Good to see the analysts recommendations beginning to flow through from the Q1 results; while high growth is not there, the level of sales is high enough to secure the dividend. As the divvy is fully franked, this makes the gross yield look very attractive and can only add to the positive momentum which is building into the full year results.
The high growth / aggressive marketing option continues to look complicated, between the parties with the royalty payment , the FDA and labelling, the establishment of further user trials and the civil court cases. It is unlikely that the market will change its view on price multiples until at least one of these issues is resolved.
In the meantime, post rate cut by the Reserve has generated further depreciation in the AUD, back to the low '70's and will add to AUD earnings on translation and add to funds available to distribute.
Given the increases in SP over recent days it does look like the story is building momentum and we will outperform through to the annual results.
GLTA Wazz
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