The sp has gone bonkers today....especially since ASX opened!!!
Printable View
The sp has gone bonkers today....especially since ASX opened!!!
Dipped into the savings to apply for the whole 15k allotment.
Hey silu or anyone have you received your share purchase plan in the mail; 30th oct was the supposed mailing date? Thanks in advance JT.
JT , you can do it online
https://events.miraqle.com/a2-milk-s...-spp%2fHome%2f
Ok if you are into small change fair enough. The price was a lot lower when I wrote that so I suspect now that every man, his dog and cat will be forking out $15k to take a share of an ever dwindling pool of available shares. Higher differential, lower number ...same result
Its gone nuts on ASX, hit 84c A$ as I type. Might be inching to that magic $1 mark soon.
http://www.smh.com.au/business/intel...11-gkwhb2.html
Although this article is talking about Bellamy's issue, I'd like to watch closely how a2mc's management team is going to handle their when-demand-is-greater-than-supply situation in the short term. As one of ATM's shareholders, I'm glad that the company is planning to build a new factory in the long run.
ATM's Australasian CEO Peter Nathan has emphasised in an Australian ABC interview the point I made in post 4703, that the company can't massively increase its formula production overnight:
PETER NATHAN: What we have to do is to build additional herds because we are the only brand that has product which contains milk powder which contains only the a2 type of protein and not a1. So what that means is we have to breed cows that naturally produce the a2 protein and that takes a little bit of time to select those cows which naturally produce the proteins.
(ABC Interviewer): Mr Nathan says a2 Milk is considering building an extra processing plant.
PETER NATHAN: Any sort of building a plant in conjunction with other parties is a longer lead time and we will not make it in the short term. In the immediate term the focus for us is to build supplying capacity with our existing supplier (Synlait).
Incidentally, some Australian investors are now querying whether the recent dramatic rise in Bellamy's SP is sustainable, especially given that it takes time for new organic farms to gain certification and join that company's supply chain. Many of them think a2MC's share price prospects at the moment look a better bet, likely to surpass A$1 very soon and go a lot higher in the medium term, driven in part by Chinese investment. I'd be inclined to go along with that if the present dairy investment hype continues.
Peter Nathan is correct in pointing out that it takes time to breed up A2 herds, but the formation of A2 herds can also be done in other ways (and much more quickly). Firstly, some farmers have already been building up A2 herds in anticipation of a big move towards A2. And secondly, A2 herds can be formed by buying A2 cows from existing mixed herds.
There are currently hundreds of thousands of A2 cows mixed into Australian and NZ herds, whose milk at present is just being wastefully mixed into the general supermarket A1-A2 milk hotch-potch. If there's enough demand for A2, as there now appears to be, it just needs someone to get organised and buy up these cows that are already of milk-producing age, to create new A2 herds. That's assuming a2MC and Synlait are amenable to this and can handle the processing. It can't be done overnight, but it could be done in months rather than years. Interesting times ahead.
13.5 million shares changing hands pre-opening. All pointing towards hitting 90c today.
Hey y'all! DO NOT PARTICIPATE IN THE SHARE PLACEMENT!
Sincerely,
A greedy investor :)
And to think that Freedom Foods, a longtime cornerstone shareholder in a2MC, sold down 42m shares on 20 October for NZ73c a share. So far they've lost over $8m in just over three weeks on that call. Not to mention Milford of course, which sold about 15m shares a little earlier at around NZ70c. A few people must be kicking themselves.