Glove stock make a come back on yesterday

Yesterday, glove stocks saw a slight improvement, and it kept that momentum through to Tuesday. 4 major and 3 smaller glove stocks, with Top Glove leading the charge, seem to be continuing to launch an offensive.

Top Glove (TOPGLOVE) stocks saw improvement of 58 sens, up to RM16.28
Supermax (SUPERMX) went up by 43 sens to RM8.15
Hartalega (HARTA) was up 50 sens to RM13.00
Kossan Rubber (KOSSAN) were also up by 28 sens at RM8.50
Rubberex (RUBEREX) rose 23 cents to RM3.21
Comfort Gloves (COMFORT) rose 16 cents to RM3.27
Careplus (CAREPLS) rose 4 cents to RM1.50

Glove stocks rose for two consecutive days, proving that the price adjustment that began on the 19th of June was just a technical adjustment, and the market’s outlook for glove stocks remains unchanged. Yesterday, the company reported quarterly results, net profits had nearly quadrupled year-on-year, and gave the glove stocks a confidence
The Central Bank of Malaysia yesterday raised the margin value of the glove-shares (MARGIN) compared to the attitude of reducing the margin value of the glove-shares just a month ago, which caused large amounts of retail investors to rush into the market today.
It found that analysts at major stock markets were still bullish on their outlook for glove stocks, with Top Glove and Supermax were still the “preferred stocks” amongst the glove stocks. Billionaire investor Koon Yew Yin remains bullish on glove stocks, and he believes Supermax will be the best-performing glove stocks.
Koon Yew Yin pointed out that the Supermax has their own distribution centre in the United States and many other countries, which allows them to quickly increase the price of gloves, which could lead to the new price doubling. As a result, expect Supermax earnings to improve for the next quarter, which would be adequate in pushing up share prices.
Koon Yew Yin suggest that small investors should sell their stocks they have on hand that are not performing well, to attack glove stocks. Koon Yew Yin may controversial, but his views are sometimes worth referring to, whether or not his views on glove stocks are right or wrong, investors should still assess his words. He insists that the global demand for gloves will remain high, which is the advantage of the glove stocks.
Whether we’ve seen the best of Top Glove, and Supermax becomes the next star of the show, the investing public should base their decisions off their own conditions and opinions. The highest target price for Top Glove’s share is RM25.00, Koon Yew Yin estimates that the target price of Supermax would easily exceed RM10.00.
Will glove stocks continue moving towards the target within the next few days? It seems highly dependent on whether the market’s sentiment towards glove stocks changes.

Leave a Reply

Your email address will not be published. Required fields are marked *