BKL - is 90s a value price ?, page-5

"This week BKL has fallen to the low 90s. Now the question is "Is it a good price to go in ?"

$90 looks good value when you can see the price was $220 some 19 months ago. Prior to that it rose from $37 to @220 in just 14 months! Clime have FY17 IV at $85.35 with ROE an exceptional 52%. But one can't just look at the figures. BKL is in a sector (Vitamins) which is extremely competitive. There is a constant price war and each week the supermkts feature one brand over the other. Customers have got used to buying vitamins at half-price and will grab 2 months supply when their supplement is on a super special. You can buy a yr's supply and put it in a handbag if you want to give/sell to friends overseas when returning home to Asia after hols in Oz.

Another product faces similar customer behaviour is toilet paper/ paper towel/tampons. People wait until its half-price and stock up. Margins are hammered. Demand for vitamins will continue but can the company grow profits? I'm not sure it can. Hence, BKL isn't a part of my portfolio.