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Specific to Hupsteel, my suspicion is they don't. The hint comes from the Annual Report. The only hedge they do is on currency.
A stock well bought is half sold - Ben Graham
Price is the most important factor to use in relation to value - Walter Schloss
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Welcome NTL, I learnt more from trying to answer the questions.
So how will Hupsteel react to replacement cost issues due to rising steel prices?
2010 AR, hupsteel CEO said the following "Hupsteel will also continue to minimize inventory holding, purchasing only to fulfill secured orders and stock up popular common sized items. In this way, it will be protected against fluctuations in steel prices and avoid over utilizing its cash in inventory purchases. This will allow it to take advantage of attractive offers that might arise from time to time and avoid having to keep stock over a long period of time in view of the uncertainty in market demand."
A stock well bought is half sold - Ben Graham
Price is the most important factor to use in relation to value - Walter Schloss
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Safely said,
Low steel price + Low shipping rates = good for end users
Rising steel price + Rising shipping rates = bad for end users. Which is now.
Will these stockist help their customers to cushion some of the rising costs? Or can simply pass through?
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(18-09-2013, 03:41 PM)brattzz Wrote: More share buy backs..
17 Sept - 200 lots @ 22.3 cts
11 Sept - 200 lots @ 21.5cts
18 Jul - 300 lots @ 22.5cts (they are paying more after XD!!)
17 Jul - 98 lots @ 22.5 cts (they are paying more after XD!!)
11 Jul - 239 lots @ 22.3 cts
5 Jul - 250 lots @ 22.5 cts
4 Jul - 280 lots @ 22.49 cts
9 Oct - 250 lots @ 21.86cts
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Hupsteel has the potential to become a super gem, but I am worried about the management as it seems to show that they are unable to make use of their assets well.
I fear that even with the land developments done, they may end up being complacent and the steel business may deteriorate even further.
Vested but worried.
Patience is a virtue.
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I don't fully understand hupsteel's business model. Why do their clients not source directly from producers? They might be vulnerable to the major steel producers consolidating further downwards into distribution and storage.