Chart Update, page-1232

It's simply undergoing a re-rate. People can argue that it's being manipulated and whatnot to make themselves feel better, but the reality is the market is re-adjusting its valuation according to a number of factors, including, but not limited to, lower FY18 revenue than consensus, flagged lower FY19 margins than previously expected, increased marketing spend, likely lower FY19 revenue than consensus, trade dispute/sentiment, execution risk for the next phase of growth, new CEO, etc. There's nothing sinister happening - it's just a de-risking. This is not downramping. Rather, it's being realistic.

I have a long position that I'm holding for tax reasons. People saying they are "topping up" because it's "cheap" at these levels could be in for a shock if it gets cheaper. Look at BAL. It has taken a 50% haircut from its high earlier in the year and is *only* trading on a PE below 20 based on FY19 consensus. The market is certainly doubting that consensus. They obviously have some issues unique to them that has resulted in their re-rate.