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  "documentTitle": "WD-40 Company (WDFC)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-04-02 00:00:00",
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  "notes": "Includes a chart showing rising Days Inventory Outstanding and a transcript excerpt highlighting the 90-120 day lag in cost benefits.",
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      "text": "Some bulls might argue that the unprecedented drop in crude oil is a massive windfall for WD-40. The Company says that 33% of its cost of to produce a can is petroleum-based specialty chemicals. Of course, the problem is that low oil prices are coinciding with severely depressed economic activity which we expect to materially depress sales.",
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      "text": "Days Inventory Outstanding: 80",
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      "text": "Some bulls might argue that the unprecedented drop in crude oil is a massive windfall for WD-40. The Company says that 33% of its cost of to produce a can is petroleum-based specialty chemicals. Of course, the problem is that low oil prices are coinciding with severely depressed economic activity which we expect to materially depress sales. In addition, WD-40’s competitors (already pricing products below WD-40) get the same benefit and can become even more price aggressive to take share. Moreover, the impact of oil prices flowing through is upwards of 120 days, and that is after the Company must work through its record bloated finished goods inventory. Current inventory days outstanding are near 80.",
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      "text": "“Okay. And then going back to the price of oil coming down. How long will it take -- are you in FIFO, first of all? How long will it take for you to benefit from those costs? I know that the intermediary has to come down as well, but it sounds as though they may be. And so let's say that you benefit from it in a 90 to 120 days, as Jay mentioned. Will you, at that point, have to give a price?” — Analyst G. Research, Q1 2019. “Pricing wise, we have a very -- our current pricing structure is in place and we see no reason to change that current pricing structure. You're right about that, it is about 90 to 120 days. We are on FIFO with -- in that time between when it's -- when the new lower material costs come into our manufacturing facility, and by the time it gets through to us, inventory, and on the end, it's 90, 120 days, maybe a little bit more. So -- which is why we haven't really made any changes to guidance going out.” — WD-40 CFO Rembolt. “If we do see any impact of a sustained lower oil price, we wouldn't expect that to be seen until the third quarter. Right now, our cost of goods are really reflecting the oil price in what months, Jay, July August?” — WD-40 CEO. “July, August.” — WD-40 CFO.",
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      "text": "Source: Bloomberg",
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      "text": "Jan 9, 2020: Q1 2019 Comments On Oil",
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