As A2m and Vit both underperforming recently, I have reasons to believe there is something to do with the economy weakness in NZ which is substantiated by rate cut this week.
Both are NZ companies & their earnings are in NZ dollars, which means earnings in AUD is going to drop if NZ/AUD drops.
Both companies are loss-making upon floating, which will impact their cash flow if their NZ markets contracts due to drop in consumer spending (I believe when people need $$$ for Christmas spending, health supplements would be one of the last to come into mind)
Of coz, I am referring to the initial reason of SP drop. The current drop is amplified by the build-up of momentum caused by panicked retail holders' actions to cut loss or lock-in profit.
What are everyone's view?
As A2m and Vit both underperforming recently, I have reasons to...
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