BAL price target $12, page-9

Not ramping about BAL stock here. Only saying what I am feeling.

There is nothing called bad publicity. Bellamys brand is only going to get more popular after all this free publicity. Imagine some company's have to spend millions to get their brand into the news.

Not a single article in the media has stated that there was something wrong with Bellamys product because there is nothing wrong with BAL products. News articles continue to mention that BAL makes great organic products and still continue to sell them in the super markets and pharmacies in Australia and online overseas.

Demand for BAL products dropped due to change in the dynamics. It is only a matter of time and the demand will recover over period of time as more and more parents realise what Bellamys brand stands for. BAL sales have been on the increase in Australian market even before their products became popular in China. The growth rate might not be as high as some analysts expected but growth will still be there.

The share price has been recently re-rated and there might be some more downside in the short term due to the "World is coming to an end" scenario but in the long term BAL has still got all the potential to perform better. BAL products are profitable and the company has zero net debt. It is like having regular income and no mortgage payments to make.

Keep the faith and think about those BAL employees working hard overtime and trying their best during the last week of December to move the inventory as the company gears up to report the first half year results in Feb.

I did not buy BAL shares against a margin loan. I bought them with the spare cash I had. I understand here is some loss of liquidity but it happens when you open a term deposit these days or buy a property. I would prefer loss of liquidity any day in comparison to loss of capital. There was loss of liquidity on listed property trusts during the GFC and it turned out to be a good thing in the end. Look at the listed property trusts now and they have performed way better than the banks or mining sector.

Nothing is permanent. It is only temporary. BAL will start trading on ASX and it is only a matter of time.

We all need to stay calm and stay positive and don't make rash assumptions while waiting for the results of negotiations with suppliers and December sales.