Recently, I often hear people say that investing in stocks is investing in the future.
Therefore, we want to buy growth stocks. As long as it is a growth stock, it doesn't matter how high the PE ratio is. The glove market has been a growth stock for the past 10 years and its price has continued to hit record highs. Until nearly a year or two, too many competitors made the profit margin of gloves down. The price of glove stocks has also started to fall.
COVID-19, which has been buzzing until recently, has bounced back the glove stocks that have already been in a downward trend. Because the demand for gloves will greatly increase.
But today, suddenly the price of many glove company stocks has plummeted. I believe that many investors who buy glove stocks will be locked in unless they are willing to sell at a loss.
I believe everyone has heard of these glove companies, TOPGLOVE, HARTALEGA, KOSSAN and SUPERMAX. These companies have P / E ratios ranging from 20x to nearly 50x. Imagine if you have a company that takes 50 years to pay back, are you willing to invest in such a company?
I personally don't want to, because it is difficult for these companies to grow as fast as before, because their companies are getting bigger and bigger!
If you like glove stocks, I suggest you check out Singapore's RIVERSTONE. P / E is 17 times, and RIVERSTON is one of the leading manufacturers of cleanroom gloves for the HDD and semiconductor industries in the Asian electronics industry. We mainly produce nitrile and natural rubber gloves, which are mainly used in Class 10 and Class 100 clean room environments. We also produce other clean room consumables, including clean room packaging materials and finger covers.
I always believe that buying stocks, whether dividends or growth stocks, cannot be bought when his valuation is too high, otherwise it is likely that your funds will be trapped.
I am going to cook dinner now, bye bye!
BY
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