Koon Yew Yin 10 Feb 2021
The chart shows Supermax share price was Rm 10.70 on 19 Oct 2020 and has been dropping in the last 4 months to close at Rm 6.20. It has dropped Rm 4.50 or 42%. The price is dropping because of short sellers and manipulators. They are selling so that that have money to buy at cheaper price to make money.
On hindsight shareholders would regret if they did not sell. They should have sold so that they have money to buy at cheaper prices. Those who did not sell must be wondering if they should sell or not at this price level. Those who have buying power must also be wondering to buy or not at this price level.
Many scientists predicted that the Covid 19 pandemic will not be completely over for another 4 or 5 years despite the mass vaccination. To prevent the spread of the virus, at least 70% of the world population must be vaccinated. Only the rich countries can afford to buy the vaccine. All the poor countries cannot afford to buy the vaccine.
As a result, the demand for glove will continue to exceed supply and all glove makers will continue to increase their selling prices to make more and more profit.
To help investors decide to sell or to buy, I have tabulated Supermax’s share price and its half year EPS to compare with a few other leading listed companies.