Nevertheless, there's no signs that the avian flu H7N9 have subsided. Infact, number of infections and deaths have steadily climbed. Also, what caught my eye is EPF's (Employee Provident Fund of Malaysia) action of continuous selling of (Supermax Berhad) shares into the market.
Perhaps its just election jitters, something big is coming. Either way, investment banks are starting to upgrade Supermax's target price to at least 50% more than its current trading price. Also, the continual depression of latex prices, and lower than average fuel prices can only prove to benefit glove makers, helping to bump up its profit margins.
Today's post should also serve as a reminder that if this outbreak extends into an epidemic, stock markets will be expected to fall. Could this be the straw that breaks the camel's back? The world is already seeing falling factory productions and consumption. Some economists believe we are already in a depression. A severe epidemic like the avian flu will only serve to amplify the effects of the slowing economy.
Either way, Supermax Berhad, in my opinion will serve as a good hedge on the underperforming economy, potentially falling stock market, and avian flu outbreak.
If anything, BUY!
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