ATM - A2 Milk Corporation Limited

[Beagle]

Analyst average sales forecast for 2018 was $945m. They may go close to this but to be honest this was not the sort of trading update I hoped for.
I admit I was in the $1b+ camp. That said the SP reaction seems a bit overdone to me. Nothing too shabby at all with sales growth of 70% and its clear they're investing money in marketing growing their business over the long term going forward.

I'm not panicking but not buying either.

[carrom74]

You might be able to buy them back at $8.37 carrom

Actually Rupert--- couldn't resist and ended up buying a small lot at 1050....

I doubt it will reach 8.37 anyway

[RupertBear]

Actually Rupert--- couldn't resist and ended up buying a small lot at 1050....

I doubt it will reach 8.37 anyway

Good on you! I was thinking about topping up a wee few around that level as well but chickened out! Will see if it drops back again....

[winner69]

Agreed, but the growth all came in the first half and will drop out of the yoy soon enough. Company does say revenue weighted to first half so maybe it's all fine and growth will continue. Must be a limit to what can be milked from China, need to see other markets like UK and USA pulling their weight.

....but Q4 slaes are going to be 100% plus up on corresponding period

[winner69]

The Company is anticipating Group revenue in the range of NZ$900 million to NZ$920 million for the 12 months ended 30 June 2018. This takes into account the planned transition to new infant formula packaging during Q4.

Todays announcement suggest an impact of transition to new formula packaging during Q4.

It is not clear to me if without this transition the revenue in Q4 would have been more or less. Anybody has some insight in this?

Q4 sales going to be 100% plus up on last year

% increase in Q4 also about the same as achieved in Q3 (v pcps)

[couta1]

I am thinking you probably couldnt resist buying a few more couta!

If it went under $10 then for sure but I bought 12k shares yesterday instead (Ouch)

[RupertBear]

If it went under $10 then for sure but I bought 12k shares yesterday instead (Ouch)

Bummer but it will go back up

[gbogo]

more on The Gap(s).. Gap 1 is shown by the blue line. Gap 2 is the red one. and there's a third Gap today (pink) but not so relevant as is has already been filled.

Gap 2 was filled in early April. Gap 1 is not yet filled and would suggest buying at $9.50, which is also where a lot of support would be found from previous sellers at that level.

hope this helps explain the comments a little more.

Attachment 9671

[winner69]

more on The Gap(s).. Gap 1 is shown by the blue line. Gap 2 is the red one. and there's a third Gap today (pink) but not so relevant as is has already been filled.

Gap 2 was filled in early April. Gap 1 is not yet filled and would suggest buying at $9.50, which is also where a lot of support would be found from previous sellers at that level.

hope this helps explain the comments a little more.

Attachment 9671

Todays GAP will get filled at full year announcment time when things were honky dory after all

[BlackPeter]

Todays GAP will get filled at full year announcment time when things were honky dory after all

You recon we need to wait that long ?