ATM - A2 Milk Corporation Limited

[Leftfield]

Food processor and A2 milk competitor in Australia, Freedom Foods under investigation after alleged accounting scandals. See story here.

"Freedom reported, in October last year, that it earned a full-year profit of $11.6 million. But that figure has now been "restated" as a $145.8 million loss.
The cereal business also confessed its losses had since widened to $174.5 million in the last financial year (ending June 30, 2020)."

[winner69]

Food processor and A2 milk competitor in Australia, Freedom Foods under investigation after alleged accounting scandals. See story here.

"Freedom reported, in October last year, that it earned a full-year profit of $11.6 million. But that figure has now been "restated" as a $145.8 million loss.
The cereal business also confessed its losses had since widened to $174.5 million in the last financial year (ending June 30, 2020)."

Careful how you say things leftie - quick read was Freedom AND A2 been fiddling their books

Too early for frights like that

[Leftfield]

Careful how you say things leftie - quick read was Freedom AND A2 been fiddling their books
Too early for frights like that

Crikey Winner apologies - don't want you choking on your morning cereals and A2 milk!

But yeah, it is a competitor to ATM so onwards and upwards for ATM.

[Balance]

ATM is potentially damaged from world politics or benefits from it. No global business operates in a political vacuum.

We think it was a 1 to 1 relationship. Actions of the CCP are directly related to the banking sanctions.

https://www.goodreturns.co.nz/articl...t-decline.html

2 Milk Company declined 3.6 percent to $14.21 today, after a late surge in the NZX trading session yesterday saw the stock close higher in New Zealand than across the Tasman.

Australia’s tense relationship with China, which has imposed a number of barriers and tariffs on exports, is also weighing on investor sentiment as the company is heavily exposed to China.

The dual-listed stock fell sharply today as it caught up with its foreign exempt listing on the ASX, said Grant Williamson, director at Hamilton Hindin Greene.

[winner69]

Crikey Winner apologies - don't want you choking on your morning cereals and A2 milk!

But yeah, it is a competitor to ATM so onwards and upwards for ATM.

Should read more carefully eh ..... but Stuff has deepened the habit of skimming through things - esp since the big apology the other day

[Ruby]

https://www.goodreturns.co.nz/articl...t-decline.html

The next sentence adds context...
"...“On the match yesterday, it did get bought up a wee bit, so it actually closed at quite a difference,” he said. “In Australia it is down 1.2 percent today, so it is really just playing catch up to that price today.”

[Getty]

food processor and a2 milk competitor in australia, freedom foods under investigation after alleged accounting scandals. see story here.

"freedom reported, in october last year, that it earned a full-year profit of $11.6 million. But that figure has now been "restated" as a $145.8 million loss.
the cereal business also confessed its losses had since widened to $174.5 million in the last financial year (ending june 30, 2020)."

"wide"!!!!

[Balance]

https://www.goodreturns.co.nz/articl...t-decline.html

The next sentence adds context...
"...“On the match yesterday, it did get bought up a wee bit, so it actually closed at quite a difference,” he said. “In Australia it is down 1.2 percent today, so it is really just playing catch up to that price today.”

Yup - playing catch up with the sp drop yesterday with the ASX drop on Monday.

Simplistically, ATM's sp should recover if the geopolitical & trade tensions between Oz & China abate and dissipate.

Question - how likely is that?

Whatever happened to quiet diplomacy?

[Davexl]

Article from our very own Anne-Marie Brady - might be somewhat reassuring (On Geo-Political Risk blog also)

China is humiliating Australia as an example to others - but the bullying won't last

https://www.smh.com.au/national/chin...01-p56jfz.html

Nice big buyer of 83000 odd shares at $14.18 also for backstop...

[tomm]

BROKERS UPDATE REGARDING A2M

https://www.fnarena.com/index.php/se...rchkeyword=a2m

Below is each of the above brokerage/analyst content detail

Morgans (Add recommendation; SP target $17.28)
_{https://www.morgans.com.au/Blog/2020...could-overhang}

Macquarie (Outperform recommendation; SP $17.95)
_{https://www.f**l.com.au/2020/11/22/top-brokers-name-3-asx-shares-to-buy-next-week-22-november-2020/}
"....Macquarie, its analysts have retained their outperform rating and $17.95 price target on this infant formula and fresh milk company’s shares. This follows the release of an update at its annual general meeting which reiterated its guidance for FY 2021. While the broker notes that a2 Milk Company will require a huge second half and that there’s still a lot of uncertainty in the daigou channel, it remains positive on the company’s medium term growth prospects"


(think UBS stuff was posted earlier by werdplayer? ignore if this is a repeat)
UBS (Buy recommendation; SP target $20.50)
_{https://www.sh*recafe.com.au/2020/11/19/a2m-ubs-rates-the-stock-as-buy-5/}
Credit Suisse (Buy recommendation; SP target ?)
- I could not find any publicly available analyst comments/SP target price; anyone else can find it?

Finally,
_{https://www.msn.com/en-au/money/stoc...-a2m/fi-aa45a2}
*Credit Suisse data does feed into MSN Money finance tables, so whatever their price target is, its included in 12mth SP target $19.17 with EPS estimate of 0.53