnes of copper to South Korea via CSTME, worth nearly RM15 million. 

As I've mentioned in my previous post, the future is certainly bright for Anzo. And that is one good news for the investors and shareholders, the current ones and I believe more are coming. 

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