I hear what you're saying Ocker and the AUD fall will certainly...

I hear what you're saying Ocker and the AUD fall will certainly affect MCP.

It was, in part, the plunging AUD in 2009 when the world was ending that sent MCP down to the 20-30c range as PPT dumped shares.

Given that Australia (like NZ) has a limited manufacturing base and MCP's competitors are in the same boat it will all depend upon their ability to pass on the costs and consumers willingness to bear these increases. I don't think any competitor of MCP's will have an advantage over them.

In terms of the diversification of product lines I think that it is essential that MCP move away from the stranglehold that the duopoly supermarkets have over suppliers and into product ranges where suppliers have more leverage. Otherwise the future will be very bleak.

In terms of MCP's ability to pass on cost increases many of their product lines (e.g. personal care) are relatively small dollar value purchases and thus a 10-15% increase in price on, say, a $5 pair of nail scissors shouldn't be a big deal - A little different I guess if you're importing US manufactured cars or something.

At $1.18 I think MCP is value for money. However, from experience, these things can always become better value for money and without a catalyst will likely continue to drop in price.

At some point I will be buying more, not just yet though.

Cheers
John