MQ Research believes manufacturers with the highest exposure to the Asia market and with the highest capacity additions could be the biggest beneficiaries in terms of sales volume from this virus outbreak. Thus, any spike in demand could tilt the pricing power back to the manufacturers. Who will be the biggest beneficiary? Glove manufacturers are running close to an optimal utilization rate of 85%. The upcoming travel period around the Lunar New Year holiday could spark an acceleration of the outbreak and spur global glove demand. If the outbreak is prolonged, there could be a spillover to rubber gloves. MQ Research believes Chinese buyers have increased demand for cheaper vinyl gloves in the first instance. MQ Research’s checks show glove manufacturers have not yet seen a surge in glove demand on the back of the virus outbreak. You can try to rationalize why you shouldn't jump in, but you cannot block a momentum rally owing to a significant perk in "substantive factors" in a stock's earnings prospects.ĭemand yet to surge, but this could happen anytime soon. So, please, leave your principles, values, morality and political correctness behind. How the situation develops is part of the fundamentals' story. I assess these stocks as an investment option. Hence, my views here are not an indication of my values barometer.
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