Bellamy's was in the same position. It had two major law firms handling class actions, analysts reports from hell re forecasts and position, angry shareholders regarding non disclosures of a very serious kind, reflecting in its class actions having the heavyweight names (unlike here yet). Basically it was in hell .
So the once darling of the market, then it did what QIN is doing now, twice delaying the suspension and coming out with a report which reduced the forecast earnings explained the details of the non-disclosures and impact and the intended future direction..
Then there was a big inner rebellion by the major shareholder. The CEO resigns followed by an improved Board membership more resignations and great "more expert at connecting with the end market" and "used to managing large global company " type people in the Board. That was my view, just to cover myself legally here, but the facts and events just reflect public news.
Bellamy's is not out of the woods. It has high debt surplus unsold milk. But its share price is more confident now and has settled at almost double its lows. '
In my view Bellamy'st faces increasing competition where milk is being produced at a much lower cost to it. Unlike QIN. Bellamy's success and now hope, was establishing its quality Brand name . QIN had done that well.
I invested heavily. Many of us bought into the dream.Its a beautiful worthy product and the strategic vision made sense.
Lets hope this is a stuff up that will create some sobering solid changes with the company.
QIN Price at posting:
29.5¢ Sentiment: None Disclosure: Held
