You raise a good point. To my mind, Singles Day is just that, a short 24 hours of hyped sales. If the discounting was permanent or over a long time period via one or two sales channels then I would worry as you would be competing against yourself from the other sales channels.
Some benefits could involve raised brand awareness as Neurio rises in the sales volume list, people who use Neurio may bulk up with the cheaper stock, and new users may give Neurio a crack and will stay on the product if they like it. The same goes for other product lines, not just Neurio.
I am impressed with JAT’s pre-JV research and partnership arrangements. They seem to do a lot of background work, enter into a viable arrangement and ramp up product and distribution fast. Not all initiatives will win, GK for example, but I suspect that will roar back into life with minimal warning via ANMA.
As for buyers of shares, I am starting to think that JATs diversification will increase the buyer pool over time. For example, we are mainly riding the China powdered milk story, those who understand milk are in for the ride. Once meat substitute takes off, then those followers will jump in; as will the cosmetics crowd and those who follow supplement and pharmaceutical manufacturing industry.
History will tell us what pans out.
JAT Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
(20min delay)