Medtecs

Medtecs: (S$0.069) Hazy outlook ahead
Relatively tepid trading in Medtecs in the early session, after the counter’s stellar 19.6% gain in the past five days, as traders speculated on a potential boost in sales for the company’s N95 respirators.

With an upcoming slight haze situation over the next two weeks in Singapore, as well as the confirmation of El Nino in mid-May which could lead to higher incidence of forest fires in Indonesia’s Sumatra region, punters are hopeful for good sales of the mask manufacturer.

Further, there is an increasing possibility of a MERS (Middle East Respiratory Syndrome) contagion in the region, underpinned by the rapid rise in number of cases in South Korea, which has shut its doors at over 500 schools today.

According to protection guidelines issued by America’s Centre for Disease Control and Prevention and the World Health Organisation, healthcare workers are to wear the N95 respirators when dealing with cases.

Historically, Medtecs has been a play on haze and will come into focus whenever the pollution index gets news coverage.

At the current price, Medtecs trades at 58x historical P/E and does not have any broker coverage.