- The impact of COVID on the supply chain was noticeable in the FY '21 results, specially Q4.
- Inflation will challenge the gross margin in 2022.
- It is unlikely that GLGI could pass inflation to its customers due to the lack of bargaining power.
- In fact, I see customers paying less for pallets to offset their cost escalations.
- While I see GLGI stock worth $2.80, I am recommending to wait as I see the stock going below $1.00 in the short term.
For further details see:
Greystone Logistics: Inflation And Lack Of Bargaining Power Could Impact The Medium-Term Prospects