Clearly out of favor, page-106

Shorters are banking on these things:

1. Slowing birthrates;

2. Increased competition;

3. No SAMR granted to BAL; and

4. Increased Chinese Regulatory hurdles.

However I believe that:

1. BAL growth is following Organic growth trends worldwide for healthy eating and replacing mass produced food;

2. Sufficient brand distinguisgment from other organic brands and local brands;

3. SAMR will be granted + they own a CFDA facility unlike their competitors;

4. I don't buy the Chinese regulatory boogie man. This is the 4th time analysts have brought out this issue over the last couple of years and Aussie companies are still competing.