FBR 6.67% 3.2¢ fbr ltd

FBR Mexican Opportunity

  1. 1,495 Posts.
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    I have said it before and I will say it again, I don't understand the fascination FBR has to try tackle the Mexican market with their low wages when we literally have a market in Australia with high wages and a shortage of brickies and an expanding population. Wouldn't this make the HX machine more valuable in Australia than in Mexico.

    Australia would be more beneficial for the following reasons:
    1) Logistics perspective - with the machines already available in Australia for using and maintaining.
    2) Management oversight perspective - with management residing in Australia.
    3) Securing our IP and ensuring it doesn't fall into the wrong hands in a jurisdiction outside the control of Australian law.
    4) Testing and adapting/refining the machine with all our current engineers located in Australia.

    This leads me to my first theory:
    All this leads me to think that for it to be worth FBR's time in looking into Mexico, they must have received some very strong interest from Mexican businesses that would be super close to a done deal. It would have to be enough of a done deal for them to forgo the opportunities/advantage of rolling out in the Australian market.

    This leads me to my second theory:
    If I follow through on this line of thinking, I would speculate that Mexico's proximity to the USA and their low wages makes Mexico somewhat of a good place to set up manufacturing capabilities. They would open a market with HXs servicing the Mexican market, set up manufacturing facilities and then also service the USA out of Mexico.

    I'm interested to hear if anyone else has a theory on this...

    All my opinion only. Do your own research. Not investment advice...



 
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