Glove stocks seem to be entering a fresh new rally, although there’s some retracement today. I succinctly described the slight downtrend to a friend as such:
Erectile dysfunction dy. Can’t up very long. Lembik.HB
I am rather proud of the occasional profane gems that spills forth from my oral cavity. I didn’t think it was going to retrace by much though. COVID-19 cases hit a fresh new high of 432 yesterday and 691 today. Exponential growth. I can sense the palpable fear in my friends and coworkers. People who don’t normally wear masks at their workstations are now donning one religiously.
You can see people on social media piling on the scorn and abuse for our Index Case Political Minister who came back from campaigning in Sabah and subsequently spread it to multiple people after not quarantining like a good boy. Ha kantoi! Veli good! 👍🏻
Back to my explicit analysis, I still believe that glove stocks are on track for a significant uptrend. Healthcare counters generally rise with the number of COVID-19 cases. All the Big 4 glove counters are trending in a similar fashion. I am also of the opinion that they’re all forming an inverse head and shoulders pattern and they’re set for an exceptional bull run. Please direct your attention to Exhibits A, B, C and D:
Limpeh will be the first to tell you hor, sometimes looking for patterns and trading signals is a bit like gazing at tea leaves in the hopes of decrypting your future. Okay la, maybe not that bad but it’s not 100% accurate. Beh zhun one. Caveat emptor and all that.
I personally am optimistic about the future of glove stocks. I don’t think the rally this time will match the previous crazy MCO bull run but it will outperform most other stocks. This is not a buy/sell recommendation, merely my thoughts. I’m very scared of the Securities Commission gang leh. I hear they’re very fierce. Much more ferocious than Big Bad Balan’s crew. They don’t 1v1 with bare hands. They play knife one.
A bit of history: I have resisted investing in glove counters for the longest time after missing the MCO bull run. I thought it’s a bubble that will burst soon. However, I changed my mind after delving into their annual reports, devouring various news articles, and weighing retail investor sentiment in social media and forums.
This is something I have learned in my professional development too. Never be too stubborn to accept alternative viewpoints. The worst thing you can do to yourself is to dig into your position and refuse to change your mind despite new evidence surfacing. Always be open to change and diverging opinions. It will not hurt your ego to say “I have reconsidered”.
I am now bullish on glove stocks, at least for the medium term. There is no other industry where you can see such high growth and earnings visibility for the next few years. I have so much confidence I reentered Hartalega at 17.50. Time will tell whether that’s fortune or folly. 😄
TLDR: Can, boleh pakai. Hoot 99! Ka ka cheong!
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