ATM - A2 Milk Corporation Limited

[martinchnz1]

And the pattern of ATM's sp opening & trading higher on NZX, and then going lower when ASX opens continue!

Making some high risk trades to make some gains off that trend?

[Leftfield]

A2 remains Harbour's highest conviction position.....read it here.

"a2 Milk remains Harbour’s highest conviction position in equity growth portfolios. Despite the price fall after announcing its annual results, the share price today is still up 28% so far in 2019.

Our view is unchanged that a2 Milk is on a journey to become a global leader in dairy nutrition. Yesterday’s announcement to significantly increase investment in market development gives us confidence that they are prepared to sacrifice short-term gains in order to pursue large growth options."

[RupertBear]

A2 remains Harbour's highest conviction position.....read it here.

Good read thanks for posting Left Field

[flyer]

Exactly, the larger spend on marketing and hiring of new staff is all part of major growth. Their result announcement was fantastic, they will grow their USA sales and just keep on getting stronger. I think the share price at these levels is great to get in at these prices.

[Leftfield]

Two additional takeaways arising from the Harbour analysis;

1.) "We also note that the inventory ‘in transit’ was $30.6mn higher at balance date than last year. We do not know the timing of this but assume it would have been converted to revenue soon after the fiscal year ended. Had this shipment been booked in late 2H19 as opposed to early in 1H20, a2 Milk would have comfortably met the earnings expectations in the market."

2.) The next update from the Company will be at its Strategy Day in Shanghai, China on 17th -18th Sept-2019, where we look for more detail on A2M’s investment in capability and insights on its consumers in China."

Interesting times ahead for A2 and mark Sept 17th - 18th in your diary.

To see the Harbour report.....read it here.

[Miway]

Thanks for that LF. A positive report!

Two additional takeaways arising from the Harbour analysis;

1.) "We also note that the inventory ‘in transit’ was $30.6mn higher at balance date than last year. We do not know the timing of this but assume it would have been converted to revenue soon after the fiscal year ended. Had this shipment been booked in late 2H19 as opposed to early in 1H20, a2 Milk would have comfortably met the earnings expectations in the market."

2.) The next update from the Company will be at its Strategy Day in Shanghai, China on 17th -18th Sept-2019, where we look for more detail on A2M’s investment in capability and insights on its consumers in China."

Interesting times ahead for A2 and mark Sept 17th - 18th in your diary.

To see the Harbour report.....read it here.

[Leftfield]

Shorters increasing ahead of CEO Jayne's next sell-off. A last fling before the Shanghai strategy days 17/19 Sept??

See it here.

Holders will hold, sellers will sell, buyers will buy. Short term turbulence ahead....

DYOR and take responsibility for your own decisions.

[Balance]

Short term, the jury is out imo on ATM's strategy of spending more in the US (a graveyard for most NZ companies selling products, rather than services) and building up sales via Mothers & Baby stores so the update on 17/19 Sept will be very useful.

So much to happen on the Trade War front until then which is the singular biggest driver of what happens with stocks in general, and specifically with stocks like ATM with exposure to the premium end of the China consumer market.

https://www.investors.com/market-tre...220&yptr=yahoo

"Dow Jones futures fell sharply Monday afternoon, along with S&P 500 futures and Nasdaq futures. On Sunday, President Donald Trump went ahead with new China tariffs on $110 billion worth of imports, including some Apple (AAPL) products for the first time. Beijing retaliated, further escalating the China trade war."

https://www.scmp.com/news/china/dipl...any-trade-deal

"Chinese state media and government advisers have said Beijing is in no rush for a trade deal, instead warning that any concessions made to the United States would be a grave error."

[RGR367]

My gut feel says the Vulgar_ian Comedian occupying the WH is NOT going to win this Trade War for USA. China is a nation not developed by the concept of "westernized democracy" and not fully understood by the world yet. Gut feel says ATM progress in China won't be affected much by this trade turbulence too. All holders pray that this feeling is right

[Balance]

My gut feel says the Vulgar_ian Comedian occupying the WH is NOT going to win this Trade War for USA. China is a nation not developed by the concept of "westernized democracy" and not fully understood by the world yet. Gut feel says ATM progress in China won't be affected much by this trade turbulence too. All holders pray that this feeling is right

Short term turbulence - think of China as a well-built aircraft flying through a storm, one in the many she has flown through in the centuries and still survived as one nation.