Australia's largest stock trading and investment forum Australia's #1 stock forum

BAL

Click for more information

0.00%

$13.23 bellamy's australia limited

Main Reason BAL Is Cactus!, page-6

First 6 Last

Share
Profile

Follow
Kikker1959

10,698 Posts.

4400

14/01/17

11:18

Post #: 21893627
Share

Originally posted by asb83 ↑

A2M itself doesn't have a CNCA licence either. It relies on its manufacturer for this. Most IF companies don't own their manufacturing, so this is a mute argument.

Also, BAL would be in the top 3 brands for Bega and Fonterra, so it's not in their interests to play tough otherwise they are shooting themselves in the foot. As we've seen with Blackmores IF, entering this space isn't easy, so it's unlikely Bega or Fonterra will begin manufacturing their own brands. Bega's 50% partnership with Blackmores was a write-off, so they have already been bitten going down that path.

BAL are in medium-term trouble, however, they'll still be around in 5 years. They still make a truckload of revenue and once the current issues are sorted over the next 12-24 months, they'll still be very profitable. I'm happy to buy shares in my super account if things get ridiculous and it goes sub $3. At $3 it has takeover target written all over it.

Expand

The point here is I believe that all these brand companies selling into China are at risk. Also added risk is the hawkish US attitude towards China can shut down markets for us very quickly. all IMO

BAL Price at posting: $4.01 Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

OCC

Orthocell kicks off collagen-based dental bone repair product sales in Canada; eyeing next stop Brazil

QML

Metallurgical testing shows saleable copper and pyrite from QMines' Develin Creek project

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

As Nvidia cools, we're looking to Aussie AI

CBA breaks trading record on strong day for Aussie financials

BIT

HotCopper users blunt as Biotron sinks -35%; long-awaited COVID drug results same as placebo

LAM

Laramide sniffs prime Kazakh uranium, with agreement over 6000 square km land position

SBW

Shekel Brainweigh investor presentation webinar – the future of retail automation

PRU

Perseus Mining boosts stake in Predictive Discovery to 19.9% as latter's flagship project stalls

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

There are more pages in this discussion • 436 more messages in this thread...

First 6 Last

Add BAL (ASX) to my watchlist