In this period of Covid-19, glove manufacturers and companies that supply to the healthcare sector have rallied substantially. While the price rally for the well-run profitable glove manufacturers is justifiable, it is hard to make a case for the huge rally in smallish glove manufacturers and companies involved in the healthcare sector or supplying input to the production of masks or sanitizers. Below are some stocks that have been played up substantially, which we should avoid or, if you are fortunate to have bought earlier, you can consider taking profit.
Table 1: The Also-ran Shines
Just look at how much they have rallied in last 2 weeks!
Chart 1: Carepls's monthly chart as at May 5, 2020_10.30am (Source: Malaysiastock.biz)
Chart 2: Comfort's monthly chart as at May 5, 2020_10.30am (Source: Malaysiastock.biz)
Chart 3: Ruberex's monthly chart as at May 5, 2020_10.30am (Source: Malaysiastock.biz)
Chart 4: Hexza's monthly chart as at May 5, 2020_10.30am (Source: Malaysiastock.biz)
Chart 5: LKL's daily chart as at May 5, 2020_10.30am (Source: Malaysiastock.biz)
If you want to have exposure to some stocks which may benefit from increased sales as a result fo Covid-19, I believe the bigger glove manufacturers are safer- though they are hardly cheap at this point of time. I prefer Kossan. See the table below.
Table 2: The Big Dogs
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