QUOTE(ComingBackSoon @ Aug 17 2020, 06:51 PM)
Nice... I am done buying at RM20++. Need to conserve $$ to buy into other opportunities when they arise. My strategy next is to either:
1) Reload at RM16-18 range, if it falls to this level
2) Sell half at RM35, and the remaining half at RM40.
If it doesn't reach any of the above level, I am just gonna hold them like how I HODL my btc. 10 years later maybe another pandemic, can ride the wave like how those who hold at RM5 since before pandemic ride the current wave
Any vaccine news, windfall tax news or any other shit news come out, I will say DR;NS. DIN'T READ; NEVER SELLING.
Global top manufacturer, no need to worry it will go Holland 1.
While I am strong believer of the short term growth of glove sector, I am a bit reserved on the long term growth.
China two biggest listed gloves company are pushing hard to venture into nitrile gloves production. Their expansion plan over the next 5 years are ambitious and if you combined with the current ASEAN Big-Five, the industry capacity YoY increase might (I say might because it’s my long term projection, and when you start projecting long term, it’s easier to have more variances if you miscalculate a small tiny part) outperform the glove demand YoY increase.
2nd reason is currently those companies relies heavily on the Taiwan and South Korea company supply on nitrile latex. I don’t know whether have anyone of you done any homework on the material cost. Recently the supply is very tight and material cost will definitely increase soon (although I think it’s negligible compare to the ASP increase). The expansion of China company will make the material supply even more tight and when material demand > supply, price of material will increase and eat into the profit margin of gloves manufacturer.