You might say well, we have to tighten our belts, right now we cannot buy a car, so
we postpone the buying of a car.
If everyone does that, people don't buy cars in that period, so
that period the production of cars goes down.
And in the boom everyone is making more money and
then people start buying more cars.
But there are other companies for example, companies that make basic needs of food,
like bread, in which there is no cyclicality whatsoever.
Because people consume, in general, even if we are in a recession.
So for this company it is very important to understand whether it's
cyclical or not.
We said that one of the examples of cyclical companies is construction.
And PolyPanel sells panels for construction.
So is it cyclical or not?
You would say yes.
But let's think for a second, who are the clients?
Are we selling for new construction or we are selling it for repairs.
Well it turns out they say that many of the sales that we have are for repairs.
So it could be that when the cycle is down, people cannot buy new houses, or
what they do is repair the old houses, or the old manufacturing companies.
So we could say that it's not completely cyclical, precisely,
because it makes this new construction and repair business.