From the chart, it does suggests that the price might fall below RM 5.40 before there is any chance of rebounding. But looking at the fundamentals closely, one would realise that Supermax should rake in a profit of RM 6 billion by end of 2021 which adds about RM 2.20 NAT for each shareholder and someone said that just from interest alone, RM 6 billion should earn a minimum annual interest of RM 100 million. In any case, if the ASP drops, the ones to close shop first are the newbies/pretenders, which in turn reduces competition further.

Kossan call warrant C7 has a strike price of RM 4.00, so if the settlement price (mother share closing price or 5 days VWAP) is ABOVE RM 4.00, the issuer is obliged to settle to each warrant holder, the difference in the two prices divided by the conversion ratio.

However, if the settlement price is below RM 4.00, the warrant holders will get nothing. Note that C7 only will expire on the 26 Apr 2021.

The next call warrant that has a slightly higher strike price is C9 which has a strike price of RM 5.00 and expires on the 15 March 2021.

Unless there are funds out there (that are not the issuer of these 2 warrant) that see Kossan shares as severely under-valued and and start to buy them up consecutively over the next few weeks, Kossan share price I suspect will remain low.

If you can recall, several years ago, AirAsia was shorted from RM 2.00+ to around 70 sen because of a report from Hong Kong that had cast aspersion that Tony was siphoning out money. The share price then rebounded as quickly as it plunged. Another case in point is Wilmar recently.

So let us not fall into the trap of short-sellers. Of course these short sellers have deep pockets and can push price down further but if the fundamentals of these companies are good, it would rise eventually just like AirAsia and Wilmar. It is a game of poker.

What are the fundamentals :-

If TopGlove CEO had said the lead time between order and delivery for some customers is more than 365 days, it does indicate that current world gloves producers are unable to cope with the demand, otherwise, these customers would have been able to source from alternative producers.

Secondly, medical gloves from new producers can't just be approved overnight; there is a series of checks and audits that recipient countries will have to do before they are able to certify them. In other worlds, the barrier of entries for new producers is high I suspect.

Lastly, if my memory serves me right, Hartalega management had said that acute supply shortage will only ease after 2022.

TopGlove and Kossan I am sure are rectifying their respective labour problems as speedily as they can but in the mean time, I doubt the hospitals will take the risk of instructing their medical personal to not wear gloves just because of the on-going issues.

Is the typical greater good decision making; ie., is saving lives more important now or solving labour problems?

I bet saving lives will take priority and management of the hospitals would give the glove producers the room and deadlines to rectify their management lapses.