HLG - Hallenstein Glasson

[winner69]

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

[Balance]

Absolutely right and this is the biggest threat to global trade & prices, particularly for very small far away markets like NZ where we are finding it increasingly difficult to even get the shipping companies to service us. So lets all thank our lucky stars for our farmers for growing food that the World needs. Without them and their valuable exports we'd have no shipping service to/from NZ
This is not likely to change lower anytime soon as there is simply not enough shipping capacity and it will take years to rebuild, so no pressure on current freight providers to reduce prices.

This will lead to serious inflation in NZ & around the World. HLG will be affected like everyone else, whether importing or exporting. https://www.bloomberg.com/news/artic...rice-increases

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.

[Beagle]

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.

[Waltzing]

"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.

[LaserEyeKiwi]

Also worth pointing out that shipping costs on clothing is rather tiny per unit.

[Beagle]

Also worth pointing out that shipping costs on clothing is rather tiny per unit.

I am slightly tempted to post a link to Glassons swimwear section of their website as some of those clothing units are really tiny ...but we live in such PC times these days you never know who might be offended.

[Balance]

I am slightly tempted to post a link to Glassons swimwear section of their website as some of those clothing units are really tiny ...but we live in such PC times these days you never know who might be offended.

Haha - the glossy AR is enough?

[Old mate]

Link please

[see weed]

I am slightly tempted to post a link to Glassons swimwear section of their website as some of those clothing units are really tiny ...but we live in such PC times these days you never know who might be offended.

Them their swimwear don't weigh very much. Would air freight be better cheaper and faster? And how much extra to pay for clothes to cover freight, an extra 50c per garment Whoopy do

[Beagle]

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