How low will it limbo?, page-2

A great deal of water has passed under the bridge since the half year report in February. Subsequently, stores were closed for a 7 weeks from late March. Online sales got a boost and were up 80% during this period but they formed just 10% of sales prior to the shutdown so for that time we might expect that sales were running at only about 18% of normal trading. I think it is anyone's guess as to the impact on cash flow and inventory overhang but this situation is not unique to Mosaic. There has been no guidance from the company as to the impact on sales or profits which leaves the share price open to speculation.

All of this makes the upcoming reporting season a very important one. Sometimes we can get a form of guidance courtesy of director purchases but no on-market purchases have been made by any director of Mosaic for a number of years. Accordingly the share price is going to ebb and flow at the whim of market sentiment until hard numbers are provided. I would normally expect a trading update in July if results were significantly different to expectations, but the company withdrew earnings projections back in February, so we may have to wait until late August for any clarity this year.