ATM - A2 Milk Corporation Limited

[mondograss]

not specific enough. A glass of water is A1-free as well and so is soya milk or coconut milk. None of them contain A2, though.

Hasn't stopped companies advertising products that have never and would never contain gluten as being gluten-free.

[Jay]

Hasn't stopped companies advertising products that have never and would never contain gluten as being gluten-free.

I see that all the time as well mondo and often comment about it out loud, but in a quieter voice!

[Rossimarnz]

Hasn't stopped companies advertising products that have never and would never contain gluten as being gluten-free.

I was surprised recently when I bought a packet of ground almonds that the label had a warning that it may contain traces of nuts!!! I was wanting more than just traces.

[mondograss]

I was surprised recently when I bought a packet of ground almonds that the label had a warning that it may contain traces of nuts!!! I was wanting more than just traces.

I blame the Americans. “You didn’t tell me these nuts contained nuts, I’ll sue you into next year!”

🥜

[BlackPeter]

I was surprised recently when I bought a packet of ground almonds that the label had a warning that it may contain traces of nuts!!! I was wanting more than just traces.

We are deviating from the thread ... however - almonds are not nuts ... i.e. the warning is justified (they probably use the same mill as well for nuts - and traces of nuts might be mixed with the almonds).

Back to milk: Of course - some companies make quite obvious but not value adding product claims like "gluten free mineral water". I don't know whether it increases their turnover .... personally I try to avoid companies who don't respect their customers (i.e. treat them as stupid).

I am however quite sure that the majority of concerned parents won't feed their baby's any white powder which claims to be "A1 free", but they will go for the real thing if they know that they want A2 ...

[iceman]

An acquaintance had 2,000,000 shares of these a few years back. He was wrapped to sell them for 25 cents a piece. Last time I saw him he was not too happy. Amazing how if only we could change the past haha.

Taking off like a Boeing 717........ $7.17

And he bought them for 5c you say. How many of the current cheerleaders of ATM have 5x their money do you think ? I was similar to your "acquaintance" but a little bit later. Quadrupled my money but sold out too much way too early. Lessoned learnt. The question is what these people did with the money since then. Most would have made more staying in ATM. Not all though. That is the real issue.

[couta1]

And he bought them for 5c you say. How many of the current cheerleaders of ATM have 5x their money do you think ? I was similar to your "acquaintance" but a little bit later. Quadrupled my money but sold out too much way too early. Lessoned learnt. The question is what these people did with the money since then. Most would have made more staying in ATM. Not all though. That is the real issue.

Learning to be happy with whatever gain you make,whether it be optimal or not is a great attitude to have. Anybody basing their happiness on optimal sharemarket gains are in a very sad place IMO (Have been in that position myself in the past)

[iceman]

Learning to be happy with whatever gain you make,whether it be optimal or not is a great attitude to have. Anybody basing their happiness on optimal sharemarket gains are in a very sad place IMO (Have been in that position myself in the past)

Totally agree with that one mate. And a bit of skiing and fishing :-)

[hardt]

Earnings growth for FY2018 to FY2020.

2 x 1.2 x 1.2 = 288%

A 288% incremental increase in the A2 cow herd in just three years is quite a few female calves to born. If half the cows born are female we are talking about:

2 x 288% = a 576% increase in A2 cows to be born.

And 'new' cows won't be ready top calve (compound in accounting terms) until 24 months is up, at the very earliest. So all the required growth needed to have started two years ago. You can't just rack the growth up year by year in cows by putting them on a spreadsheet Beagle. And I still have yet to factor in the removing of the old cows at the other end of their production life. One day you should venture south of the Bombay Hills, and have a look at a real cow. Then you will find out why your attempt to create one on your 3D printer hasn't worked!

SNOOPY

NZ farmers supply Synlait - IF and Aussie farmers supply the wet-milk sold in Aussie supermarkets.

A2M would team up with or acquire an Aussie milk processor to also pump out IF with all that raw material being supplied by Aussie farmers.

A2M would also happily cannibalise their wet-milk sales for higher margin infant formula product if it came down to that...

There is no indication of a possible shortage of raw material

[Hectorplains]

There may be more profit in selling A2 direct to supermarkets in China, rather than through the Daigou sales channels?
Maybe A2 can now sell direct to consumers over the web , boosting profits again?
Maybe the Daigou sales channels will start to promote other brands instead of A2, if A2 market direct?

Yes you don't necessarily have to double sales to double profits. But I would say there are quite a few unknowns as to how the changes in sales channels will work for A2 in the future.

SNOOPY

Don't underestimate the role of the Daigou, trade with China is not a linear process. Bellamy's made this mistake last year and halved their share price.