Actually, if you go back and read their 2017 results preso you...

Actually, if you go back and read their 2017 results preso you will see that single item performance have too large a leverage on profitability. While I still believe this is a good company, their 2017 growth didn't match the hype produced by the 2016 growth. API hid this by talking about underlying numbers. Codeine in NZ and Hep C in Oz are a case in point. These sort of issues will happen every year; its the nature of the business.

In addition, fragrances and vitamins are underperforming - and guess what? These are two of the easiest chemist product lines to buy on line.

While there is little doubt that some of the one-off impairments are just that, others are less believable. Reversing a DD cost may seem OK, but its a pretty much constant in doing this type of business - they want to keep expanding, so its hardy a one off?

The SP has been hammered by people who can see through their results. On my reckoning, the business is worth about $1.40/sh and will patiently wait for it to get there before I buy back in. If it doesn't, well, I'll look for a wider moat elsewhere.

I've been wrong before - but I don't cry over missed opportunities, only losses!