BAL 0.00% $13.23 bellamy's australia limited

What Exactly is Driving the SP?, page-8

  1. 844 Posts.
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    Really don't see any comparison to DMP.

    Also, the stock has only been above $3.00 for a matter of days - don't see how anyone can say it won't see below $3.00 again!

    The problem with share advisory services pushing small caps is the self-fulfilling prophecy effect, which drives the prices up in the short term. Very difficult when they say 'sell' though!

    Only need to see the number of buyers versus sellers. Not only does the recommendation push up the price, but the sudden increase in buyers sends a price signal to the market which also pushes up the price. Smart buyers don't all pile in and create a huge differential between the number of buyers and sellers.

    In terms of the fundamentals, the other concern I have for BAL at these prices is the need to source organic product to keep growing supply. Either the supply cannot be met to match the growth expectations, or the price of organic product rises as demand increases, which cuts margin. And of course, other players can enter the market.
 
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