The problem is Mr Hog, these are the same kind of thoughts that I was thinking about Scott Technology and Fisher and Paykel (as it was then, a combined group) in 1997.
I don't want to leave the wrong impression on this thread. I went into SCT for the purpose of receiving ever increasing dividend income through company growth and this objective has not been achieved. Am I content with this situation? No. Do I know of any listed exporter that has done significantly better over the past twelve years ? No
So what does this tell me? Do we have an 'exporter' problem? Is there something 'company specific' wrong with the way SCT has been managed over the last twelve years? Perhaps, although Chairman Marsh's low to no debt policy was a big help during the credit crunch. The direction of management has changed in the last couple of years so it is not as if the company is doing nothing. Whether it is doing enough remains to be seen.
I heard a representative of Rakon on the radio this morning bleating about the high exchange rate and how they are having to make more and more of their chips overseas. He didn't have any answers for what he wanted the government to do. But he admitted that as long as Rakon is just an 'input cost' on the the manufacturing sheets of large cellphone manufacturers, margins will remain under pressure. Needless to say I am not tempted to invest in Rakon.
SNOOPY
discl: hold SCT
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