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Monday, April 23, 2018

Questions on baby formula sales in Australia

Hi readers

Markets are continuing to flog around traders up and down basically, churning the wheels as they say.
Where the action has been is in certain stock sectors where you can see the speculative money just float around.
We mentioned a couple of weeks ago, a simple issue that was regarding sales of baby infant formula.
Which I guess fell on deaf ears at the time but it's now starting to show up with managers asking the questions that should have been asked a good fortnight ago.
So where is the problem you might ask!
I know that bubs has the sales for a fact, the local (Australian)new born baby population hasn't  grown above the average (2012 levels ) so how can WHA,BAL and A2M all be recording double digit growth locally.
When you break down the sales it appears that all four have local growth of 50-100% per year.
I can't seem to find the evidence to back those sales up.
That's why I have been selling shorting both A2M and BAL for trades.
It's my view that the  numbers don't stack up.
I could be completely wrong but going by what I'm seeing in the sales number breakdown I doubt it.
Is a 12-15%correct a normal thing, you can be the judge of that ..

We are still in Melbourne at the present time and haven't been able to get to your emails yet as I was hoping to last week.
The wife has stamped her authority so please be patient, also looking at some good opportunities which will list later in the year .
 One is a medical research firm and the other is a manufacturer.

Disclosure
Looking to close out of short positions BAL.ax. today Tuesday 24th

As always use the above as an indicator to your own work .
In no way is the above financial advice and is purely based on financial astrology
Seek professional advice on the above as I am not a professional advisor.

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