Recent positive developments in the USA over increased health provider payments for FPH’s sleep apnea products in-home mean this area is a driving force for profit and as new products are developed for the at home market profit looks set to rise. The prime market will have a slightly stricter listing criteria than the current main board but analysts expect a large part of almost 2,200 firms currently listed there will move to the prime market. SI – What is your opinion on bonuses paid with unique boutique options and other incentive pay and how do you feel about executives of other NZX listed companies receiving incentives even though pre-determined targets have not been met? Yesterday the stock closed at $8.15, an all time high. Agriculture has been bad for a long time now. 38.50 on Monday and are now a short. The stock is now back at levels that it was trading in early 2007 (see five year chart below) and few NZX stocks have managed to do that pre the October 2008 stockmarket crash. Once you have made your investment, you will wish to visit the company website daily, read all the news about them, and stay to date with what is going on.
SI – What are your biggest challenges as the company expands and do you prefer organic expansion rather than the purchase of companies to pursue revenue and profit growth? The company has a had a good history of expansion and profitability since it was founded with one truck by Bruce Plested in 1978 and as Don Braid has been on board since 1994 the company has grown considerably in revenue and profitability, has been listed publicly since 1996 and has found a foothold in Asia and the United States. The sales decline also marked an improvement over last quarter, when revenue dropped 61% over last year. The Chinese yuan surged nearly 1% against the dollar, while the greenback plumbed its lowest levels against a basket of peer currencies since April 2018. Bitcoin took a 10% dive, falling below $30,000 after a blistering 800% rally since mid-March last year. While at times we have exceeded this ratio we do wish to continue to re-invest in our business. Why have you been able to avoid this to date and do you see the issue of capital raising being an issue for Mainfreight at a later stage should the economic downturn last longer?