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20-05-2024, 11:17 AM
#2441
Originally Posted by Toddy
Excellent news then. That's the entire point of higher interest rates.
Decreasing the rate of inflation of course is the entire point of higher interest rates, not specifically crippling high price discretionary retail, which makes up a small part of the basket of goods and services that determine the inflation rate.
High interest rates actually currently pushing up prices of core essential items in the basket unfortunately, as the increased cost of capital is being passed through to consumers/businesses in the form of higher prices for many goods and services that are provided by entities with high debt loads.
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20-05-2024, 11:27 AM
#2442
Keep hearing gold and silver this and that. Prices must be high. Cant be good for MHJ
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20-05-2024, 11:39 AM
#2443
Originally Posted by Rawz
Keep hearing gold and silver this and that. Prices must be high. Cant be good for MHJ
At what gold price does the MHJ business model not work anymore.
Worth thinking and talking about. Because there has to be a price point where the average customer walks.
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20-05-2024, 11:50 AM
#2444
Originally Posted by Toddy
At what gold price does the MHJ business model not work anymore.
Worth thinking and talking about. Because there has to be a price point where the average customer walks.
Going from their update it appears it has already gone over the price NZ customers will pay.
Appears they are walking to Lovisa stores.
PS.I note MHJ's share price has halved in the past year,while LOV's has more than doubled.
Last edited by percy; 20-05-2024 at 12:06 PM.
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20-05-2024, 12:21 PM
#2445
They point out the price of gold being a factor in todays update, but lets be honest though that the margins MHJ has on their products would see gold as one of the smallest components of COGS.
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20-05-2024, 12:26 PM
#2446
MHJ, like all jewelry store chains, are structurally very good when they can leverage their relatively fixed costs (Stores & Staff) to serve a high throughput of customers. The overhead involved in selling to 100 people a day per store is fairly similar to selling to 25 people a day. However there is a hard limit to cover those fixed costs that really starts to hurt once you drop below it.
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20-05-2024, 12:36 PM
#2447
Originally Posted by LaserEyeKiwi
MHJ, like all jewelry store chains, are structurally very good when they can leverage their relatively fixed costs (Stores & Staff) to serve a high throughput of customers. The overhead involved in selling to 100 people a day per store is fairly similar to selling to 25 people a day. However there is a hard limit to cover those fixed costs that really starts to hurt once you drop below it.
And getting out of expensive leases is another issue.
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20-05-2024, 01:05 PM
#2448
LEK ....I assume you got rid of MHJ shares when they were buying them back in the in the 120/130s
You waiting to get back or is a case of never again
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20-05-2024, 01:40 PM
#2449
Originally Posted by winner69
LEK ....I assume you got rid of MHJ shares when they were buying them back in the in the 120/130s
You waiting to get back or is a case of never again
Had to check, was all the way back in Nov 2022 at $1.35.]
Haven't been following too closely since, but damn that price looking tasty if someone was looking for a long term return.
Last edited by LaserEyeKiwi; 20-05-2024 at 01:41 PM.
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