Koon Yew Yin 25 Aug 2020
As I am writing this article, the prices of all glove stocks without exception are dropping. This can only be many short-sighted investors who are frightened by the vaccine news rushing to sell their holdings. They think that the vaccine will reduce the demand for medical gloves. As a result, glove price will soon drop and all the glove makers will not make increasing profit in future.
Currently there are 3 vaccines from China and 3 vaccines from other countries under phase 3 testing which will take at least 6 months to secure FDA approval. When the vaccines are finally approved, it will take a long time to produce enough to vaccinate all the people in the whole world. Unless all the people are vaccinated, those who are not vaccinated can continue to spread the virus. Moreover, to vaccinate so many people, a lot more clinics and medical workers will be required and more medical gloves will be required.
In fact, when vaccines are made available, more medical gloves will be required.
Many scientists predicted the pandemic will not be under control for 1 or more years.
Supermax just reported the biggest quarterly profit in the history of the company. They should not be frightened by the vaccine news. They should wait patiently for about 1 months to get the bonus shares and wait about 2 months to see Top Glove’s 4th quarter historical biggest profit.
Smart investors should not follow like sheep to rush to sell their holdings. They should wait patiently for another few months to make more profit.