MHJ - Michael Hill International.

[winner69]

My apologies in advance if it's already been done on this thread, but I couldn't find. Here's a question.

What, if any, correlation does the weekly MHJ chart show with the POG (priced in USD)?

Very little (if any) correlation ftg ...... best I could get was over the last year a 2% corelation and it was positive while you were probably looking for a negative correlation eh

Conclusion - there are other things besides pog that affect the MHJ share price

[FTG]

Very little (if any) correlation ftg ...... best I could get was over the last year a 2% corelation and it was positive while you were probably looking for a negative correlation eh

Conclusion - there are other things besides pog that affect the MHJ share price

Ok interesting, thanks Winner.
A supplementary question for you. Historically, when MHJ's material costs (POG, POS etc) have trended up or down for a sustained period, has MH maintained GP% at the same level or does that GP% performance tend to correlate with the predominant trend in the bullion market?

PS. Sorry I know, I'm being a slack*rse asking, I should probably just look at the financials for the last decade.

[FTG]

Very little (if any) correlation ftg ...... best I could get was over the last year a 2% corelation and it was positive while you were probably looking for a negative correlation eh

Conclusion - there are other things besides pog that affect the MHJ share price

Ok interesting, thanks Winner.
A supplementary question for you. Historically, when MHJ's material costs (POG, POS etc) have trended up or down for a sustained period, has MH maintained GP% at the same level or does that GP% performance tend to correlate with the predominant trend in the bullion market?

PS. Sorry I know, I'm being a slack*rse asking, I should probably just look at the financials for the last decade.

[winner69]

Ok interesting, thanks Winner.
A supplementary question for you. Historically, when MHJ's material costs (POG, POS etc) have trended up or down for a sustained period, has MH maintained GP% at the same level or does that GP% performance tend to correlate with the predominant trend in the bullion market?

PS. Sorry I know, I'm being a slack*rse asking, I should probably just look at the financials for the last decade.

MHJ Gross Margin % over last 5 years has been pretty consistent - it was down in F20 and they put this down to forex.

So I’d say no correlation between pog / pos and MHJ performance.

They seem to manage to manage their selling prices well enough to manage changes in input costs

Trust them to continue doing this

[FTG]

MHJ Gross Margin % over last 5 years has been pretty consistent - it was down in F20 and they put this down to forex.

So I’d say no correlation between pog / pos and MHJ performance.

They seem to manage to manage their selling prices well enough to manage changes in input costs

Trust them to continue doing this

Thank you Winner. A sign that management have good controls in place.
Albeit being a pure retailer, perhaps they are in the unique position of being more of a price maker rather a price taker?

With POG potentially having come off an extended bull trend, peaking 11 months ago now, it shall be interesting to see how they maintain GP%. Especially if the price of bullion now trends downwards for an extended period, and meanwhile fixed costs continue to rise.
One would think that as the price of Bullion drops customers' pricing expectations would lower too?

[FTG]

Another double up

[Waltzing]

Its looking like a Glassons story..can you have enough? Does MR B hold? Is this the new HLG?

[Rawz]

No you cant hold enough. Top holding. Very happy. Probably hit $1 today. Not much on the sell side

[Waltzing]

"No you cant hold enough"

well done that investor.

[Rawz]

In all seriousness thou, Michael Hill are at the backend of a multi year store rationalization program whilst building an excellent online presence (including a stand alone online only off shoot, which I cannot remember the name of right now, showing were managements thinking is). Their 'Brilliance' membership program has been growing exceptionally well.

Whilst closing down stores the sales seem to have been shifting online or to other nearby stores with incredibly high online sales growth and consistently high same store sales growth. Great for margins when you can sell the same amount with less stores..

The brand brings a reasonable moat in NZ/Aus imo and Canada has a lot of growth ahead of it.

Overall management seem to be dialed into what is needed to make an individual store tick, I have a lot of confidence in management and with Rob Fyfe recently moving to chairman of the board (with a big shareholding) I am even more confident in this turn around story.