Media Updates, page-3175

The primary reason for the stock to fall is the near term NPAT will be below analyst consensus because of the higher marketing spend. This didnt fall on rumours alone. I think the point being made by people recommending a hold or buy is that the fall has been over done and the stock will return to fair value in the short to mid term. The stock market always overreacts. When there is good news the SP is taken far above what can be justified (Feb 18) and when there is bad news the SP is taken far below fair value (Oct last year, Now). I think trading off rumours is a recipe for failure. According to management all is going well. They said the same thing last year in October and the SP went from $9 to the recent all time highs. Back then there were plenty of people saying there is something wrong behind the scenes.