Both companies had very good earnings. A2 has spent a...

Both companies had very good earnings.

A2 has spent a considerable amount of money trying to penetrate the UK and US markets so NPAT for the first half 2016 was slightly less than BAL.

I think momentum is very much in full swing for both companies tackling China.

Bellamy's have forecast group revenue to be in the range of 240-260 million. Their 1st half Revenue was 105 million. Looking at this they are still expecting a much stronger second half which they mentioned in an earlier announcement (This could of possibly been a reason as to the fall because they did bounce from $10 to 13.50?). The market probably wanted a much stronger forecast for the second half..but look at A2. They revised their revenue upwards for the full year again and the last revision was only since December. The revision in forecast was again generated due to 2 months additional sales data but they still got sold down back to pre announcement prices. Go figure. The market is a confusing beast at times. Overall as long as revenue, sales and npat increase with rapid growth the SP will follow.

Maybe Mr market thinks growth will halt but there is no indication of this. I don't know much about BAL but in terms of A2..if growth looked like halting the company would not be increasing milk supply for FY17