Large volumes overall, beating last years same month which was the high for that year. Aussies like it, A2M technical gap up and breakout of the declining resistance trend line from 16 May, now support.
Yes, some big numbers last year May and they beat those volume numbers for current year May as per the poster jzhuang on HC.
Going by attached file as per below, we could roughly expect a growth between 40%-50% for A2 earnings for FY19.
While exports paint an overall picture, I don't think too much can be read into it for A2 - a bit of a pimple in terms of volume. Fonterra turns over $20b a year, Synlait another $1b, Open Country probably the same, then add in Westland, Tatua, Oceania, Mataura Valley, etc etc.
Value can be explained by prices and FX rates, volume can be milk season or what form it takes when exported. Production was 2.4% up nationally this past season.
Something to speculate on, on a quiet Tuesday arvo, but next update will reveal more. Circa 17 days to go now......
While exports paint an overall picture, I don't think too much can be read into it for A2 - a bit of a pimple in terms of volume. Fonterra turns over $20b a year, Synlait another $1b, Open Country probably the same, then add in Westland, Tatua, Oceania, Mataura Valley, etc etc.
Value can be explained by prices and FX rates, volume can be milk season or what form it takes when exported. Production was 2.4% up nationally this past season.
Something to speculate on, on a quiet Tuesday arvo, but next update will reveal more. Circa 17 days to go now......
Agree with you, however that data as per my previous post is just for Lyttelton port (Chch) wherein majority of quantity is representative of Synlait's volume.
Agree with you, however that data as per my previous post is just for Lyttelton port (Chch) wherein majority of quantity is representative of Synlait's volume.
One broker that believes it isn’t too late to buy the fast-growing company’s shares is Goldman Sachs. According to a note out of the investment bank on Tuesday, its analysts have retained their buy rating on a2 Milk Company’s shares following the release of infant formula export data. Goldman has also retained its AUD $15.70 price target on its shares, which implies potential upside of almost 14% over the next 12 months. What export data was released?
The note reveals that total infant formula exports (by net weight) from Lyttelton, New Zealand to Australia, Hong Kong, and China increased to 4.24k MT during May. This was a 1% increase on the prior corresponding period and a 23% month on month increase. Goldman was quick to point out that these exports were cycling a particular high comparable period, hence the lower year on year growth figures. On a rolling 3-month and 6-month basis, total volume growth is an impressive 42% and 47%, respectively, over the prior corresponding periods. This was in-line with Goldman’s expectations and the broker sees it as supportive of overall trends and its forecasts for both a2 Milk Company and Synlait Milk Ltd(ASX: SM1). Incidentally, Goldman Sachs is also bullish on dairy processor Synlait. It has a buy rating and lofty AUD$11.00 price target on the company’s shares, implying potential upside of almost 25% for its shares over the next 12 months.
... Goldman Sachs is also bullish on dairy processor Synlait. It has a buy rating and lofty AUD$11.00 price target on the company’s shares, implying potential upside of almost 25% for its shares over the next 12 months.
GS probably right on the ATM comment. But I am having doubts over their comment on SML. In couple weeks time, we should be able to find out how the ATM and SML performs. Will it be the "Love is the New Hate" relationship between the two companies?
Originally Posted by Baa_Baa
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