Many investors misunderstood the whole issue and started dumping all their glove shares including Comfort and Supermax when they heard about US banning import of gloves from Top Glove. Unfortunately, at the same time at 3.30 pm today Bursa also had a technical hitch to suspend trading which created or escalated more fear.
Investors should read the announcement by Top Glove that its management has taken all the necessary action to comply with the rules set by our Malaysia Ministry of Human Recourse regarding the employment of foreign workers in Malaysia. Previously foreign workers needed to pay agency fees. Now Top Glove no longer collect agency fees. Although all the poor foreign workers wanted to work longer hours and 7 days a week, now Top Glove only allows workers to work not more than 8 hours a day and 6 day a week. Top Glove also no longer retain foreign workers’ pass ports.
If US CBP continues to ban the import of Top Glove’s gloves made in Malaysia, Top Glove can export its gloves made by its factories in China, Thailand etc besides Malaysia. US is not the only buyer of gloves. Moreover, Top Glove can increase its export to so many countries around the world.
In any case, Comfort and Supermax are not concerned with Top Glove’s problem. In fact, Comfort and Supermax can take advantage of the situation to increase their selling price to make more profit.
Currently there are 13,732, 000 Covid 19 cases and 587,728 deaths around the world. These 2 figures are still spiking higher and higher. There are more than 200,000 new cases every day as shown on the chart below.
Currently, there are 3,618,739 Covid 19 cases and 140,185 deaths in US and the number of new cases is still spiking higher and higher as shown on the chart below.
As a result, the demand for gloves will continue to exceed supply and all the glove makers are increasing their selling prices to make more profit which should be reflected on their share prices.
I trust this article can help investors to think logically to make more money. Investors should be able to understand my article to hold on to their shares instead of rushing to dump their holdings. Investor who have buying power should take advantage of the situation to buy more shares. Remember this is a rare opportunity to make more money.