No disrespect to Forager but no one knows what is going to happen- anyone who pretends that they do is kidding themselves. I do agree that management attention will and should be on bedding down the current acquisition.
However, a distinct possibility is the case that the Australian economy and particularly the demand for tyres within it, responds far more sharply than other economies AND the data I have seen to date suggests to me that the fiscal response has been much better targeted to consumers in Australia compared to overseas comparators, and the boon of having strong sectors of a very diversified economy (such as mining) may actually cause a significant increase in demand. If that is the case, the debt from this acquisition will be paid off in no time, and there may be opportunities to expand internationally particularly if a poor response to the virus continues overseas and governments can’t get their stuff together.
I am not saying this will happen (I am the first to admit here I have absolutely no idea), but the numbers coming from listed Australian operators in the tire industry seem to be better than internationally and I want to know why- ie is it to do with industry structure, currency or the status of the economic recovery (or more likely that given my lack of knowledge something else I’ve missed entirely!!!).
NTD Price at posting:
58.0¢ Sentiment: Buy Disclosure: Held
(20min delay)