Yes that's my view, it may be more like two quarters for the costs to flow on to receipts. My guess is they are running a tight ship in terms of the amount of inventory on hand, which is not a bad thing, but the risk is that they end up short handed.
Particularly my concern is about taking their eye off China and being caught with insufficient supply to feed demand should sales continue to grow there.
I don't know why the invest so much in USA where the potential long term reward just isn't there. China sales will overtake USA pretty soon and at that point it will look even stranger that they fixate so much on USA, where the prospects for growth just aren't that great.
BUB Price at posting:
12.3¢ Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)