Michael, I suggest reading some of the earlier post on this thread if you haven't already.
My brief thoughts on the stock;
First, latex gloves, their primary business, has seen exponential growth due to AIDS/HIV and other new viruses. Most medical professions, as well as public safety professionals recommend double gloves for employees when working with blood, bodily fluids, needles, etc. Hospitals, Doctor's offices, including ambulance, fire, and police workers - yes, they all carry latex gloves for working with accidents - any, I mean any exposure to fluids require it! Labs, university research departments, students working with rats, etc., etc., etc. Lawyers and Insurance company policies are going to make this company unbelievable money!
Second, current manufacturing capacity and raw materials are in S.E.Asia with additional capacity to be added soon in the same region. While social unrest in SE Asia is a serious risk to be taken into account when evaluating this stock, the cost of goods just became SIGNIFICANTLY lower due to currency devaluation's. Also, the cost to transport goods is lower due to the price of oil (I should know, my oil service sector stocks have been taken out 40-50% in the last 3 months).
I would think, if all these other companies are issuing warnings to earnings coming in low due to SE Asia currency issues, then SFSK should BLOW the roof off of earnings. That's a very big if. They may do a little creative accounting and keep the earnings stashed away - who knows - but the possibility for a earnings windfall exist.
Third, there's a chance one of the big boys will snap this company up. They are looking for businesses that can add earnings straight to their bottom line, and this is one.
Just my very optimistic opinion,
Scott |
