At least no news from HLG is good news - that's good
But if 'not so good' news comes out from them expect share price to collapse - past would suggest 20% drop is possible. HLG is that kind of stock - very susceptible to bad news to panic holders
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At least no news from HLG is good news - that's good
But if 'not so good' news comes out from them expect share price to collapse - past would suggest 20% drop is possible. HLG is that kind of stock - very susceptible to bad news to panic holders
Yup - every importer (and exporter) is and will be affected until conditions normalize - and normalize there will because Economics 101 tells you that super profits in commodity markets (and freight is a commodity) do not last.
So it comes down to the pricing power and ability of the business to absorb and/or pass on cost increases.
Most of the listed retailers have showed that they can pass on the cost increases (HLG, WHS, BGP, MHJ to name 4). Likewise, car, machinery and building material importers.
So do your analysis and decide on your investments accordingly.
Well said. Increased shipping costs is not a new issue and HLG talked about the impact of this at some length in their half year report. They have had plenty of time to adjust their pricing and business model and higher costs are being passed on to customers.
By and large I think there is widespread awareness amongst consumers of the issue and an acceptance that stuff, weather's its bikinis or boats or anything in between, costs more.
"very susceptible to bad news to panic holders"
scaring the horses....
Costs of shipping are fluid and the impact of this might not turn up until xmas..
Ships are back up out at Mount?
Board games shipping costs from china reported on BBC were impacting profits on importers.
Also worth pointing out that shipping costs on clothing is rather tiny per unit.
Link please:t_up:
Must try harder not to be a naughty dog posting links to sexy sections of website is bad dog behavior.
Here's a link to their most recent half year report though. Useful to reflect on that and ponder the full year outcome. http://nzx-prod-s7fsd7f98s.s3-websit...324/344977.pdf