There was so much love for ATM at our February 2018 Auckland meeting from almost everyone there when they were ~ $9 I bought more as soon as the market opened on Monday thinking all those bright minds there can't possibly all be wrong :)
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Keep an eye on the 50EMA for a reliable (so far) support, for accumulation or buying opportunity. Currently bouncing off it again after range trading since the late Feb spike. Not a silver bullet by itself but clue #1 on the chart.
As Beagle mentioned above, a lot of love for ATM. It was not your typical discussion about a company, were there was talk about potential and caution.
If one had to give a reason to be cautions with A2M then "a passing fad" is likely all we can come up with at this stage.
However the fact that Fonterra and Nestle getting involved makes this feel that A2 is more than a fad.
You've got to admire the way they quietly keep evolving their product mix...with the latest little gem buried in a nice understaed way, (as usual) deep down in the South Korean launch article about a new variety of A2 infant milk powder blended with N.Z. sourced manuka honey.
Lets think about the impact of this for a minute.
This further differentiates their product from the likes of Nestle and others.
Suppose you are Mr and Mrs comfortably well off Chinese parents. Why wouldn't you buy the best product infused with the legendary manuka honey for your little prince and princess ?
Mercedes-Benz are doing massive business in China, why ? Because people think they make the best cars in the world and there's a lot of wealth in China. (Whether they are the best brand is quite another argument but I am simply giving the illustration of how wealthy Chinese customers are acting to emphasize the importance of this new manuka honey blended infant formula).
I think we could see a very astute play here where A2's platinum IF becomes the one infused with manuka honey and the gold standard becomes the one not blended, or perhaps the other way around depending upon whether their market research indicates people think Gold is more prestigious than Platinum.
I wouldn't think so iceman.
Why would ATM want to buy out whole of a manuka honey making company, just so that they can add that as one of the ingredients in a new range of product. Would they not be better off leaving that in the capable hands of their cornerstone manufacture SML to source it for them as part of their supply chain process?
Not really sure about the nutritional desiribility of adding sugar (honey) to infant formula. But I'm sure they will have that covered.
Mate its not going to happen, CEO said in a behind the paywall article on NBR it's an overseas party. There's substantial supply of manuka honey from sources in N.Z. other than through CVT, something some people have their head in the sand about but quite frankly that's their problem :) Quite apart from that ATM management are smart cookies. You don't go wasting shareholders money buying poorly performing companies with management of questionable integrity at 35 times forward earnings multiples, that would be stupid, something ATM management clearly aren't !
The fishing was good today, I bit on the bait, should have noticed your smiley at the end eh mate :) Guess I am a little frustrated as a former shareholder of CVT. They could be a really good company if management could get its **** together. I think there's deep systemic issues in that company that they're not disclosing.
I know Forest went to a recent annual meeting and came away unsatisfied with the "answers" he got. Anyway, sorry I am off topic on a tangent...back to talking about sweeter things, ATM infant formula blended with manuka honey, how sweet and full of natural goodness does that sound !!!!!
Its going to sell like hot cakes fresh out of the oven at really premium prices. Further margin expansion for ATM going forward ?
THIS IS A HARD FISH TO CATCH Today and yesterdai. Have just upped my buy order from 11.90 to 12.22:eek2: Maybe better buying tomorrow.
What’s this amateur hour you guys talk about?
I bought some more at open this morning .....does that make me an ‘ amateur’