Koon Yew Yin 28 Aug 2020
Covid 19 pandemic is affecting everybody and all listed companies except medical gloves stocks and medical products to prevent the virus. The demand for medical glove far exceeds supply. All glove makers can easily increase their selling prices to take advantage of the big demand to make more profit which is being reflected on the share prices.
As shown on the charts, Supermax has shot up from Rm 1.80 to close at Rm 22.14 in the last few months, an increase of 12.3 times; while Comfort has shot up from 80 sen to close at Rm 4.31, an increase of 5.4 times.
As shown on the chart below Comfort was selling at Rm 6.76 on 3rd Aug and closed today at Rm 4.31, a drop of Rm 2.45 in less than 3 weeks. During the same period, all the other glove stocks have gone up.
Smart investors should be able to see that this is so ridiculous. It is a good buying opportunity to make money. I sold Comfort earlier to buy Supermax and today I sold Supermax because it has shot up more than 12 times already to buy Comfort. I sold every 1 Supermax I can buy 6 Comfort.
As I said many a time before, no stock can drop continuously for whatever reason. After sometime it must change its trend. The best time to buy is at its pivoting point.
Comfort will report its 2rd quarter result ending July before end of September. Like all glove stocks, the result should be very good.
My intention for writing this piece is to help readers to make more money. Remember whether you buy or not does not make any difference to the share price because the daily volume traded is tens of million shares.