ATM - A2 Milk Corporation Limited

[couta1]

bit of tongue and cheek


Attachment 10041

Kinda sums up the situation perfectly, a picture speaks a thousand words.

[gbogo]

my view... CEO actions don't look great, but the market's reaction indicated that the market was ready for a fall. If there had been plenty of fresh buyers, they would have bought. But I suspect all the passive funds were in, all the trend-followers were in, all the quick-buck punters were in or gone.. Personally, I've had a terrible time with ATM this year, but i don't blame the market for that. I'm surprised at the way the share price keeps coming off, but that's telling us something. Buying in the low $10 area should make sense, but there's a horrible chart pattern that says it $10.00 goes then it's $7.50 next stop..

[couta1]

my view... CEO actions don't look great, but the market's reaction indicated that the market was ready for a fall. If there had been plenty of fresh buyers, they would have bought. But I suspect all the passive funds were in, all the trend-followers were in, all the quick-buck punters were in or gone.. Personally, I've had a terrible time with ATM this year, but i don't blame the market for that. I'm surprised at the way the share price keeps coming off, but that's telling us something. Buying in the low $10 area should make sense, but there's a horrible chart pattern that says it $10.00 goes then it's $7.50 next stop..

$7.50 would mean there's something seriously wrong with the fundamentals and basically no growth going forward which seems highly unlikely.

[James108]

$7.5 would equate to a trailing p/e of around 25, still implying very high growth is priced in.

[777]

Talking it down won't do it any good either.

[steveb]

well nobody seems to want to sell this am.Just 18k shares sold price $10.60 with the next seller at $10.80.Can't be waiting on aussie again!!

[gbogo]

$7.50 would mean there's something seriously wrong with the fundamentals and basically no growth going forward which seems highly unlikely.

agreed, it does seem unlikely. however, I try to go through what-if scenarios and try to figure out what their impact might be.. eg what if US markets took a big fall (like they can do in October..) and spooked markets here? what if some more bad news came out of China re: daigou? what if ATM exited an index for next re-balance and some of the passives had to reverse and sell..?

[couta1]

agreed, it does seem unlikely. however, I try to go through what-if scenarios and try to figure out what their impact might be.. eg what if US markets took a big fall (like they can do in October..) and spooked markets here? what if some more bad news came out of China re: daigou? what if ATM exited an index for next re-balance and some of the passives had to reverse and sell..?

Yes I agree re all those scenarios and that's why I put in a former post that only those holding under $7 have any real safety net.

[nzsharetrade]

never had any good thing after joining index, we see what happens when ATM exits the index.

[Muppett]

That $9.50 gap is not too far away.
Fundamentals .... yeah right.