Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
They will need to sell a lot of 99p cards to offset a rise in cost of goods sold. A rise of 5% in COGS is about 12 million, 10% is about 24 million on current sales. We have no idea about demand, but we do know that cost increases are baked into the cake for this year. Current year profit = 11 million. If they manage to stand still in terms of profits, they will be doing very well. If they double profits, then the stock is still trading on a PE of around 15 x, which is hardly cheap. Worth revisiting in the low 50s IMO. If I'm wrong, then I've missed a great opportunity!
Dear all, is there anyone on this board with experience of the construction industry who can tell me how rising material costs are dealt with in long-term contracts? As all materials are going up n price, does Costain take the hit or are they passed on to customers?
Costs must be rising sharply for all pubs, and today’s inflation data shows beer prices rising less than inflation, ie not keeping up with other costs. Any price rise might be enough to deter customers. Profit warning sooner or later...
I too am confident about the long term but in my opinion we may soon have a “waterfall “ moment in the US market, and Rolls will fare as badly as any other stock. I have no target, just tight stops. I hope I’m wrong.