ATM - A2 Milk Corporation Limited

[Valuegrowth]

According to one chief economist culling more than 150,000 head of cattle will have a similar impact on the sector as a drought. I noticed whenever there was drought, performance of Agriculture related companies were below expectations. If culling is equal to drought, then there could be some impact on the sector in the short run. I take these things as short term events. Whenever there is good rain barring heavy rain during harvest season, Agriculture output will go up. During these types of situation, if panic set stock prices could go down. Those who miss promising stocks will begin to accumulate as long as they see great value and growth. Those who panicked when there was short term animal disease such as bird flu and mad cow missed some multibagger opportunities.

[Joshuatree]

I'm hoping its a last gasp effort to drive prices down so they can be collected before selling into the MSCI index buy.

thanks mm.MSCI review and reset happens by the 31st may i think. Is this the NZ biggest stocks index or one of their international/australasian ones?. I understand fund managers and index funds etc get set early on this reset so may already have done their buys. Any other timeline/s appreciated.

[bull....]

italy problems could be a2 problem today

[couta1]

thanks mm.MSCI review and reset happens by the 31st may i think. Is this the NZ biggest stocks index or one of their international/australasian ones?. I understand fund managers and index funds etc get set early on this reset so may already have done their buys. Any other timeline/s appreciated.

No ,index tracking funds can only buy on May 31st, non index tracking funds can buy at other times.The MSCI NZ index is made up of the seven biggest stocks by market cap.

[minimoke]

MSCI. ATM on current market cap woudl put it in third spot behind Auckland Airport and Meridian. In front of Fisher and PAykel, Spark, Ryman and Fletchers

(edit: pre free float adjustment)

[couta1]

italy problems could be a2 problem today

Correction, Italy problems could be NZX problem today.

[777]

No ,index tracking funds can only buy on May 31st, non index tracking funds can buy at other times.The MSCI NZ index is made up of the seven biggest stocks by market cap.

But then a lot of index tracking funds also have non index tracking funds and they could have been buying up ATM in these funds and just transfer them to the index tracking fund on the 31st.

[bull....]

But then a lot of index tracking funds also have non index tracking funds and they could have been buying up ATM in these funds and just transfer them to the index tracking fund on the 31st.

correct , thats why i believe it will be a non event or down as a surprise

[couta1]

But then a lot of index tracking funds also have non index tracking funds and they could have been buying up ATM in these funds and just transfer them to the index tracking fund on the 31st.

Possible, we are all speculating on possible scenarios, aside from A2 there should be a sale on other constituents in that index, as their slice of the pie is made smaller.

[minimoke]

Heres one for Chartists