Koon Yew Yin 20 May 2020
As I said before, no share can continue to go up or down for whatever reason. After sometime it will change its trend. As you can see the price moves up and down quite frequently. It has been dropping in the last couple of days and suddenly it is rebounding sharply this morning. Based on this fact, you should have bought in the last couple of days with margin finance so that you can sell all those which you have bought using margin finance today to make money. If you did that, you will have buying power to buy back at cheaper prices sooner or later.
Nevertheless, you must remember that due to Covid 19 the demand for gloves exceeds supply. As a result, glove price will continue to go up higher and higher and all glove makers are making increasingly more profit.
Comfort has the best profit growth prospect and its financial year ends in January.
Comfort produces 5.4 billion gloves annually. Comfort has added 6 production lines since February to its original 49 lines. The increased production is timely to take advantage of the higher glove prices. Comfort has the best profit growth prospect which is the most powerful catalyst to push share price higher. Currently at 12.30 pm Comfort has gone up 30 sen per share to close at Rm 2.35.
Although I suggested how short term investors can make some money, you must remember long term serious investors can make more money. Last night Mr Ooi Teik Bee sent out his weekly recommendation with a target price is Rm 5.56