Synlait Milk shares punished for over-optimistic forecasts, Chinese regulatory speed bumps

Thu, 27 Mar 2014

By Jonathan Underhill March 27 (BusinessDesk) – Investors punished Synlait Milk shares after the dairy processor was forced to wind back the bullish profit forecast it gave in January because of disruptions from increased Chinese regulations on infant formula and unfavourable foreign exchange movements. The stock dropped 7.3 percent to a three-week low of $3.70, trimming their gains from last year’s initial public offering to 68 percent. The full-year profit forecast was cut to a range of $25 million to $30 million, down from the $30 million...

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