ATM - A2 Milk Corporation Limited

[sb9]

This also sounds good, but the print faded out after the first paragraph.

Need subscription to read full article as it’s paywalled..

[see weed]

Need subscription to read full article as it’s paywalled..

All good, and thank you longy for pming the article.

[dreamcatcher]

UBS estimate up 6-8%. Guidance upgraded post strong Q3,

Retain Buy with view long runway remains TP NZ$22 seems most brokers have upgraded around these levels

Would imagine most HOLDERS happy with upgrades

[longy]

All good, and thank you longy for pming the article.

Thought I would share a short summary of the article: Mostly very positive. Not a lot of new info that has not already mentioned in the announcement. Except for the forecast from Morgan which another member has already posted here.

It mentioned the following points.

The distributions channels have resumed in China.
Ongoing sales growth across key regions was supported by increased levels of marketing in China and the US.
The spending $NZ200 million ($194 million) this year on marketing, more than 50%lf of that going towards ads in China.
They are not expecting any issues with its manufacturing partner Synlait, it has built up an inventory position as a buffer.
A few other positive stuff like exchange rate is benefiting A2, Cost has reduce due to lock-down... etc

The uncertainties which may affect A2 which mentioned in the article are:

U turn of Covid in China - But A2 is regarding as essential and the management has already equipped and ready geared up to deal with this.
Also already mention by the CEO that they are unable to estimate the timing and extent to which pantry stocking may unwind. But Mr Babidge is targeting an EBITDA margin "in the order of 30 per cent in the medium term

[whome]

Thanks longy

[see weed]

Thanks longy

Hi whome. Long time no see, looking forward to next st meeting. Sold a couple of thousand ATM yesterday for $20, purchased early Feb. for $14.45.

[see weed]

Pretty much guaranteed now for A2 to be included in ASX 50 with an outside chance of making into ASX 20 at next rebalance which is in June. It'll really be more safe haven then...

Hi sb9, where do you think sp will go when they include a2 to the ASX 50 or ASX 20?

[sb9]

Hi sb9, where do you think sp will go when they include a2 to the ASX 50 or ASX 20?

No crystal ball here, but my pick would be it'll consolidate around $22-$23 mark until FY20 results are announced late Aug. And rebalance now postponed until Jun and am sure index tracking funds would've worked out A2's inclusion in ASX 50 the least and would begin accumulation accordingly. It might be very different story if it gets shunted directly into ASX 20, which highly unlikely imo.

Majority of broker upgrades that came from AUS seem to in the range of $21-$22 (Aus) with some not that bullish.

[whome]

See weed, also looking forward to ST meeting and getting together. Been a while. Will need 10+ tables at Dr Rudi’s to keep our 2 metre distance! A2 has been good to you. Keep it going. Outlook still promising.

[see weed]

See weed, also looking forward to ST meeting and getting together. Been a while. Will need 10+ tables at Dr Rudi’s to keep our 2 metre distance! A2 has been good to you. Keep it going. Outlook still promising.

Yes they have been good on the whole, but have been stung a couple of times.