TWD 1.47% $2.68 tamawood limited

May sound counterintuitive but it is probably a better time to...

  1. 912 Posts.
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    May sound counterintuitive but it is probably a better time to establish market share. If competitor x had $100mil in turnover and 10mil of overheads and builds fall 50% then the their overheads are now 10 mil on 50 mil in revenue. In other words overheads have gone from 10% to 20% and thus their pricing must increase 10% or they must lose money and restructuring a cost a lot too so these would exacerbate he issue.

    For the reason of overhead drift, a falling market will actually help tamawood take a larger portion of market share and while initial growth may be slower than in a boom market, tamawood would be well ahead compared to a boom market in ten years given that they should be able to steal more market share now if build levels were to fall hard.
 
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