Mar

31

A tailwindMy work indicates that most of the drop in commodity inputs, including PET and other plastics, has run its course on improving company margins. Now revenue gains have to increase greater than cost inputs, and I am finding little discussion on this. I would appreciate thoughts from readers of the site.

Vince Fulco comments:

A few of my fundamentally driven long-short buddies concur. As I recall during the 1989-1993 and 2001-2003 periods, the pauses in the move to Dow 36K came from the periodic realization that while margin recovery was the easy/quick part (slash and burn everything in sight), it was the top line growth that remained halting & lumpy and required the real heavy lifting. 


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