Last nights Current Affair showed the shortage of baby formula on Australia supermarket shelves.
Thank you Tracey.
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Last nights Current Affair showed the shortage of baby formula on Australia supermarket shelves.
Thank you Tracey.
Freedom Foods would surely be kicking themselves, no doubt. However in case of Milford they must've been sitting big paper loss for a long time hence may have been forced to sell when a good opportunity came along.
The trading depth on ASX looks pretty ominous, highly likely that we might see that $1 mark hit on both bourses or at least on NZX, just when is the question today or tomorrow?
Approaching a 2 year high and mkt cap re $661 million; just a little bit over exuberant a bit too frothy like a cappuccino?
Already sent my placement form in, but didn't go for the maximum $15k. Bugger!!
Choo Choo!!!
How would we fund it tho? More Cap raising or enter a JV with someone to help lower the costs
Wish they could allocate bit more to the public pool than $3 ml, how about raising that to $10 ml?
Is there a provision they could do that or wishful thinking on my part?
Bellamy's shares down 4% in Oz today on very light trading. Looks like it has lost its fizz. Whereas A2M is up 3.6% over there on heavy trading.
Building a new powder plant in Oz would be only half the trick. Remember it took Chinese officials months to approve the Synlait plant in Canterbury, which manufactures a2MC's infant formula for export, even though it is largely Chinese-owned. Synlait currently has more capacity reserved for a2MC to increase its infant formula throughput, much of which actually goes to Australia, not direct to China.
a2MC will regain control of the NZ a2 milk market in 2017 when Fresha's licence expires, and we can be sure the company is already working on plans to increase exports from this country when that happens.
Another possibility that perhaps should not be ignored is that Jeff O'Neill, a2MC's CEO for the US, might stitch together a deal with Deans to export a2 infant formula to China out of the US. The US has a huge dairy herd (partly a2) which is currently facing a price downturn a bit like the one Fonterra faces, and Deans has the plants and infrastructure that could be utilised. Might not need any capital-raise. An arrangement something like a2MC's deal in the UK with Muller Wiseman could provide a quick fix. It's a time for lateral thinking.