Hailat lo! Vaccine Out. Gloves Pok Kai.

Pfizer, makers of the iconic blue pill that has rallied men of a certain age to engorged tumescence, has announced their COVID-19 vaccine is 90% effective.

My buddy Trump kena “chor” by the STEM community – not exactly his most vocal supporters at the best of times. Positive news about vaccines filtered out almost immediately after his disputed loss. The timing has caused a few eyebrows to be raised, including mine. I am not a conspiracy theorist but I do believe the study results were withheld to avoid influencing the election – much to Mr. Trump’s detriment.

Back home, the news that an effective vaccine is on the horizon has been greeted with massive selloffs of glove stocks. Duopharma – a vaccine-related stock I bought at 4.15 (highest ever in its history) is finally in the green again. I thought I’ll never see the day! Figure of speech – I knew I would, or I would have cut loss. I was waiting for vaccine news to push it up before selling at a profit.

Our blue chip stock performance has mirrored the US upon Pfizer’s vaccine news. Banking stocks like Maybank, utilities like Tenaga and O&G stocks like Yinson has rebounded, stemming the massive losses from glove counters in my portfolio. Even Genting has rebounded and we’re still under CMCO! It’s almost as if investors expect life to go back to normal in the short-term!

However, almost 50% of my portfolio consists of glove stocks. It was disconcerting to see the gap down of Hartalega, Supermax, Top Glove, Kossan, Careplus and Mah Sing today. I own significant amounts of all these stocks. Today was not a good day for people like me.

It’s not time to write a will for your wife and drive to the Penang bridge though. The vaccine will not be ready in the foreseeable future. Mass vaccinations will take time. COVID-19 and CMCO will be a reality through most of 2021. This is exactly the knee-jerk behavior displayed on September 10th when glove stocks went through the same sell-off before rebounding.

I am still a firm believer in the upside of glove stocks. Here are 5 reasons I’m bullish on gloves. The Big 4 glove stocks are not some dodgy ACE market listing with a dubious performance track record. I am very confident about averaging down for these solid performers with excellent earnings visibility. Unfortunately, most of my spare cash is already tied up in the stock market but I will purchase more at the end of the month when my salary comes out. That’s how confident I am of the short and medium term prospects of gloves!

Keep calm and average down, financial gangsters!

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