All investors should know that due to Covid 19 pandemic, all the listed company’s businesses with the exception of glove stocks are affected. Usually all institutional investors are holding several stocks in their portfolios and they have to sell most of them to cut loss to buy good growth stocks like glove stocks. That is why the daily traded volume is tens of million shares.
As a result, all glove stocks have shot up a few hundred percent in the last 2 or 3months. As I said before, no stock can continue to go up higher and higher for whatever reasons. After some time, the price must correct. In the last few days, all glove stocks without exception are under correction.
Moreover, many weak-minded investors believe that the glove shares prices cannot go up anymore because China and US will soon find a cure for the coronavirus. It will take another few months to go through the various stages of testing before it is tested by humans. Federal Drug Authority (FDA) will also take some time to approve the use of the vaccine.
Glove stock price will continue to go up higher.
The glove stock price will soon rebound because the number of Covid 19 cases is still increasing in most countries around the world. Many scientists predicted the pandemic will not be under control for at least another 1 years. In fact, WHO just reported 150,000 new Covid 19 cases, the biggest number of Covid 19 cases in a single day. Currently there are 9.412 million cases and 481,000 deaths in the world. The chart below shows that the daily new cases is still increasing.
As shown on the above table, currently US has 2.435 million Covid 19 cases and 124,000 deaths. These 2 figures are still increasing at an alarming rate.
Why the US has 26% of the total number of Covid 19 cases in the world when its population is only about 4% of total number of people in the world?
The only reason is President Trump is like a blind man, groping in the dark. He called the coronavirus Chinese virus and Kungflu. He does not follow his advisers. He thinks he knows everything.
What you should do?
Unfortunately, there are some weak holders without foresight are also selling. Those smarter investors who sold at higher prices are taking advantage of this good buying opportunity to make more money.
Those who did not sell at higher prices should not worry because due to Covid 19 pandemic the demand for gloves far exceeds supply. As a result, glove price continues to go up higher and higher. As you can see all glove makers have reported increased profit in the last quarter.
I am very sure all the glove makers will report increased profit in the next quarter. All investors should wait about 2.5 months to see the result.
You must remember, the increased sale price is pure profit because all the glove makers do not need production cost to be able to increase the selling price.
As I said, the number of Covid 19 cases is still increasing and the demand for gloves will continue to exceed supply. The game is not over yet.
You should not sell your holdings now. You can make more money if you wait. Patience is the key to successful investment.
In fact, it is still not too late to buy more glove stocks. After I saw the number of Covid 19 cases is still rising, I believe my target prices for Comfort and Supermax are achievable.
https://klse.i3investor.com/blogs/koonyewyinblog/2020-06-25-story-h1509591455-Glove_stocks_are_dropping_what_you_should_do_Koon_Yew_Yin.jsp
