Most of the companies around the world saw their share prices receiving a real hammering when COVID-19 struck. But, not all of them suffer the same fate. The US tech giants and Malaysian glove makers, in fact, had one of the best bull runs in their share prices.
However, I still think valuation for the big US tech stocks is still fair. But it is a little bit the other way round for glove companies.
Do not get me wrong. Glove demand is much higher now and higher in the future. But there are a few bearish cases that you should consider. This is especially true if you are having the “fear of missing out” urge to jump right in now.
1. Permanent Pandemic-Driven Demand?
Malaysia is well known to be supplying around 60% of the global glove demand. It is home to the top 4 biggest glove makers in the world – Top Glove Corporation Berhad, Hartalega Holdings Berhad, Kossan Rubber Industries Berhad and Supermax Corporation Berhad....