ATM - A2 Milk Corporation Limited

[Gregnz]

Is that you couta1, 170,000 at $16.25c .

It disappeared as quickly as it was added. I do often wonder why someone would place a large order at pre open or pre close and push the price well beyond the range that it’s been trading at. Better just to soak up what the weak hands dump during the day and pay less. I think that 170,000 @ $16.25 pushed the pre open price to over $16.

[Gregnz]

With the failure of the US stimulus talks there may well be more buying opportunities this week.

For a long term view of ATM, I recently discovered this May 2020 blog "A2 the 2200% monster next door". Enjoy.

Also worth watching, this YouTube video about A2 milk, it’s basically similar info to that monster next door article in video form:

https://youtu.be/Guyfo_snyOw

[dobby41]

With the failure of the US stimulus talks there may well be more buying opportunities this week.

For a long term view of ATM, I recently discovered this May 2020 blog "A2 the 2200% monster next door". Enjoy.

One bit that jumped out of that blog that I've been thinking about lately is this
"What really set a2 Milk apart is that it isn’t really a food producer at all: A2 Milk is a marketing business. All of a2 Milk’s products are produced by external suppliers that the company holds a close relationship with"
Their low capital model has done them proud but how does the model fundamentally change as they look towards production themselves?

[Gregnz]

I see UBS are a new substantial holder of A2 on the ASX

https://www.asx.com.au/asxpdf/202010...2z6trj7px5.pdf

[couta1]

Is that you couta1, 170,000 at $16.25c ......3 minutes later they gone.

No but my holding size is only 1 thou odd less than that but heavily underwater. PS-Bullish kiwi open once again.

[Leftfield]

Also worth watching, this YouTube video about A2 milk, it’s basically similar info to that monster next door article in video form:

https://youtu.be/Guyfo_snyOw

Thanks Gregnz..... an interesting watch (even if the pic of founder Howard Paterson was incorrectly shown as current CEO GB.)

Happy to have been a holder since 2012.

[couta1]

I see UBS are a new substantial holder of A2 on the ASX

https://www.asx.com.au/asxpdf/202010...2z6trj7px5.pdf

New for the umpteenth time, these guys are notorious manipulators and game players.

[Gregnz]

New for the umpteenth time, these guys are notorious manipulators and game players.

I suspected that. But given the price level they have bought in at, likely they will be trying to push the share price higher?
Could be a good thing to deter our Ozzie shorting foes

[couta1]

I suspected that. But given the price level they have bought in at, likely they will be trying to push the share price higher?

Yep, they will ramp the price up by upramping at some point with a new price target and bullish report, although I reckon they are on the money more than most of the others with their current target of $22.50.

[Leftfield]

One bit that jumped out of that blog that I've been thinking about lately is this
"What really set a2 Milk apart is that it isn’t really a food producer at all: A2 Milk is a marketing business. All of a2 Milk’s products are produced by external suppliers that the company holds a close relationship with"
Their low capital model has done them proud but how does the model fundamentally change as they look towards production themselves?

Quick answer is that their low capital model changes a little.... but not fundamentally. They will retain the bulk of their cash.

In addition, in these low interest times, there may be better opportunities in ATM having some of their cash earning them increased margins and production flexibility/security versus nil interest in a bank. Also the Mataura plant has strong Chinese ownership connections that may strengthen ATM's leverage in that market.

Lastly it is not a done deal yet. ATM are quite rightly taking their time (from memory they have almost 12 months to finalise the deal,) and the final details may yet see the actual running/management of the plant 'contracted out' (say) to SML.