ATM - A2 Milk Corporation Limited

[sb9]

Here's latest from Prof Keith and it starts....

"The joint venture agreement between Fonterra and The a2 Milk Company (A2M) to work together producing dairy products free of A1 beta-casein is a seismic shift for both the New Zealand and global dairy industries."...

https://www.interest.co.nz/rural-new...rking-together

[hardt]

Here's latest from Prof Keith and it starts....

"The joint venture agreement between Fonterra and The a2 Milk Company (A2M) to work together producing dairy products free of A1 beta-casein is a seismic shift for both the New Zealand and global dairy industries."...

https://www.interest.co.nz/rural-new...rking-together

Fonterra has essentially conceded a decade long dispute of the impact A1 beta casein has on certain peoples stomachs.

Even though this is purely Fonterra jumping on-board the money train, the agreement has put a nail in the coffin of this long dispute between the two parties.

[minimoke]

Found this ABC news report interesting...... ABC News

I like the bit where they have a stated preference to keep the $240m war chest intact for future possible capital purposes rather than handing back to shareholders. On the basis they can do a better job on capital return than a shareholder could if they got a dividend. So maybe there is a plant purchase in China on the horizon

[hardt]

I like the bit where they have a stated preference to keep the $240m war chest intact for future possible capital purposes rather than handing back to shareholders. On the basis they can do a better job on capital return than a shareholder could if they got a dividend. So maybe there is a plant purchase in China on the horizon

The appeal of overseas food brands in China... is that they are from overseas.
Made in New Zealand and Australia is seen as premium over there.

[Leftfield]

I like the bit where they have a stated preference to keep the $240m war chest intact for future possible capital purposes rather than handing back to shareholders. On the basis they can do a better job on capital return than a shareholder could if they got a dividend. So maybe there is a plant purchase in China on the horizon

I hope they steer well clear of plant in China......I can't think of many company's that have made China work. Better to use NZ/China/Aus free trade agreements and export into that market for the next few years. The premium for foreign brands will continue.... remember the melamine scandal!!??

In the video Peter Nathan said, "there was no capital used in the Frontera Deal." When you think about that.... and the benefits.... that's a huge steer to the way ATM should go. JMHO!!

[Beagle]

Well,what a wild couple of days that has been. I'm a firm believer in locking in some profits - or at least making the most of an increase in personal assets. So no guessing what I've been up to tonight.

But how hard was it. There I was looking at $14. What do I do. Lock in profits or let profits run, or buy more or sell or what too many decisions and teh market moving way too fast.

So I had to take a step back and deliberately think that I am not a trader. I am no good at picking highs or lows. And I made the original buy decision with a five year window in mind. So I'm sitting here enjoying the last of my evening. not ruing the lost profits I didn't lock in and not worried about the market tomorrow. I know its going to drop
but the long term prospects are looking too good to be a worry.

Amen to that. Yes there could be a slight pullback but why sweat the small stuff ?. We're all "in clover" with this, just sit back relax and take a 5 year view and let your profits grow. I do find myself easily obsessed with looking at the SP though, hard not too in the last couple of days and like you I got tempted when it hit $14.50 the other day. But I slapped my own hand and said stay away from the sell button. This will be $5-6 or possibly even more in a few years time after the 5:1 share split along the way. Why dismount from a thoroughbred horse to ride some donkey that's not growing at anything like the pace ?

[777]

Just remember Babidge leaves later this year. His replacement will have her own agenda.

[westcoaster]

My gutometer has served me well since entry with an average buy in of 36c.
I have deliberated on an almost daily basis over the past 3 years whether to sell or not all the way until yesterday. Many times dollars in the bank seemed like the "right thing to do", lucky I didn't listen to myself then. instead Ive relied on the masters to speak so refer back to this post I made all the way back then.

http://keithwoodford.wordpress.com/c...1-and-a2-milk/ The science is what I believe gives this stock its value.

And because of that, I am still in. My reasoning has always been, "could I afford to buy back in for the price I sold?
And more to the point, how would I feel when this reaches $30-$45 next year.
GLTH...hang in there

[Beagle]

My gutometer has served me well since entry with an average buy in of 36c.
I have deliberated on an almost daily basis over the past 3 years whether to sell or not all the way until yesterday. Many times dollars in the bank seemed like the "right thing to do", lucky I didn't listen to myself then. instead Ive relied on the masters to speak so refer back to this post I made all the way back then.



And because of that, I am still in. My reasoning has always been, "could I afford to buy back in for the price I sold?
And more to the point, how would I feel when this reaches $30-$45 next year.
GLTH...hang in there

Nice post, well said.

[Sideshow Bob]

Just remember Babidge leaves later this year. His replacement will have her own agenda.

I hope they offer him a place on the board.