This years Singles Day will be make or break for ABT IMO. Already SD is in for a record so there's no excuse that Chinese shoppers aren't willing to buy this year.
ABT have engaged several chinese platforms to sell their goods, experts in promotion & logistics so if they can't get any traction this year then they should just face the fact that their products are not unique enough to win over customers & go back to concentrating on seeds.
The announcement of the move to sell health care products into US & Europe just adds fuel to the premise that their so called premium product is not taking hold in China which was supposed to be the target market. If anything it's just a way to substantiate the continuing employment of current management ( & payment of salaries) rather than part of a thought out strategic plan. If China is a failure what hope is there elsewhere?
Sell off the healthcare products division & retain a royalty would be the preferred option, they could still develop products for a third party.
Going into the manufacture & sale of health care products was an overly risky & ill conceived idea all along IMO. They should have stuck to developing products with minimal overheads & large tax rebates.
The only way i can see ABT turning around from this point is a Q2 sales number in excess of $0.5m, i won't hold my breath....
ABT Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
