Where did you get that "Normally contracts don't allow for price increases in the short term, hence margins getting squeezed."
Most agreements in this space include 2 key rise and fall adjustments, being resin prices and currency.
The reason why the last CEO was given the flick was that he took too long to move the price and it hit the bottom line. This was clearly stated in the annual reports. Back then there was a perfect storm in that the resin priced increased at a rapid rate as the A$ dropped at the same time. The combination was massive all at once.
PGH Price at posting:
$3.13 Sentiment: None Disclosure: Not Held
