This will be when (a) the AU$ starts to enter a secular decline from current levels. ie the major trend turns down. (b) when the government cuts the GST tax free threshold on overseas internet purchases.
(a) is important because there will be a structural change in margins. Margins are a % of sales price, sales prices have been trending down over the last few years. A lower AU$ will see sales prices trending upwards.
(b) is important because it will reduce the current structural benefit that is given to overseas suppliers using internet to penetrate local sales. It will reduce, but not eliminate the pricing differential.
Obviously the final decision will be the share price at this point in time.
JBH Price at posting:
$11.01 Sentiment: None Disclosure: Not Held
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