MOZ mosaic brands limited

Fear of the coronavirus is severly impacting the markets short...

  1. 8,128 Posts.
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    Fear of the coronavirus is severly impacting the markets short term view of MOZ, with the concern that adequate supplies of winter stock might not be shipped to Australia in time.

    I think, whilst this is a risk, it is currently reflected in the depressed price of the shares.

    I just got in contact with some mates who work for a major international logistic and freight company, he informed me that at whilst there is currently next to no inbound ship cargo from China, there are orders being placed for ships leaving starting in the next week or so. So there will be at least a partially degree of normality starting March. Given time on the sea and customs clearance, this means stock should begin arriving late March/Early April.

    Currently the Australian government has a 14 day quarantine on shipping leaving Chinese ports. But the reality is that the ship usually takes 2.5 -3 weeks to travel to Australia anyway. So this 14 day quarantine does not really have any delay on the shipment of the cargo (although I guess the risk is that if the ship got infected whilst on international waters, then it wouldn't be able to dock in an Australian port, which would delay the cargo.

    On a fundamental basis MOZ stacks up as a buy at around $1.43. Their half year result was good under the circumstances, and the good part with the clothing retail sector doing it so tough, those that remain will be stronger and will have a more dominant hand when dealing with landlords (landlords have a week hand at the moment).

    I am using this coronavirus as an opportunity to pick up MOZ on the cheap.


 
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