ATM - A2 Milk Corporation Limited

**Baa_Baa** · 25-09-2018, 08:38 PM

The force is strong with this company, despite misgivings, it is looking like sentiment is bottoming today, and it's still above this months low price. Go figure. If you're looking for an entry or top up SP.

Emotion is so hard to avoid, but it's essential to do so. It's your money

**Muppett** · 25-09-2018, 08:53 PM

Originally Posted by longy

Thanks Ggcc. I should rephrase. Re poor judgement of the BOD. They probably did not foresee that the shareholders/media reacted so strongly about it (how could they not, right?)

Personally I did not think 4mil plus was excessive to get a good CEO, given the money that this company is making. Time will tell if she is any good. I can't wait to the next round of announcement.

Any chance you can elucidate why the next round of announcement will be so exciting, in your opinion?

**longy** · 25-09-2018, 09:17 PM

Originally Posted by Muppett

Any chance you can elucidate why the next round of announcement will be so exciting, in your opinion?

I am not sure "exciting" is the word I would use in investing... It got me in trouble many times over. I am more of a steady pace kinda guy. I have always have faith in this management till this episode. I have questioned if I should hold on or time to get out. The more I think about it, Jayne either so blind or so smart to sell all of her shares then follow by a string of poor result. This would prompt some sort of investigation, wouldn't it?

We been told the over head in 2019 will be higher, how high?Tthe word the management used was "slightly". How well is the company doing? They said it is in line with their forecast. What are those all means anyway? It is no way for me to know how well is this company is doing. Since I have decided to own shares in A2... I will need to have faith in the management right? So for me the next round of announcement hopefully be so convincing that I should remain as a share holder or use the funds and invest in something else. So it is not excitement that I seek but certainty.

**Muppett** · 25-09-2018, 10:06 PM

Originally Posted by longy

I am not sure "exciting" is the word I would use in investing... It got me in trouble many times over. I am more of a steady pace kinda guy. I have always have faith in this management till this episode. I have questioned if I should hold on or time to get out. The more I think about it, Jayne either so blind or so smart to sell all of her shares then follow by a string of poor result. This would prompt some sort of investigation, wouldn't it?

We been told the over head in 2019 will be higher, how high?Tthe word the management used was "slightly". How well is the company doing? They said it is in line with their forecast. What are those all means anyway? It is no way for me to know how well is this company is doing. Since I have decided to own shares in A2... I will need to have faith in the management right? So for me the next round of announcement hopefully be so convincing that I should remain as a share holder or use the funds and invest in something else. So it is not excitement that I seek but certainty.

I always want the SP heading North, no matter what I say or how it might be perceived, but I have little confidence in the company for reasons I have previously stated and also because the "relationship mix" between cash, profit and sales alters during the business life cycle of a company. ATM hopefully still has a way to go before it gets to the maturity stage, but that assumes there are no headwinds/problems ahead. It may never get there. But then it may have a second coming. I'll wait till the next full year results are announced in order to get a better handle on the company moving forward. If G.I. Jayne doesn't do it for me and so far she hasn't, I'll take my profit and be boring and invest elsewhere. Time is ticking, just like the Brexit deadline.

**Raz** · 26-09-2018, 06:23 AM

Originally Posted by Ggcc

Yes I do agree and for all of them they usually try their hardest to do well for the company. I just struggle with their remuneration packages not only for this company, but loads of companies. As I said I disagree how much they get paid, but so is life and I just need to move along.

I made regional CEO overseas for a fortune 500, just over ten years ago, I was in that role for three years, it was all consuming of my life, now a lot of lower level jobs are like that...time in the end is the currency we all face. I worked so hard to get the opportunity however the role I got was pure luck in the end, right people in right place at the right time really gave me the job over others...so few quality people get the chance. When you have fulfilled that kind of role you drop into such a small group. Boards are risk adverse they simply want someone that has the experience on that scale, so they do have to pay. The salaries now are rather self serving and in party reflect what happens overseas, the key difference is that places like the US you can be fired so quick and that was why they originally paid so high, two to three years was a good run and no guarantee that next job would be around the corner. That really does not apply in Australia or New Zealand, you really need to have a disaster in NZ to lose the job...so really they are now paid the higher income often with a longer tenure.

What has also changed is that you could not cash out your shares while in the role, legally I was able to however culturally it would have been career suicide to do this in the US. That is still the case over there with the people I keep in contact with... given our small capital market it does seem a strange culture and how remuneration is positioned here, smaller market like AIM in the UK are even more strict..rather than the casual approach to it here.

**davflaws** · 26-09-2018, 07:38 AM

Kia ora Raz
An extremely enlightening and useful post. Thank you.

**Balance** · 26-09-2018, 07:44 AM

https://www.stuff.co.nz/business/far...others-cash-in

Good perspective.

BS however that Blackrock used the price weakness to load up. Sad how hopeless our financial journos are these days.

**Ggcc** · 26-09-2018, 07:53 AM

Originally Posted by Raz

I made regional CEO overseas for a fortune 500, just over ten years ago, I was in that role for three years, it was all consuming of my life, now a lot of lower level jobs are like that...time in the end is the currency we all face. I worked so hard to get the opportunity however the role I got was pure luck in the end, right people in right place at the right time really gave me the job over others...so few quality people get the chance. When you have fulfilled that kind of role you drop into such a small group. Boards are risk adverse they simply want someone that has the experience on that scale, so they do have to pay. The salaries now are rather self serving and in party reflect what happens overseas, the key difference is that places like the US you can be fired so quick and that was why they originally paid so high, two to three years was a good run and no guarantee that next job would be around the corner. That really does not apply in Australia or New Zealand, you really need to have a disaster in NZ to lose the job...so really they are now paid the higher income often with a longer tenure.

What has also changed is that you could not cash out your shares while in the role, legally I was able to however culturally it would have been career suicide to do this in the US. That is still the case over there with the people I keep in contact with... given our small capital market it does seem a strange culture and how remuneration is positioned here, smaller market like AIM in the UK are even more strict..rather than the casual approach to it here.

Very nice post and thanks

I do agree that it absorbs your life, it is the same as being self employed which I was for many years. I could not attend weddings, funerals had to be someone important and socialising was scarce. I lost many friends who just did not understand my sacrifices. I made what I consider good money and saved most of it. It must be the same for CEOs, many of the ones I know have had failed marriages due to their obligations, but they seem happy with the money side