I personally tag glove makers as “covid cyclical”, you see when covid was (probably) at its peak, glove counters already started to going down – it looks like typical cyclical behavior.

Reasons behind gloves fly to the Moon and back to Earth are all about future expectations of future sales, profit margins and the most important earnings. Another factors why gloves went out of focus (for some at least), is because of:

1) covid seems to getting under control

2) producers maximized their production and increased supply

3) new competitors show up and increased supply

But today after a good news, TOPGLOV and others got some boost. Many maybe reasoning their previous pessimism was overdone or timed too early. If it is the case time will show. As I said its all about the future outlook, even when now sales are still good its all about the future. If revenue will be elevated for longer or even increase (because of vaccinations) and manufacturers will be able convert their revenues into good earnings, there is still some hope for them.

Winner should be the company with strongest financials, but again it all depends on sales and its conversion into earnings.

Have a look at steel players HERE.

Read more on my blog: https://miloshtrading.blogspot.com

Disclosure: Im not holding any of above.

Disclaimer: Im not a professional financial advisor, analyst, economist or an  accounter.
This is not a trading recommendation / advise, just my personal view.

These articles are not trading recommendations, just expression of my personal views, please do your own "homework" when deciding to invest! Im not licensed advisor by SC and I am not recommending any action to buy, hold or sell. All articles here are based on publicly available data from Bursa Malaysia, accessible to the public and I am using investment strategies / ratios which are too available to the public from many sources such as wikipedia or investopedia. This blog is non-profit, non business, and I don't benefit from it in any possible sense.