I suspect that many traders didn't have time to properly read and digest the update. The media was presenting the downgrade as "Corona virus impacts", which surprised me. I suspect that some buyers thought this was a three month blip. We'll find out tomorrow what the market really thinks I suspect.
Who knows - there has been takeover talk, and the founder has a blocking stake. The brand is a good one.
It sounds like the factory upgrade has turned to chaos. I think they will have production problems leading to an inability to run their end of year clearance, as that will leave them short of stock. As they will be running off inventories a lot more in the short term, they have a propitious opportunity to relabel. $7m cost to relable??? I think that is code for big dollars being spent on the labelling machines as they don't work properly and reliably. Putting different stickers on bottles costs about the same if the stickers actually go on properly, and the batch number and use by date is reliable. I just had a look at a bottle of Blackmores multivitamins we have here, that I bought a month ago, and the batch number and date were either not very well printed, or are rubbing off! I don't know the precise rules, but I doubt that the TGA and overseas regulators will not accept that for very long. Mystery solved?
