Consider STGT vs. TopGlove.

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Consider STGT vs. TopGlove.

STGT now has a number of key enhancers at present, which TopGlove does not it seems. Realize, STGT only hedges about 40% of its currency exposure. The company so will benefit from any further Baht vs. US$ weakness, as the Baht currency is/remains under pressure -due mainly to the prolonged malaise in the important Thai tourist industry.  Here for contributing members I've expressed bullish views on STGT for many months.  Note, STGT is about to go XD for 2 Baht on April 12th.

Due to TopGlove's continued troubles, STGT will benefit as being a better institutional investor choice/responsible alternative, in lieu of now serious US labor abuse problems -and now a US ban on its products. This on top of just before significant CV19 infections at its plants. STGT has lower cost of fuel (a major cost in producing gloves) as it uses wood chips, vs. TopGlove more expensive natural gas. Its far from certain glove demand will drop off in 2 years, as India, Africa and China are huge untapped markets.

Besides, there is an aging of the global population all around -hence more medical care/gloves is a new trend. A broadening glove usage in all kinds of different industries, call it a new normal.  Similarly, decades ago ago sun glasses where more of a luxury, vs. now a necessity. A new normal, especially if there is another health/virus set back. 

STGT planned listing in Singapore will enhance STGT p/e valuation, vs. TopGlove's planned Hong Kong listing may now be in question or delayed? To me, STGT is a cleaner, leaner more responsible and higher CV company then its core competition.  While TopGlove's stock price got hammered of recent and may well be oversold now, I remain a skeptic and prefer STGT as a less risky investor alternative. As always its always about risk/vs. rates of return.

Paul A. Renaud.