Media Updates, page-13157

Two things that the market are not factoring in for this stock with the concerns over the china economy is ;
1. A2m is a premium product and as this board has already evidenced people in the premium buying market are still buying.
2. Further, savings of middle and upper incomes is over two times that of Australia. They have money but are not spending. Buying premium drinks for their babies is a priority not discretionary.

The biggest issue long term is less births which is where diversification of products would be useful. A2m has already seen a class action it is going to be very cautious re forecasts . Hopefully the kind of results we got this August can be duplicated for the next six month report. What China has to avoid is throw money at property and infrastructure even if its a quick fix ,it creates serious debt /efficiency problems. The measures it is taking now bit by bit will better target growth for the years ahead. as it aims to among other things make consumer spending a much bigger contributor of GDP.