Shorters back in town - YIPEE!, page-9

The result was not as expected. It was much better. Broker consensus was for $36m EBIT for the full year and they have delivered $19m in the first half. And the first half only included one months benefit of the November price increase. The second half will include an extra five months. Current broker consensus expectations are for NPAT of around $25m but as I have explained in another post $40m is looking much more likely, which will bring the PE down to 22x 2H16 annualised earnings.

This is a dangerous company to short, in my view, given upgrade risk. Yes, on any given day or week, the stock might be down, but in the long run stock prices follow earnings, and BAL is delivering explosive earnings growth.

Fidelity has been buying recently and they are the world's largest fund manager. A solid endorsement for BAL.