ATM - A2 Milk Corporation Limited

[Beagle]

that what broker said too with ATM...I sold out under $3 and now just keep seeing ATM going up....can not trust broker!!!!!!

Frosty barr said ARVIDA target $1.51...lucky sold out $1.33. never trust broker...always trust the fundamental, the trend and own research. With 1.7m babies in china born last year alone....so u make your own decision.

Can you please tell us a bit more about how they relaxed the rules from one baby to having two ? Does that apply to everyone and are young Chinese couples really responding to this change ?
How many babies born per annum before they relaxed the rules ? When were the rules relaxed ?
Thanks in anticipation of your assistance.

[King1212]

according to the latest news..they will not relaxe the rule as the aging population is too high...I read a bbc short video news....the demand of milks and other food are high demand. That what the Chinese are buying all OZ companies and infrastructure....

[dumbfounded]

Is anyone else on Sharetrader still buying a2 shares? or am I the only one left buying at this higher price? And if you are still buying, why are you still buying at this higher price?

Yes, just bought 10K @ 8.10 24/10 ...just following your jovial self.- averaging up on a good story but then I got on and off the train frequently to stretch my legs.

[sb9]

Yes, just bought 10K @ 8.10 24/10 ...just following your jovial self.- averaging up on a good story but then I got on and off the train frequently to stretch my legs.

So does Blake Waltrip, CEO of US operations...

https://nzx.com/companies/ATM/announcements/309220

Albeit a small parcel of 8,500 shares through on market purchase and paid $7.88 a piece.

Another vote of confidence in my books...

[Dust]

Factoring in the child policies in China is a bit a stretch imo....the type of consumers that are after these products mainly young - middle aged professionals, they aren't going to have more than 1 kid even if the govt paid them to do it...

[gbogo]

that what broker said too with ATM...I sold out under $3 and now just keep seeing ATM going up....can not trust broker!!!!!!

Frosty barr said ARVIDA target $1.51...lucky sold out $1.33. never trust broker...always trust the fundamental, the trend and own research. With 1.7m babies in china born last year alone....so u make your own decision.

I wouldn't suggest for a moment, that blindly following a broker's research is a sensible strategy. However, it is useful to help gauge what the sentiment toward a stock is. I seldom care about the fundamental value of a stock but I'm very interested to know what other people think that value is. In this case, the broker does also have some influence with (active) funds and it is fund buying that has pushed SML and ATM up where they are now - not individuals like me, anyway.

[Beagle]

Factoring in the child policies in China is a bit a stretch imo....the type of consumers that are after these products mainly young - middle aged professionals, they aren't going to have more than 1 kid even if the govt paid them to do it...

Interesting how you can read the minds of so many hundreds of millions of young Chinese couples...I wish Beagle's were bestowed with such amazing psychic powers.

[dumbfounded]

Factoring in the child policies in China is a bit a stretch imo....the type of consumers that are after these products mainly young - middle aged professionals, they aren't going to have more than 1 kid even if the govt paid them to do it...

On the other hand, they have been prohibited by law to have more than 1 child and now that this is no longer the case, some of the rich (middle class and above) would definitely want more and they are the ones who can afford A2 milk.

[t.rexjr]

not sure how relevant but large local broker puts Underperform note out on SML today. target $6 v $8.09 current market. thinks contracts with A2 Milk will not sustain current margins. maybe that's good for A2?

Would have thought current margins would only increase once the new plant is commissioned. Any day now...

[hardt]

Would have thought current margins would only increase once the new plant is commissioned. Any day now...

Margins generally decrease when the kind of volume growth forecasted for Synlait comes through, it is all part of the growth phase.

A2M margins can only increase where already high margin product can be supplied on such a scale.

Synlait can ride A2 milks success all the way into the next decade.

Revenue is likely to double for Synlait every 4-5 years. I personally am not bothered by the 1-2% marginal contraction that is being forecasted by this broker over a period where revenues are growing at 20-30% pa.