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08:26
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Originally posted by thejuicer
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A2M is already down 20% from its SP pre the balance announcement of 2nd December. A 40% drop would put the A2m SP at 1.48. A 40% drop from A2M current SP of 1.96 ain't gonna happen imo. Implying this would happen just because a company in the same sector also dropped 40% because of its own company specific management issues and poor sales performance is illogical and unlikely imo. While Bellamys has been experiencing overstocking, slowing growth (or halting, maybe even reversing growth) and uncertainty due to poor communication to the market A2 has been short of stock, growing sales exponentially, hitting targets and keeping the market abreast of its performance in a timely manner. Or put another way crap performance vs great performance. Bellamy's entire brand may well be in trouble in the market where its biggest growth was coming. Meanwhile A2's brand in the same market appears to be strengthening it's premium positioning.
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The fall due to BAL may be short lived but I have just laid in some low buys and found there are a lot of others expecting the fall........ Which means if it goes up there may be a problem for the shorters and someone may make a bundle.....
(20min delay)