To be honest, the real focus and debate should be on Executive remuneration in general, which has been exposed again here as an absolute laughing stock.
Completely farcical that she gets paid her incentive component (which is what the shares should be) before she's actually achieved anything at the company.
Can you think of any men who have recently single handed wiped out over $500m in shareholder wealth so trivially and quickly. I cant. Even the old fullahs at CBL required a group effort.
But she did not.
She sold shares and the SP was higher after she finished than before she started.
It is all these misogynists selling that has subsequently brought the price down.
Not really as the SP was on an upward trajectory until Friday, since then it's been hammered due to her sell down, the SP was heading back to $13 aside from that.
Not really as the SP was on an upward trajectory until Friday, since then it's been hammered due to her sell down, the SP was heading back to $13 aside from that.
As well as any potential impact it had on SML SP....
Not really as the SP was on an upward trajectory until Friday, since then it's been hammered due to her sell down, the SP was heading back to $13 aside from that.
Lets just look at a picture
Edit. And it wasnt so much her a sell down a couple of days earlier that caused the drop. It was after the after-market announcement of her sell down
I liked the previous CEO's of ATM and SML. Two big changes this year. Both companies have changed their CEO, ex JetStar and ex Fonterror are hardly ringing endorsements are they ! The share price of both companies has done very well this year and prior to that. Growth is forecast to slow and there is some uncertainty over whether the indirect sales channels to China could be affected.
There is some question about the veracity of ATM's IP, trademarks patents, brands e,t,c,
After very careful consideration, (and not a knee jerk reaction) there's enough there for me to take a more cautious approach going forward so I have made some portfolio changes today.
Each person has to decide for themselves at what point they reevaluate their investment strategy...for me this is as good a time as any to reinvest some capital into a more value based growth opportunity that also incorporates a reasonable yield component.
Last edited by Beagle; 25-09-2018 at 04:14 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I've been on the road and not able to comment since last saturday's post when I got a tab frustrated by some of the arguably sexist nature of the posts.
After more reflection, I agree that on first appearance the recent sell-down by the CEO (whether male or female) appeared to be a bad move, however I can well recall Feb 2017, when another ATM share sale seemingly spelled doom and gloom......(to some)
Here's a reminder of what was said in 2017, and as you read it, just remember what has happened to the ATM SP since ....
"A2 Milk chief executive Geoffrey Babidge sold 900,000 shares for $2.2m, or an average price of $A2.49, yesterday.
A2 Milk Co's chief executive and chair have sold down their stakes in the milk marketing firm, less than a week after reporting first-half profit more than tripled as demand for its A2 Platinum infant formula surged in its key Australia, New Zealand and China businesses.
Chair David Hearn sold 1 million shares for about $2.5 million, or $A2.48 a share, on Friday, while chief executive Geoffrey Babidge sold 900,000 shares for $2.2m, or an average price of $A2.49, yesterday. Hearn gained the shares by exercising 1 million of his 5 million options, for which he paid $630,000, with the sale to facilitate a property transaction in the UK to move his personal residence, according to documents published to the NZX.
Last week, the milk marketer reported net profit soared to $39.4m in the six months ended December 31, 2016, from $10.1m in the year-earlier period, while revenue rose 84 per cent to $256.1m.
The shares, which are notoriously volatile, had rallied to a record $2.60 in the lead-up to earnings being reported, slipped 1 cent to $2.57 after the results, and have continued to decline since. They traded at $2.51 on Friday, when Hearn sold his shares, $2.44 yesterday, and are down 4.1 per cent to $2.34 today."
In 2017 I continued to 'hold' and I now also continue to 'hold." Since that time the ATM share price has risen over 500%.
Now back to the present, the new CEO has issued me a scare and a warning, and I will watch ATM's performance a lot more carefully.
However back in 2017, I believed in the Board and Management - and I still do.
I liked the previous CEO's of ATM and SML. Two big changes this year. Both companies have changed their CEO, ex JetStar and ex Fonterror are hardly ringing endorsements are they !
We knew about that before Friday
Originally Posted by Beagle
The share price of both companies has done very well this year and prior to that. Growth is forecast to slow and there is some uncertainty over whether the indirect sales channels to China could be affected.
We knew about that before Friday
Originally Posted by Beagle
There is some question about the veracity of ATM's IP, trademarks patents, brands e,t,c,
We knew about that fore ever
Originally Posted by Beagle
After very careful consideration, (and not a knee jerk reaction) there's enough there for me to take a more cautious approach going forward so I have made some portfolio changes today.
Each person has to decide for themselves at what point they reevaluate their investment strategy...for me this is as good a time as any to reinvest some capital into a more value based growth opportunity that also incorporates a reasonable yield component.
I see this as a blip, and likely an over reaction. Regardless of CEO these (ATM and SML) are volatile stocks. I remind myself I started with a long term view. That hasn't changed. Risk profile hasn't really changed.
I have doubled down several times on previous "corrections" and done nicely from that. This time around I am keeping my tinder dry and money in the bank. No adjustment in portfolio for me at the moment.
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Originally Posted by minimoke
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