If it was unexpected, nobody could predict it now.
With that being said, I think the chance to do cap raise is low due to the history of this board's judgement. Blackmores usually does small bolt-on acquisitions and grows them organically, for instance, Blooms. Also, it requires only medium working capital and has plenty of room to use new debts so these two factors further reduced the chance of cap raise.
As to the probability of any downgrade, I have no idea whether any unexpected Chinese regulations change would come in soon but Premier Li Keqiang has set a stable tune for Daigou industry. Plus Blackmores is significantly growing its China domestic business as well as Indonesia so that these efforts together with its bases in other small south east Asia and NZ can be a good buffer for any probable further deterioration of its AU Daigou business which has stablized in recent months according to management's reports, rival Swisse's reports and other signs... So these are some facts you might want to sync with me.
I didn't average down as many as Jay, only did one at $120 following a new Director's big purchase so my ave cost is still $152 which indicates my immaturity in picking time to buy in a good company.
BKL Price at posting:
$104.60 Sentiment: Hold Disclosure: Held
