Not true , the trading update released 13/6/17 clearly states..
Recent trading performance has been in line with expectations. 2H17 net sales are forecast to be above the mid-point of guidance ($105-120 million). Indirect costs in 2H17 are forecast to be materially lower than 1H17 excluding one off redundancy and restructuring costs. Reported EBIT guidance for 2H17 has reduced from a profit of $9.0-13.0 million to a loss of $9.5-14.0 million, due to the addition of one-off costs associated with the Acquisition and Fonterra agreement. Normalised 2H17 EBIT guidance has increased from $11.0-15.0 million to $16.5-20.5 million, due to the removal of a $5.5 million shortfall payment to Fonterra, which is no longer payable under the revised Fonterra agreement. The balance sheet is improving. Cash-flow has been positive since March 2017 and the net-cash position is expected to be close to neutral at 30 June 17. Inventory at 30 June 2017 is expected to be similar to 31 December 2016. However, it is important to note that inventory has been declining since reaching a peak in March 2017.
There is certainly short covering and as other posters have said , the de-risking of many potential problems has changed sentiment markedly. This run up is not about the now but about the next 18 months imo.
BAL Price at posting:
$7.15 Sentiment: Hold Disclosure: Held
