Chart Update, page-17733

sorry you have to wipe out the entire ANZ IF business and half of the fresh milk business to get down to $6 . My understanding is that the logic should flow like below

Revenue margin grow lowers PE —-> Big money enters the market —> Big Jump in SP & Volume —> Support level formed and shown in the chart

Now if you go back and check the support level at $6 what was the revenue and PE back then?

And now check A2’s current forecast Rev and NPAT with whatever worst case scenario you may assume apply the $6 , how does the PE look like? <20 , do you think that’s possible? With all eyes on A2m and Blackmore is trading at PE 40 BXW 30

Just because big money entered market at $ 6 s back then doesn’t mean they will only start to support at $6 . They will start the support whenever the Ideal PE in their mind is reached and you apply that to arrive at a price that’s your bottom support.

So please guys don’t come up with this sort of support levels just because the chart says so. At least have a read the half year and combine with some calcs realism to provide some estimate . You just cannot compare a 10kg watermelon to an apple .