High risk purchase in HHC a low margin high volume business. CKL usually resides in the niche high margin world so they are taking a big gamble against bigger players. They have competent management so may pull it off.
The decider for me though is manufacturing in Australia, while labour remains in power forget it, CKL may have swallowed more than they can digest, time will tell but I much prefer the flexible source and sell strategy PPG are following with a big player supporting them.
PPG Price at posting:
48.0¢ Sentiment: None Disclosure: Not Held
