ATM - A2 Milk Corporation Limited

[waterboy]

I reckon the P/E ratio not looking to bad now, based on a forward EPS of 47 cents that gives us a PE of 24, using australian price of 11.43. Hope i'm not mixing up my currencies but doesnt seem high for growing company.
Companies could stop some of these shorting games by reporting more often, it is a long time between real financial data.

[couta1]

$11.45 now and before NZX opens.

On a day when US markets are moving to new record highs.

There is something out there which is prompting the relentless selling.

It should be obvious to you Balance, it is to me. PS-What Citi/UBS are doing may not be illegal but it's certainly immoral and despicable.

[tomm]

Here is that bit of info, bit googling on Junelaboa might bring up more details. I couldn't be bothered...

"A local Chinese company called Junlebao is launching an A2-protein infant milk formula in the Chinese market, another challenge for New Zealand stock-market darling a2 Milk. Junlebao's milk is sourced from China, Citi says, meaning that Chinese dairy farms have possibly built a reliable A2-protein milk pool that could spur even more competition. "This could suggest that other domestic brands are close to launching A2-protein formulas, should they all use the same local milk source," Citi says.

That's Ok, it is natural to get jealous for being trustworthy and famous.!

[Balance]

It should be obvious to you Balance, it is to me. PS-What Citi/UBS are doing may not be illegal but it's certainly immoral and despicable.

$11.40 and still falling.

I am not as sure and confident as you are that it's only because of Citi's recommendation and shorting activity. ATM is a very liquid stock and is well researched, so one would expect other brokers and investors to take the opportunity to load up on shares if it's just Citi.

https://au.finance.yahoo.com/news/wh...024934255.html

"Another negative is the increasing competition it is facing in China. Hot on the heels of Mead Johnson entering the a2-only infant formula market last month, a local producer has just done the same.
Chinese baby formula and yogurt maker Shijiazhuang Junlebao Dairy has launched its a2-protein only formula. This is the first time that a major domestic producer has entered this market."

So competition wise, we now have Nestle, Junlebao (local-government owned) and Mead Johnson.

So Mead Johnson is the other multi-national which has entered the A2 milk market in China.

[alex f]

meaning that Chinese dairy farms have POSSIBLY built a reliable A2-protein milk pool that COULD spur even more competition. "This COULD SUGGEST that other domestic brands are close to launching A2-protein formulas, should they all use the same local milk source," Citi says.
Wasnt it Citi and UBS that put a target price of 17.50 not long ago. They boost the price and drag it down to line their own pockets

[bull....]

hammer time right on que from the breakdown yesterday

[Onion]

"A local Chinese company called Junlebao is launching an A2-protein infant milk formula in the Chinese market, another challenge for New Zealand stock-market darling a2 Milk. Junlebao's milk is sourced from China, Citi says, meaning that Chinese dairy farms have possibly built a reliable A2-protein milk pool that could spur even more competition. "This could suggest that other domestic brands are close to launching A2-protein formulas, should they all use the same local milk source," Citi says.

What, if any, income streams accrue to ATM when producers such as Junlebao produce A2 milk products. As long as they don't violate any of ATM's patents and trademarks I'm guessing that they can produce as much as they like and ATM will be completely out of the [earnings] loop.

And what is to stop many others following suit -- culminating in ATM being sidelined in the A2 milk world they initiated?

[Balance]

What, if any, income streams accrue to ATM when producers such as Junlebao produce A2 milk products. As long as they don't violate any of ATM's patents and trademarks I'm guessing that they can produce as much as they like and ATM will be completely out of the [earnings] loop.

And what is to stop many others following suit -- culminating in ATM being sidelined in the A2 milk world they initiated?

ATM is the market leader so it will not get sidelined as long as it maintains its position on the market - hence the increased marketing and promotion spend (which should be understood now and supported by all shareholders).

Question is one of margins - it is clear that other players are attracted to the A2 market with its high margins (created by ATM) so margins will inevitably come under pressure.

[Balance]

It should be obvious to you Balance, it is to me. PS-What Citi/UBS are doing may not be illegal but it's certainly immoral and despicable.

We cannot influence what Citi/UBS are doing but we can keep our emotions in check and if appropriate, take advantage of the opportunity to buy stock cheap.

Big boys' game - shorting and the shorters have been badly mauled by ATM before (in 2017 and 2018).

[couta1]

We cannot influence what Citi/UBS are doing but we can keep our emotions in check and if appropriate, take advantage of the opportunity to buy stock cheap.

Big boys' game - shorting and the shorters have been badly mauled by ATM before (in 2017 and 2018).

I'm all in so cant buy anymore however I have been selling parcels for a loss and buying back cheaper to drive my avg price down and end up with more shares, still it takes a good stomach to watch your holding get knocked many hundred thousand into the red.