ATM - A2 Milk Corporation Limited

[Nasi Goreng]

Coca Cola has over 900 manufacturing and bottling plants across the world. Pepsi has over 700. Nestle have 447 factories.

A2 has a small shareholding in Synlait. A2 are growing, SML are doing the investing, when will A2 open their wallets and buy some stainless steel?

[Sideshow Bob]

More thoughts from Keith Woodford....

https://www.stuff.co.nz/business/far...e-world-market

[Balance]

More thoughts from Keith Woodford....

https://www.stuff.co.nz/business/far...e-world-market

Very good perspective vs the doom and gloom PR release by Devon.

Wonder if Devon has been shorting ATM? Would explain somewhat their dismal Alpha Fund performance.

[Nasi Goreng]

interesting last comment from Keith Woodward...

"The rate at which the A2 category grows will also determine the future farmgate premiums for A2 milk. Until now, the A2M has had minimal competition for the existing milk pools. This has led to market premiums being captured and largely retained by A2M rather than by their supplying farmers, or even A2M's processors."

[Beagle]

Very good perspective vs the doom and gloom PR release by Devon.

Wonder if Devon has been shorting ATM? Would explain somewhat their dismal Alpha Fund performance.

The name "Alpha" fund almost as disingenuous as their opinion piece masquerading as journalism.
Unfortunately people get sucked in by names.

[Ghost Monkey]

Back-slapping group thinkers hard at work today. Time to go home, fill up a glass of A2 milk and raise a toast to another successful day.

[Lego_Man]

Nice to see ATM bounce back today after a pretty biased and questionable PR article from a poor performing fund posing as journalism.

To me the most questionable aspect to the article is the implication that A2's IP is weak or non existent. The reality is that it may be some years before A2 takes a legal action against Nestle, and then much will depend on whether A2 has been ‘adversely effected.’ It is simply too early to say whether at this stage there has been any adverse impact on A2.

When it comes to IP protection, think Sony, Samsung and Apple and you will appreciate litigation is a long term and expensive game, that is not to be rushed into.

For those of us who have been with ATM since the 50c days, we have seen it gain profitable market share of around 10% in Australia, and the UK against firmly entrenched opposition (much tougher than Nestle in China.) ATM has shown it doesn't need market domination. All it needs is a profitable niche.

I won't be scared out of my valuable holdings by such sham journalism and wii quietly wait till the company's next update before I make any judgements.

With all due respect, you sound like you might be in love with the story, having made so much money out of it already. Devon are entitled to put forward their thesis in public. If it's rubbish as you say, it'll have no impact. Multiple voices and opinions are what makes markets more efficient.

Also as far as i'm aware, Devon have owned A2 but sold out completely around the highs. The position was profitable.

[Beagle]

With all due respect, you sound like you might be in love with the story, having made so much money out of it already. Devon are entitled to put forward their thesis in public. If it's rubbish as you say, it'll have no impact. Multiple voices and opinions are what makes markets more efficient.

Also as far as i'm aware, Devon have owned A2 but sold out completely around the highs. The position was profitable.

If that's the case how come their Alpha fund has given anything but an alpha performance ? Maybe they're simply not as good with their analysis as other fund managers like Harbour who really believe in the ATM business case ? Surely it couldn't be as simple as Devon talking their own book when they are short ATM..no, not possible seeing as they so "clearly disclosed" their invested position..oh hang on a minute...they didn't

[sb9]

If that's the case how come their Alpha fund has given anything but an alpha performance ? Maybe they're simply not as good with their analysis as other fund managers like Harbour who really believe in the ATM business case ? Surely it couldn't be as simple as Devon talking their own book when they are short ATM..no, not possible seeing as they so "clearly disclosed" their invested position..oh hang on a minute...they didn't

Yes, they have completely sold out the Devon Funds and they'll only realise in few years time what they've left on the table. Just like the Perich family of Freedom Foods who sold out too early in 2015 and in the process lost almost Billion dollar profit. A snippet from AFR...

"In late 2015, Freedom Foods, majority owned by Perich and other family members, sold its 117 million shares in the Kiwi milk company for $93 million.On Wednesday, another good profit result (referring to the latest HY Results) pushed A2's share price to a record $11.30 (30 per cent up on Tuesday's close). Which means those 117 million shares would today be worth a staggering $1.3 billion. Freedom Foods, and by extension Perich, left over a billion dollars on the table."

[Balance]

With all due respect, you sound like you might be in love with the story, having made so much money out of it already. Devon are entitled to put forward their thesis in public. If it's rubbish as you say, it'll have no impact. Multiple voices and opinions are what makes markets more efficient.

Also as far as i'm aware, Devon have owned A2 but sold out completely around the highs. The position was profitable.

All views are welcomed indeed, Lego_Man - all information is good information once it is properly assessed.

Disclosure of interest is however important to weigh how good or bad or reliable the information is.

BTW, Devon has never disclosed any shareholding in ATM.

https://devonfunds.co.nz/fund-updates

In fact, they have been consistently long cash or equivalents (30% plus) which will explain why they have not done as well as the market.