thaongoc: You can bank on rubber to bounce past market jitters

DESPITE yesterday's partial market recovery, the search for defensive stocks that still offer growth potential is really on.

One that is well worth putting on the list is Ansell, given that demand for healthcare consumables such as latex gloves doesn't go up and down with stock market gyrations.

That means Ansell's sales in the US and Europe should hold up well while its Asian sales continue to grow.

Ansell has worked hard to diversify its product range through careful acquisitions such as Sandel's sharps kits and specimen handling products and Trelleborg's chemical and dry diving suits, although the glove and condom business is still the profitable mainstay.

However, the big untold story behind Ansell is that falling rubber and latex prices should help to cut raw material costs for most of its products at the same time as sales remain strong.

Rubber and latex futures have been falling sharply on most exchanges after reports of a developing oversupply in China, although they are coming down from historically high levels.

The combination of growing sales and shrinking raw material prices should produce some pricing power and profit

http://www.heraldsun.com.au/business/in-the-black/you-can-bank-on-rubber-to-bounce-past-market-jitters/story-e6frfinf-1226385311802

(ldtn)