Blackmores is the dead Australian canary

Profit warning!

After the downgrade, trading on 60x PE. This is Australia. In equal parts massively overvalued and overexposed to the Chinese shutdown.

If Blackmores is right, and it takes three months to resume any kind of normalcy in China (let alone longer), then Australia will be sunk into deep recession mid-year as an income shock of immense proportions thunders south.

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Comments

  1. The supplements market is one of the biggest rorts around. As my GP commented after attending a medical conference a few years back, most of these supplements are placebos at best and useless at worst. Just take your money out of your wallet and set fire to it.

    Still, there are plenty of gullible people out there so plenty of money to be made 😉

  2. John Howards Bowling Coach

    Stand by for the CCP to buy up Blackmore’s just as they do whenever they create an opportunity to smash a share price on a brand which is reliant on the Mainland Chinese consumer. Have a look at Bellamy for their recent playbook.

  3. innocent bystander

    isn’t Blackmore’s factory in China?

    did a superficial search but only found this:

    News Corp has also uncovered that almost all of the vitamin C and glucosamine used comes from China.
    Swisse and Blackmores both source these ingredients from China.
    Vitaco sources amino acids, sweeteners, acids and herbs from China and Sanofi, which makes Natureʼs Own, Ostelin and Cenovis vitamins in its Brisbane plant, also sources some ingredients from China.
    Blackmores says the global food and nutritional supplements industries are heavily reliant on China as the source of almost all of the worldʼs vitamin C and that Australia does not grow or make most of the ingredients for other supplements.

    http://www.cmaustralia.org.au/resources/Miho/Vitamin%20supplements%20industry%20reveals%20Chinese%20connection,%20%20Herald%20Sun.pdf

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