ATM - A2 Milk Corporation Limited

[Chanchay]

Speaking to one of my old mates earlier in the week, A2 back into air freighting quite a bit of product to China pre-Christmas. Normally with supply they'd be sea freighting, but guess low on stock......

Low on stock in China? Does this mean production is low or sales are high? Hopefully the latter

[Lewylewylewy]

There have been reports of an Asian food shortage for years, due to growing population.

[Sideshow Bob]

Low on stock in China? Does this mean production is low or sales are high? Hopefully the latter

I think the latter - said that normally these days seafreight mostly - much cheaper.

[tomm]

The a2 Milk Company (ATM) Another Tick for the Formula


20 NOV 2019


The a2 Milk Company (ATM)’s Annual Meeting was positive — with first time 1H20 guidance confirming strong revenue momentum, particularly in Infant Formula (IF), and upgraded FY20 margin guidance. Highlights were (1) a further broadening in sales channels in China; (2) signs of success in extending customer tenure and (3) gross margin momentum. Despite a share price reaction ahead of our earnings upgrades, we continue to view risk/reward as positive. Valuation metrics (EV/EBIT 16x, PE 23x adjusted for US losses/cash) are attractive vs peers, history and the market, particularly given ATM’s strong free cashflow and growth outlook.
We are attracted to the opportunity for ATM in existing markets in addition to new markets and products — with ATM currently only scratching the surface of a material market opportunity. Valuation outcomes are wide, but in our view current valuation metrics offer a favourable risk/reward, particularly when adjusted for loss-making markets. OUTPERFORM.

[see weed]

I'm all out now, will wait for a dip as it's getting way overbought, happy to book the profit and keep it.

Sorry to see you go. I'm all in, bought my last lot this morning at 15.42. My average price is now 9.12c. Am enjoying the ride for now, $16 here we come. Looks like we are in a bit of an uptrend in last 4 weeks.

[couta1]

Sorry to see you go. I'm all in, bought my last lot this morning at 15.42. My average price is now 9.12c. Am enjoying the ride for now, $16 here we come. Looks like we are in a bit of an uptrend in last 4 weeks.

I wont be out for long, just waiting patiently for a dip and then will hold long as I have enough tax to pay next year as it is.

[see weed]

I wont be out for long, just waiting patiently for a dip and then will hold long as I have enough tax to pay next year as it is.

Did the same at 70c hoping it would come back to 45c to 50c a few years back and it went to $2.....bought back in and sold about $2.60ish....but didn't come back and then had to buy back in at $7 and have kept them. Still got one original block bought at 50c 4 years ago. I have a good system to get your tax down, put into action Feb last year.

[couta1]

You mean the old divvy strip then sell for a loss system?

[see weed]

a2m is knocking on $15s door.. knock knock knock let me in.

[see weed]

You mean the old divvy strip then sell for a loss system?

Yes. Saved me about 50k but still had to pay 11k plus 11k provisional and got a 17k refund for this year.