ATM - A2 Milk Corporation Limited

[Ggcc]

It is my guessing , but more than current Sp of course, it is also a safe havens stocks atm.

Fair call, but you mention cheap as chips......

[tomm]

Fair call, but you mention cheap as chips......

It's just mean buying with confident :-p

[Leftfield]

Pondering a few lurking questions I have about this product, and would appreciate the more passionate followers thoughts.

I note your many questions have gone unanswered. Unfortunately this A2 investor doesn't have the time to answer them, but here are some suggestions:

1.) Keith Woodfords Blogs on A1 and A2 milk trace the history and research behind this company v well.
2.) Read the commentary contained in the last 5 or so annual reports.

Once you have done more research I'm sure your questions/concerns will be answered.

In the meantime, only 1 more sleep until we get the latest FY20 Annual report from the company, so you could wait for that.

As always DYOR and take responsibility for your own decisions.

[SSB11]

I'm of the view the ATM bubble has to burst sooner or later.. its basically a product with not much scientific evidence behind it to support its claim. Its riding on public perception and strong marketing and that will only take it so far. Saying that, its going very well and being run very well, and the results should be positive leading to a share rise today. But with the expectation of the good results I think the price might be built in by the time it gets there. lets see. Do I need a hard hat for my first few statements?

[bull....]

I'm of the view the ATM bubble has to burst sooner or later.. its basically a product with not much scientific evidence behind it to support its claim. Its riding on public perception and strong marketing and that will only take it so far. Saying that, its going very well and being run very well, and the results should be positive leading to a share rise today. But with the expectation of the good results I think the price might be built in by the time it gets there. lets see. Do I need a hard hat for my first few statements?

no most stocks have bubble valuations

[petty]

Haha, great call re hard hats. Full PPE required for comments like that.

But seriously your views are fair but I would counter that,

a) Don't underestimate the power of a differentiated product with great marketing. I agree re science but this has never been about science. Its been about perception and great marketing which I dont see abating. Some examples of average products with great marketing which has taken them very far include (Coke, Redbull, Louis V (plus heaps of others)).
b) The real risk to ATM is tradewars. Having a single market for its products poses significant risk. As battle lines are drawn on the US/CN tradewar it will be interesting to see how this impacts ATM fortunes. Chinese can stay hungry longer than ATM can stay solvent.
c) Counter to this argument (b) is that ATM and SML have significant CN ownership levels which should protect them slightly from an tradewar fallout.

[whome]

Good post Petty. When something like 30% of humans have digestive problems with cow’s milk it’s a ‘suck it and see’ situation or rather drink it and see. The A2 market advantage is the trust in the brand when marketing to a huge chinese IF market that destroyed their own local brands with the melamine scandals. I see A2 as the NZ version of Coke. Great marketing and 1st mover advantage around a simple message ‘try it and see if it works for you’. Clinical trials etc. leads to patents that then cost the earth to defend. I like the keep it simple approach - keep the formula and the mystique locked in a vault - just like Coke!

[silverblizzard888]

I'm of the view the ATM bubble has to burst sooner or later.. its basically a product with not much scientific evidence behind it to support its claim. Its riding on public perception and strong marketing and that will only take it so far. Saying that, its going very well and being run very well, and the results should be positive leading to a share rise today. But with the expectation of the good results I think the price might be built in by the time it gets there. lets see. Do I need a hard hat for my first few statements?

Replace the word ATM with religion and you have the same

[whome]

Right on Silverblizzard..LOL!!

[Zaphod]

I'm of the view the ATM bubble has to burst sooner or later.. its basically a product with not much scientific evidence behind it to support its claim. Its riding on public perception and strong marketing and that will only take it so far. Saying that, its going very well and being run very well, and the results should be positive leading to a share rise today. But with the expectation of the good results I think the price might be built in by the time it gets there. lets see. Do I need a hard hat for my first few statements?

I completely agree. As I wrote earlier: "the single best thing for this company right now, is a raft of large scale peer-reviewed studies showing that the A2 protein has a positive effect on general health, let alone on those with symptoms directly cause by the A1 protein. Yes, I know.... Flame away! I have my fire-proof suit on already."

As you say, at the moment, this product is being driven by marketing and hype, which concerns me in with a mid to long term perspective.