Technical stars aligning here? MA30 vs MA100
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Technical stars aligning here? MA30 vs MA100
Share price looking strong heading into full year results next month. What do ya think.....maybe a little div announcement....We are making so much dosh, and would like to give some back to shareholders;).
100% no chance for divvy yet. Reason being they're just hitting huge growth phase and with investments in UK and USA yet show any profitability I doubt if they be contemplating on dividends at the moment.
Moreover from recent upgrades cash on hand was about $50 mln or so and if they were to give 5c or 10c that's like $35m or $70m on roughly 700 mln shares on issue.
What do people think about the court case against Lion that has started in Australia? Might affect share price the uncertainty?
Yes well done. Down she goes! wonder if she will bounce back before results or drift downwards.
a2 Milk Company’s Peter Nathan says farmers have rushed its door
http://cdn.newsapi.com.au/image/v1/1...8fbb?width=320
a2 Milk chief executive Peter Nathan discusses farmers’ desires to access China. Picture: Aaron Francis
- ELI GREENBLAT
- The Australian
- 12:00AM July 28, 2016
The a2 Milk Company (A2M) says dairy farmers have made a rush for its doors, asking to supply milk to the booming dairy and infant formula producer, attracted by the premium it pays for a2 protein products at a time when global milk prices have collapsed.
Peter Nathan, the Australia and New Zealand boss of a2 Milk, said the company had taken on new farmers since processor Murray Goulburn slashed its milk price for suppliers by more than 10 per cent in April, which sparked a similar move by New Zealand’s Fonterra, plunging farmers into financial despair.
However, a2 Milk, which last month issued its third profit upgrade in six months, bolstered by insatiable demand for its products in China despite a regulatory crackdown, would be cautious bringing on new supply.
“We clearly have a lot of farmers who would gladly supply us, and we would need to obviously talk to them, to audit their herds, select the a2 cows,’’ Mr Nathan told The Australian after appearing on a lunchtime panel for Australia Business Forum’s Australia-China Business Week.
“There are a number of farmers who have expressed interest in supplying us based on the fact they do gain a significant premium,” he said. “And we have taken on new farmers, and will continue to look for new farmers, but we need to make sure the supply meets the demand and we don’t get in front of ourselves.”
a2 Milk’s biggest supplier is the Perich family’s Leppington Pastoral Co. Its prices are about 30-40 per cent higher than those paid to farmers supplying the likes of Murray Goulburn and Fonterra.
Business is thriving for companies such as a2 thanks to huge demand from China for its infant formula range, with the company recently updating its full-year forecast to project revenues of $350m-$360m for the current financial year and pre-tax earnings of $52m-$54m.
However, shares in a2 Milk, as well as other dairy and health market darlings Blackmores and Bellamy’s Organic, took a tumble in April when the Chinese government announced a crackdown on foreign goods, such as infant formula and vitamins, entering the country.
Mr Nathan said a2 Milk was well progressed on having its export registration ready by 2018 as stipulated by the new rulings from Beijing.
“There is a formalised process that we need to go through, that is being documented very well and we need to abide by that process.”
Also on the business panel yesterday, Swisse Vitamins CEO Radek Sali said the health products sector was at the beginning of a “golden age” for selling wellness goods into China