I don't see much negativity with the report. I have no issues with the management spending money on business related stuff as it is a growth company still. The market is over reacted and A2 has been in this situation a couple of times before.
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Craig off-loaded few volumes at open to shake up and the retails followed with that....compete over-reaction ....
The 9 million dollars in options going to one employee is a bit of a shock
The increased spend on marketing above expectation is the only reason that all projected metrics were not beaten, it's really that simple.
Current pre-market matching on ASX at A$14.90. Maybe this time it was the NZX's turn of overreacting?
Still a great company btw. Happy to hold.
https://www.fool.com.au/2019/08/21/a...th-in-fy-2019/
Excerpt : "According to a note out of Morgans, it was expecting the company to deliver EBITDA of NZ$431.3 million in FY 2019. Morgans was one of the most bullish brokers covering the company, with the market consensus estimate a little lower at NZ$420.6 million. As you can see above, a2 Milk Company has fallen a touch short of expectations."
https://www.shortman.com.au/stock?q=a2m
Shorts had been building up ahead of results so there will be short coverings today by recent shorts to lock in profits.
Have taken the opportunity with the current sp lift from the lows now to sell a few to lighten up on my over-weight position.
I just struggle to understand why so much credence is put on brokers and analysts opinions before a result. These people usually have no idea of what is going on anyway, so why should any company have to 'meet analysts predictions' or get scorched?? As noted above, great result, ton of cash, and only marketing spend increase stopped the company hitting the 'targets'. Hopefully the Aussies are smarter.............