Probably to lend out to shorters knowing these game players.
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What is peoples thoughts or predictions on dividends and when it will happen ... ?
It could boost their SP, but I am not counting on it. Still best to chase growth IMHO.
I would rather see some comment about progress in other Asian countries (S.Korea, Japan, Singapore etc) to diversify away from over reliance on China. The update on USA is also crucial.
‘Sam Teeger has raised Citi’s price target on a2 Milk (ASX: A2M) from $12.30 to $14.85 per share – and upgraded the rating on the stock from sell to neutral.’
That alone marked a large reversal in views for the broker. Last week though, Citi took this reversal one step further: upgrading their rating on a2 Milk to buy from neutral and slapping the IMF stock with a bullish price target of $17.45 per share.
All up, in percentage terms that’s a 41% upward revision.
A2 MILK SHARE PRICE: THE CITI TAKE
The thrust of this newly minted upgrade though is probably the most interesting part of all this; with Citi analysts contending that the Coronavirus may actually have a positive impact on A2M’s second-half FY20 margins.
Citi had previously held a sell recommendation on the stock based on the thesis that A2M could not sustain its high margins in the face of growing competitive realities.
Returning to the current view, while the broker does indeed acknowledge that public health concerns surrounding the Coronavirus have impacted foot traffic around physical storefronts, Citi suggests that this may be offset by a 'surge in online orders'
As the broker further points out as part of its buy thesis: ‘household stockpiling could result in stronger than expected sales and consumers increasingly staying at home may reduce the need for 2H20 trade and outdoor marketing activities,’ and ‘travel restrictions could help the company reduce its travel expenses.’
Quantifying the impact this would have on the company’s underlying fundamentals, Citi increased their FY20 second half sales estimates by 14% and is currently projecting that A2’s earnings margins will come in at 31% (in H1) and 32% (in FY20).
You still didn't check what the for A2 all important Daigou channel is, didn't you?
Start here:
https://www.nzte.govt.nz/export-assi...daigou-channel
You will find nothing related to "bulk" in this description. The Daigou channel describes many small (and typically inofficial) traders sending their stuff either per mail or asking travelers to take a couple of cans with them. Both of these transport options are now closed.
Looks like we have a problem, don't we?
Do we know of what % is A2 sells via Daigo? Some had tried to squeeze that out of Jane but she never reviewed it as I could recall! If I have to read between the lines... Don't think A2 has relying on Daigo as much as before... hence the large amount of expenditure were spent in marketing right?
NZ sends all IF ONLY from BONDED STORES ............ NZ Post will not accept
"Q: Will people in New Zealand be able to post infant formula to their relatives overseas?
A: No. If someone buys infant formula from a supermarket and posts it from New Zealand without following the regulations for exporting dairy products then they are operating unlawfully and outside the regulated export supply chain. This has always been the case under the APA. The law has not changed.
Under New Zealand law, any infant formula that is sent to anyone in China needs an Export Certificate (also commonly called a Health Certificate). MPI issues such Export Certificates. To receive an Export Certificate from MPI, the infant formula must meet MPI requirements for export to China and the infant formula must stay with an MPI approved Risk Management Programme (RMP) holder continually from the farm up to export. If infant formula leaves the RMP chain it is no longer eligible for export and MPI cannot issue an Export Certificate.
These rules apply to all dairy materials and products."