That analyst must be smoking something, but they have always...

That analyst must be smoking something, but they have always been bullish and anyone that followed them would have lost money. Maybe a prop up to offload some?

BWX is not growing the existing brands if you look at the numbers rather than read the blurbs. In fact a couple of the brands seem to be in decline in terms of revenue and they were expensive to buy. Growth via the acquisition has been expensive and shares have been diluted. BWX is better value at these prices, but still the multiple is that for a growth stock and it is not a growth stock. Who knows what goes through the minds of some people in Private Equity (Virgin Australia anyone?) but it doesn't look a very good takeover proposition with these figures.

Question though. If BWX is gifting millions of dollars of shares to Chemist Warehouse, and CW has access obviously to sales numbers, then that gives them access to sales information that the average punter does not have. Are those shares in escrow? It just seems an odd arrangement.