YOW 0.00% 2.5¢ yowie group ltd

Why is the share price dropping??, page-4

  1. 262 Posts.
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    The company has underperformed with earnings guidance being missed on successive occasions which reduces confidence in management and ultimately the product and company.
    Anecdotally it all sounds like things are tracking well. They supply Walmart!! and supposedly are one of the best in their category in the US, although this hasn't translated to the sales figures that shareholders were hoping for.
    The best case scenario really from my point of view is that they build up their market presence, continue to grow sales and profitablity, and then Private Equity or a company like Mondelez buy them at a premium. I bought at around 80c and would expect they have hit a floor around 40c, although i don't expect a rapid climb. If we hit 50c in the next few months it would be reasonable progress.
 
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