ATM - A2 Milk Corporation Limited

[couta1]

Had about 2m shorted on A2M.ASX yesterday [ highest number in almost a month ] - a retrace back into the 320's is likely

A little bit of air coming out of the bubble, no surprises there, a very scary stock to own if you bought at the top.

[JeremyALD]

A little bit of air coming out of the bubble, no surprises there, a very scary stock to own if you bought at the top.

I'll be staying away unless it gets back to $3. It had to pull back at some point. The run has been crazy and the longest upward since I've been following ATM. Usually there's plenty of bumps along the way.

[hardt]

A hell of a lot of shorts were covered Wed/Thurs... feel bad for the retail investors with FOMO wanting to join the party.

This guidance upgrade was already factored into the SP for a lot of investors.

There is value here in the low 300s... Geoff Babidge runs a pretty tight ship that consistently outperforms [ or under forecasts ] I can never tell.

[Beagle]

A little bit of air coming out of the bubble, no surprises there, a very scary stock to own if you bought at the top.

Buying AIR and these "frothy" things lately too. Can I have two side orders of free seat belts to go with that
Long term the current price for both is good value in my opinion. Free bumps and turbulence along the way guaranteed !

[couta1]

Buying AIR and these "frothy" things lately too. Can I have two side orders of free seat belts to go with that
Long term the current price for both is good value in my opinion. Free bumps and turbulence along the way guaranteed !

Mate I'm only buying retirement stocks and power companies currently(That's includes Ryman, which I know you think is overvalued but we will agree to disagree on that one) Most of the other stocks are too frothy and are in for a good winter pruning IMO.

[Beagle]

Yeap I hear ya about the power companies mate. Good discussion yesterday about people always needing power no matter else happens.

[hardt]

Mate I'm only buying retirement stocks and power companies currently(That's includes Ryman, which I know you think is overvalued but we will agree to disagree on that one) Most of the other stocks are too frothy and are in for a good winter pruning IMO.

Nothing wrong with the boring ones, but surely you want one or two growth stocks in your portfolio right?


Taking a look at the A2MC and why some people aren't looking to invest... it's a volatile stock, I'll give you that and with a heavy reliance on the Chinese market for growth I wouldn't blame you for shunning it for a lower risk/reward equity.

The market sees China as a bit of black sheep that, on occasion, swallows diamonds.
China can, at any point, do a 180° turn and end a foreign businesses prospects, not to mention the seemingly endless corrupt government officials colluding with domestic companies.

This uncertainty brings immense opportunity to investors who seek a discount to the terminal and enterprise value of a company.

As a whole, management has proven to shareholders that their capital is being put to good use, glancing at the reports, we see the basic fundamental indicators of this company already shining bright and indications of the metrics improving over time.

ATM has proven to be quite rewarding in my short time holding [ 6 months ] and with no slowdown in sight, I see value in holding long for the next 5-10 years.

I believe they have under forecast revenue at 525M, waiting till August report to feel vindicated.
Pharmacy sales data below - reflect about 20% of formula sales.

upload_2017-4-19_18-41-38.png

[dobby41]

Yeap I hear ya about the power companies mate. Good discussion yesterday about people always needing power no matter else happens.

Even if they need lots less with LED lights and things.
Though maybe greater air con use will counter that.
Or a big sweater and some rugs?

[sb9]

http://a2nutrition.cn/a2_pc/index.html

Bit of an update on the recent media report from A2 China website...and translation of which is as follows:

*****
A solemn statement about media untrue or misleading reports

A2 Milk Company noticed some recent social or mass media for A2 to carry out untrue or misleading reports and dissemination, to this a2 Milk company, to the beginning of milk Trading (Shanghai) Co., Ltd. solemnly declare:

1. The so-called "1 batches of nominal A2 milk products" mentioned in the media report, the Division I and the AQSIQ confirmed that the batch of products are labelled "A2 Full Milk powder", not in part of the report mentioned or implied A2 infant formula. The batch product is imported from Chifeng Australian import and Export Trade Co., Ltd. I
n response to the batch of powdered milk, the aforementioned company "failed to provide official health certificate in Exporting Countries", and the company is not A2 Chinese official business Cooperation unit.
2. According to the AQSIQ issued information, the batch of powdered milk was returned because of "failure to provide official health certificate in exporting Countries".
At the same time, except for the importer's failure to provide the corresponding certificate as requested, there is no information about the powdered milk itself.
3. Recent media mention that A2 infant milk powder for "OEM", the actual situation for A2 Milk company is the infant milk powder production plant of the main investors.
A2 Milk Company has been the product quality and safety in the first place. In order to safeguard the legitimate rights and interests of consumers and a2 milk companies, A2 once again solemnly declare, and retain the right to further take legal action to trace the false or misleading media coverage.

First Milk Trading (Shanghai) Co., Ltd.
April 28, 2017

[Leftfield]

News of ATM's selection of a leading advertising agency to promote its USA marketing thrust.
Read it here