Following on from my previous post about why hospital and clinic stocks aren't doing as well as expected, we shift our attention to listed glove makers. Since the Covid-19 pandemic, glove makers have soared, as shown in the chart below. My article aims to explain the strong performance of glove makers and also highlight certain risk factors that investors should be comfortable with before investing.  Other healthcare stocks performance (Source: Yahoo Finance) Confluence of tailwinds

1. Soaring demand

Due to healthcare requirements, the demand for natural and synthetic rubber gloves is expected to soar. According to the Malaysian Rubber Gloves Manufacturers Association (MARGMA), they expect demand to be 345bn pieces in 2020 vs 298bn pieces in 2019 (+16% yoy).  The stronger demand has given glove makers the opportunity to raise average selling prices (ASP). It was reported that Top Glove has raised ASP by 3-5% in Feb/Mar and will be going to...