The point here is I believe that all these brand companies...

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Kikker1959

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14/01/17

11:18

Post #: 21893627
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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.

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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
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The point here is I believe that all these brand companies...

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