Anavex Life Sciences Corp (AVXL)

[whiskeysausage]

Top123, Good question.

Yes, there are secondary and tertiary suppliers, but having talked to a few purchasers, they cannot ramp up production with new orders (to compensate for China's inability to support pre-existing orders) until summer 2020, because of preexisitng current secondary and tertiary market orders from India, Malaysia, etc.

Frankly, no one appreciated or anticipated that China's economic engines would ever come 'off-line' - so there wasn't a contingency in place.

So it's like we were all standing in line at the IMAX theater to see the new-new Star Wars, we bought all the tickets, so all the other people had to buy their tickets at normal movie theaters.

And then the IMAX catches fire and burns down to the ground.

Now, to see star-wars, the world supply chain has to get to to the back of the line at the regular theaters, or OVER pay to jump line - if we see that, then that's inflation, and rates increase, and that's a whole different bag of worms.

But the supply issue is real, as gangs are now raiding stores and warehouses in China to gather basic and high-demand supplies - hand sanitizer and toilet paper is a big one. THIS IS IMPORTANT because it means that DOMESTIC CHINESE economies cannot even support themselves, let alone the world's, or ours, across the ocean.

https://www.bbc.com/news/world-asia-china-51527043

Again, Anavex benefits because it has cash on hand and is not dependent on any major logistics support to maintain its position.