Chart Update, page-4903

You might think A2 is over-valued but if it did fall into the 12's then I'd consider it to be under-valued. If you go back and look at every half year announcement in the past 3 years A2 have consistently been conservative in their forecasts, i.e. they always beat guidance.

I think we saw A2 come off last year due to the magnitude of the move up - around 40-50% in the days following the HY update, there was also some caution given the news around China e-commerce, grumbles of how the trade war might impact A2, Sm1 provided more cautious guidance than expected, new competition was entering the market in the form of giants Nestle, we got a new CEO who many questioned and it's always a big change when such a legendary figure leaves in GB, and then to top it all off Jane sold her shares unexpectedly which was a faux pas on what has otherwise been a solid BODs.

As the year unfolds obviously a lot depends on how the general market holds, but I suspect investors are both more convinced in their growth prospects and mgmt's ability to execute on their strategy. We've got through some uncertainty as mentioned above, so I'm hoping around 13-1330 is proper support.