robo, terms are a pretty standard 30 days and in the annual report they advised average payment lag was 35days. As you say there are a number of influences to be considered when trying to project revenue for this quarter vs last quarter.
positives:- 1.This quarter would be stronger than last as last quarter was the quieter Nthn Hemisphere holidays time. 2.Average exchange rate boost to revenue a bit under 30%. 3.On average basic sales are increasing by roughly 20% Q on Q.
negatives. 1. lower distributor sales are expected in Japan in November and December, pending approval of in tube in Japan, sales of Gold will slacken there. 2. World economic outlook---absolutely no effect felt so far on sales which is encouraging. Going forward there could be some effect although considering the mounting concern worldwide regarding TB this could be minimal.
All in all very positive messages came from the AGM, sales for this current quarter should be far and away the best to date, I wonder how close they will get to the magic $10 million mark for the quarter?
You would imagine that in the next month or two CST will have to come out with some profit guidance for this H/Y, seems to be a bit of a grey area in the ASX rules. If this current half sees $4 to $5 million net profit compared to $2.2million net profit for the whole of last year surely that would be a material event necessitating advance announcement?
jim, the AUD really fell out of bed about the 10th October and as robo says that will mean close to a 30% boost for US revenue when it is translated into AUD. Even more for Yen revenue, about 35% by my rough calculation. Euro would be about 15%. So overall it would average a bit under 30%.
regards, EB
CST Price at posting:
$2.19 Sentiment: LT Buy Disclosure: Held
