Stuart Davison: HighGround Dairy global dairy consultant on Synlait Milk shares increasing by 16 percent

Synlait Milk's shares surged by 16 percent after renewing their license to produce infant formula for the world's most populous nation. Investors regained confidence in the brand after they successfully secured the right to produce A2 Milk's infant formula for the Chinese market. HighGround Dairy global dairy consultant Stuart Davison says this unexpected jump was a result of the market not pricing the registration in. "A 16 percent gain in one day tells you that there was a fair bit of uncertainty behind that, so I think the investors weren't as confident. But also on the back of that, you've got to look at the debt that's plaguing Synlait at the moment."  LISTEN ABOVE  See omnystudio.com/listener for privacy information.