ATM - A2 Milk Corporation Limited

[sb9]

Nice SP movements the last few days. Bollinger bands getting squeezed. More upside ahead?

Over in Hot Copper the attached pics seem to typify ATM selling all it can supply in Aus supermarkets, while other brands languish.

Attachment 9027
Attachment 9028

Good on ya lf for posting those pics, did see them on HC too.

With less than a month to go before the EOY results out on 23rd Aug, those kind of anecdotal evidences bode well.

[hardt]

I've got to eat some humble pie here with this share, it had been on my radar for a while and I got really close to buying in about a year ago when it was around $2. At this point though, I thought the whole A2 thing was a gimmick and that the valuation at that point was just pure hype and speculation. The earnings/revenue growth we have seen in the past 12 months had not occurred so I thought the share price didn't support the hype. How wrong was I?

Congratulations to all the shareholders for making such a health gain! Still lamenting getting in at this price. A PE of almost 50 is eye watering at the moment.

Good luck to all the holders!

Have a look in 6 months and tell me how lofty $4 looks!

[Leftfield]

Good on ya lf for posting those pics, did see them on HC too.

With less than a month to go before the EOY results out on 23rd Aug, those kind of anecdotal evidences bode well.

What is also telling in the pics is that ATM retailing at $27 has sold out, while other competitors on special at $20 remain unsold. Clearly consumers perceive benefits from ATM and are willing to pay a premium. Exciting times predicted ahead when ATM's doubling of production takes hold in October.

[sb9]

What is also telling in the pics is that ATM retailing at $27 has sold out, while other competitors on special at $20 remain unsold. Clearly consumers perceive benefits from ATM and are willing to pay a premium. Exciting times predicted ahead when ATM's doubling of production takes hold in October.

Exactly, trading upgrade on sales is one thing, but what the product margins and final NPAT figure for FY17 is entirely different thing.

[Beagle]

Coutts will be happily playing on Coronet ski field and oblivious to the fact that he's cleaning up. I know he recently backed up the truck and trailer unit on this one. He's getting more cunning these days, not like the days of old where he's load up on speculative mutts he now chooses quality companies. Well done mate.

[hardt]

Comparative to wet milk , infant formula has margins dreams are made of.

A2 MILK COMPANY - NZ	FY13A	FY14A	FY15A	FY16A	FY17F*
OPERATING REVENUES GENERATED - NZDm	94.5	110.8	155.1	352.8	546.0*
Cost of goods sold as a proportion of product trading revenues	64.30%	64.00%	64.80%	57.20%	52.00%
Cost of promotional marketing as a proportion of trading revenues	4.80%	8.90%	9.40%	10.30%	10.00%
Cost of logistics/shipping & freight as a proportion of trading revenues	7.90%	7.20%	6.00%	4.40%	4.00%
Cost of corporate as a percentage of trading revenues	10.70%	15.00%	15.30%	11.40%	10.00%
Net margin difference on previous Y	n/a	(7.40%)	(0.40%)	12.20%	7.30%
OPERATING EXPENSES INCURRED - NZDm	84.8	106.6	151.0	297.3	428.6

[Gunny]

I notice we are now main stream at the Newtown Countdown in Wellington with four high double depth crates of A2 centre stage in the chilled milk isle, brilliant best I have seen. Following must be growing around here. A2 availability at this store was the reason I started shopping here a long time ago.

However in passing noticed the new Beachlands Countdown in Auckland had none, do we have distribution issues up there?

Gunny

[whatsup]

$4.24 ALL TIME HIGT , there must be an major update coming, when is the next ann due, are we in for a rerating ?

[silu]

After buying a truck load at 50c I sold half of them at $1.60 early last year. Better check what I did with the money and it better be good.

[Ted2]

Yep I've been wondering what's happening with the love of my life today! No news so maybe just the HC bods exciting themselves again?
Sold 20K of my 50c pile at 2.25 because I couldn't see them going much higher and wanted to lock some profit in. And told the wife it wasn't worth putting her 50K into ATM then as there was now too much downside! Another great call.............Now I just go along for the ride and enjoy every 1c movement and think how my favourite saying is so applicable to my investing....

"Luck beats skill any day".....