Ebola Outbreak - Glove Stocks Time?

Recent news of the West Africa Ebola outbreak has bombarded many of the news media. While there is no new findings of any possible vaccine available, the high mortality rate of ebola virus: often between 50%-90% has brought more attention on disease control and prevention. The usual prevention includes washing hands and decreasing the spread of diseases from infected monkeys and pigs to humans. Ebola viruses are easily transmitted through blood or bodily fluids and this has brought attention to the need of wearing protective clothing such as gloves in handling meats or treating patients.

I believe there will be a continued spike in the industry's global demand for gloves which will help neutralize the ongoing concern of gloves oversupply. Below is the current chart for the Friday closing market as of 1st August 2014, 5:00 PM. Rubber related counters will be poised for recovery underpin by strong demands of medical products such as gloves with the worsening issue of Ebola viruses outbreak.

I'm currently holding a position in SUPERMX with a mid term TP of RM 2.60. SUPERMX will be retesting the 100 days EMA and the first level of resistance of RM 2.40.

Supermax Corporation Berhad

Topglove Corporation Berhad

Kossan Rubber Industries Berhad

- Ben

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