medical supplies companies diff la, harta etc also keep going up ma.

how about the MCO? do you think it will be extended again?

The fact that you are posting this message mean it’s not time to buy yet. Hahaha

It is kinda crazy to see the PER people are paying for their overpriced gloves stock.

At first I thought ok, consistent dividend but over the past 2-3 years, gloves stocks are moving nowhere. They just kept going up defying common sense. Hartalega will be around 70PER if they reported another 3.x cents for Q4.

We used to provide materials to contractors for the mechanical structures for some of them. They had slowdown quite a lot over the past few years due to over capacity and pricing wars. Even now with the pandemic, I dont think there will be shortages.

For nitrile gloves, the raw materials are bought in USD. Therefore the rise in USD should not affect profit margin.

As for natural rubber gloves, competitions are hot.

No doubt for short term, the demand would be still strong.

But at the sametimes, there are many new gloves factories in the pipeline as well. Many companies have been expanding significantly over the years due to good growth and profit.

Eg. PPE like face mask, its production quantity also increased dramatically globally just within a month or two, we no longer see acute shortage like last month or so.
It is not like supply will be staying stagnant in quantity.

More people will wear face mask, which result more demand but supply also increase in tandem as well.

When an industry is in high demand, and good profit, many others also want to join in the bandwagon as well, not to mention competitors may be expanding rapidly as well.

Near to mid term, prospect still good for those industry, but do not carry away or over-hype.

PPE, healthcare equipment hype may easily a replicate of peak oil (or oil will be always in high demand) hype 12 years ago.
I could be wrong though.

Actually there's no more expansion from glove sector. Some like Hartalega and Supermax are just doing what they have been planning for years, completing the big upgrade albeit very slowly. We did supply the parts for first 2 factories in Sepang in 2012 IIRC, then the new boss suddenly changed contractor due to some communication issue with my client. It was even more messy with the new contractor and the change in design was so bad that they couldn't keep factory 3&4 running full time. After tiptoe for a year or two, they went back to my client but damage already done. The change in design was permanent since Hartalega already bought the steel material thus no choice but to opt out. Last I heard they were on the way to complete 5&6 which is final completion for Sepang.

Before this, they were considering to refurbish old lines in old factory but even that was scrapped due to forecast lower demand. Personally I dont see a way how gloves would return to those days. The only expansion that you would see is probably from those smaller sized one like Careplus or VIP gloves.

Gloves are still very profitable no doubt, but why would you pay RM7 for Hartalega (example) when you are only getting less than 10cents back in dividends. Its recession proof but other than that, there's no reason to pay a premium for gloves counter when they are all trading at over 30x PER.

will la. now is no logic trading. people buying on optimism 

so we are close to getting a vaccine now??

economy is expected to recover very soon? All countries ease their lockdown?

bear market over and recession is cancelled?

See cut 25 or 50bps....

Hoping for 50bps

Positive for capital investment, FDI and high debt load company, but the positive might be overshadow by a weak local and global consumer market.

Negative for banks. Reprieve for property sector. Weaker MYR.

more chaos the best, better second round of Covid, then all stock turn red red, pretty color ^^