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Despite several setbacks TopGlove are currently facing, I believe Top Glove is highly UNDERVALUED at this point of time.

Why?

1) Demand for gloves has been surging up to 8%
2) The weakening of RM to USD.
3) Top Glove's quarterly report is coming out next week. Is a net profit of 41Million (last years quarter) that hard to outperform?
4) I believe this company has top management skills and acted swiftly in countering problems like electricity hikes and so on.

The downside risk is if the company fails to release a positive quarterly report in the following week.

More on the Technical Analysis side :

Top Glove share price managed to close ABOVE the 20 MA Two weeks ago, although falling short last week.

This is the first time it pierced Above the 20 MA in 3 months, displaying a bullish signal.

.   

The current risk to reward ratio is 0.03 sens (4.66)  : 50 sens (5.09)
Which is 1:13 considering a stop-loss order at 4.66.
 

With negative factors already taken into account of the share price, I believe this company
still has much to offer.

Short term Target price : RM5.09
http://klse.i3investor.com/servlets/stk/7113.jsp


DISCLAIMER:  All data and information provided on this article is for informational purposes only. I make no representations as to accuracy, completeness, or validity of any information on this articke and will not be held liable for any losses in relation to this article.