Thursday, April 04, 2013

Bird Flu- making a return?

A few hours ago, CNN reported that a third person has died in China from an unusual bird flu (aka avian influenza) strain which was not previously detected in humans (here). Todate, the total number of people infected is nine. This is however not the first time that the bird flu has re-surfaced. From an article in Wikipedia, we learned that "(w)hile its most highly pathogenic strain (H5N1) had been spreading throughout Asia since 2003, avian influenza reached Europe in 2005, and the Middle East, as well as Africa, the following year. On January 22, 2012, China reported its second human death due to bird flu in a month following other fatalities in Vietnam and Cambodia". We can only hope that this latest outbreak will be contained.

If the bird flu were to spread, one industry that would benefit is the rubber glove industry. Below, I have appended the daily charts & monthly charts for Topglov & Kossan. If Topglov can surpass the RM5.75 level and similar if Kossan can surpass the RM3.75 level, both stocks may start on their upleg. Watch the news & these charts closely.

Chart 1: Topglov's daily chart as at Apr 4, 2014 (Source: Quickcharts)

Chart 2: Topglov's monthly chart as at Apr 4, 2014 (Source: Tradesignum)

Chart 3: Kossan's daily chart as at Apr 4, 2014 (Source: Quickcharts)

Chart 4: Kossan's monthly chart as at Apr 4, 2014 (Source: Tradesignum)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Topglov & Kossan.

1 comment:

ronnie said...

Investing in rubber glove manufacturers on the news of bird flu is like buying JCY when Thai experienced heavy floods last year.

Good luck