Kori, he is making good on an Incentive Plan, not exactly...

Kori, he is making good on an Incentive Plan, not exactly standing in the market independently buying stock.

As for faith in future earnings, the decline in GP margin to 33% in 2H13 from 38% pcp is very troubling and, in my view, highlights the lack of progress this company has made in diversifying its customer contracts and enhancing its product set. All initiatives Dr Brown has spoken about and not delivered upon in the last 2 years.

Aside from the Fonterra issue, CLV have a lot of work to do to return to the glory days of 40% gross margins and consistent YoY revenue growth. 1H14 is going to be ugly and 2H14 will not be much better ... unfortunately it looks like dividends will be under serious threat in the next 12-18mths.