Dear Investors, Will 2nd Day Glove Be Up?
My answer is yes, if everyone starts buying gloves tomorrow like yesterday.
Why did it go up? You know, there are many articles and comments that goes without saying...
1. Huge amount of profit that glove counters are going to be making this year compared to last year.
2. Topglove is going to be listed in HK soon and why let HK people buy our gloves share at such a cheap price when you know what HK investors WILL DO when they see Topglove being listed on their market.
3. So many banks and insurance agents telling their clients to buy a product bundle that includes "healthcare" and "tech".
4. Gloves QR are coming out and the results is going to be better than expected.
5. Orders are full until end of this year and many were willing to pay for additional 10% ASP to queue up end of this year.
Many foreign glove brokers are desperately trying to find more glove manufacturers to place orders so that they can earn their commission as soon as possible too. They are given a budget. Let me be clear one thing, foreign glove brokers does not only come from US or Europe only. That is right, there are foreign brokers that is coming from the east side as well. Ask around, this is true.
6. Short seliing is also halted until 29th August. Even if share price goes down, they cant earn. If share price goes up and up, they will lose more and more. If share price increased too high, short seller may have to cut loss because the loss will be too big.
7. I hear you say vaccine is here so glove is no longer in demand (your reasoning). Therefore, share price drop? Let me ask you the following:
Who wears the most gloves? Doctor and nurses.
What was the one thing most governments overlook during the pandemic? Lack of gloves.
How many doctor and nurses gave their life away in the line of duty when there was a lack of gloves for them to wear? Too many.
Do you think it will be easier to get more young people to become nurses and doctors after this incident (compared to pre-covid)? Less
Do you think governments around the world want to repeat the same mistake by not having enough gloves in the event of a second pandemic? I think not.
8. Some of you says raw material price goes up so profit less. I heard this fact when ASP was around $80. Two weeks ago, I read that ASP is $100-$140.
So many signs showing that glove will do so so well this year. I understand the sentiment towards glove was weak before yesterday but from the look of it now, the sentiment towards the glove counters is coming back. Just a matter of time, glove counter may boom once again.
LimitUp For those who are scared or don't believe just stay away. For those who wants to cut loss better sell quickly to those who will be making extraordinary profits from gloves this year.
04/03/2021 7:31 AM