ATM - A2 Milk Corporation Limited

[Leemsip]

My 2c is that it will be something which will require some detailed modelling inside the company and figuring out what a changing market looks like for margins etc:
- diagou channel being blocked
- china announcing it will look to diversify IF sourcing away from Oz / NZ

Normal market erosion of gross margin, or a strong dollar, wouldn't require such a long halt.

Other possibilities are:
- some sort of recall of product due to harmful XXX discovered
- sharetrader members too heavily invested and fate intervenes etc

[Gregnz]

My 2c is that it will be something which will require some detailed modelling inside the company and figuring out what a changing market looks like for margins etc:
- diagou channel being blocked
- china announcing it will look to diversify IF sourcing away from Oz / NZ

Normal market erosion of gross margin, or a strong dollar, wouldn't require such a long halt.

Other possibilities are:
- some sort of recall of product due to harmful XXX discovered
- sharetrader members too heavily invested and fate intervenes etc

A product recall would have obviously resulted in an announcement from Synlait, which hasn’t happened. As you know Synlait manufacture for A2

[dobby41]

We tried to warn them mate....many times.

How many times do you have to say 'I told you so' before it becomes harping and quite unseemly?

[Leemsip]

A product recall would have obviously resulted in an announcement from Synlait, which hasn’t happened. As you know Synlait manufacture for A2

Agree, good call.

[Gregnz]

How many times do you have to say 'I told you so' before it becomes harping and quite unseemly?

The same people who say “I told you so” are the same people who just disappear when the share price increases, because they can’t validate their arguments.

[Cyclical]

All very mysterious... I remember being shouted out the room back in August on results day... share price back then was over $20... might be half of that when trading resumes.

Be interesting won't it. Depending on the news and what the likely implications could mean for future sales, a sharp SP drop may represent good buying in what looks like a generally heady market.

[bull....]

shorters might be popping the champange on monday

[tango]

My educated guess would be their guidance didnt factor the dollar being on such a bull tear and it will result in a material downgrade.

Makes sense but a trading halt?

I confess I didn’t factor in the NZD USD exchange rate. I have USD that I want to bring back to New Zealand and it’s not making me happy. I brought back $20K at $1.52 but now it’s $1.41 which makes for a big loss on the remainder. I can only imagine the effect on a company the size of a2

[Leemsip]

If it is something China related we will have an interesting dilemma (also facing this with TWE on the asx).

Great company shut out of its major market for who knows how long. Much lower margins in other countries.

Hard to buy in these conditions until clarity is acheived.

[Leemsip]

Not going to be the exchange rate. Announcement says "we have become aware"