I agree that some shareholders are obviously taking profits. I disagree that it will drop to as low as 70c anytime soon.
My rationale - On Monday 16 Nov, the sp closed at 84c, The next day, the company increased its forecast ebitda earnings by 83% to NZ$22m. The sp closed the day at 88c. Since then we have learnt that Synlait plans to increase its production four fold from FY15 levels.
From Tuesday the 17 Nov to today BAL sp has increased 28% from $9.89 to $12.69. Over the same period, A2M sp has increased only 12.5% from 88c to 99c. BAL and A2M are increasingly being compared by the market.
That is my rationale. What is yours?
A2M Price at posting:
$1.00 Sentiment: Buy Disclosure: Held
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