Koon Yew Yin 28 July 2020
Top Glove price chart shows that it has gone up only about 4 times in the last few months. During the same period Supermax price chart shows that it has gone up 8 times and Comfort has gone up about 5 times.
This does not make any business sense. Top Glove being the biggest glove manufacturer in the world should be easier and faster to demand higher selling price for its products. Investors must realise that any additional selling price is pure profit because it does not involve production cost.
Unfortunately, less informed investors dare not buy Top Glove because it is selling above Rm 25 and they prefer to buy cheaper priced glove stocks namely, Comfort and Supermax.
Top Glove being the biggest glove maker in the world can easily take advantage of this captive market situation.
Only smart investors and well-informed Investment Bankers would buy Top Glove because they know Top Glove will soon announce unprecedented profit in the Glove Industry history.
The 2 charts below are showing the number of Covid 19 cases and deaths in the world and in the US. Unfortunately, these figures are still spiking up. Due to Covid 19 pandemic the demand for medical gloves far exceeds supply. As a result, all Glove Makers can easily increase their selling prices to make more and more profit. Top Glove being the biggest glove maker in the world can easily take advantage of this captive market situation.
Currently there are 16.643 million Covid 19 cases and 656,495 deaths in the world. There are 4.37 million Covid 19 cases and 150,000 deaths in US. Unfortunately, all these figures are still spiking up.