ATM - A2 Milk Corporation Limited

[Harrie]

Would'nt bank on it blobbles, whoever the seller is I think they have lost faith and are looking at cutting their losses IMO. If it is AMP they have a lot more to go!
Of more importance though is who is picking them up?

[Jasemc]

I agree. Who is buying is more of a interest. No ssh notice so i wonder.

[ziggy415]

I agree. Who is buying is more of a interest. No ssh notice so i wonder.

AMP have said they are restructuring and changeing their funds to passive funds...i guess A2 not in nzx 50 so not sure what level of A2 they will keep..if any

[Harrie]

There is a difference between passive and index funds. Passive means that they are not going to manage the portfolio actively but rather strategically.
If they were going to run it as more of an "index fund" then they still have about 35 million shares odd to get rid of because ATM would not feature in the top 50 funds by capitalisation. My take on this is that they will keep ATM for the long term, but just what % is open to speculation.

[NT001]

Ziggy and Harrie

When I checked a while back ATM was not only in the NZX 50 (which it still is) but was actually in the top 30 by market capitalisation. It's cap ranking will have dropped since then, especially after the state-owned energy floats, but it's well up there. Or am I missing something? It seems to me that ATM has to be part of a lot of holdings.

[Harrie]

Ziggy and Harrie

When I checked a while back ATM was not only in the NZX 50 (which it still is) but was actually in the top 30 by market capitalisation. It's cap ranking will have dropped since then, especially after the state-owned energy floats, but it's well up there. Or am I missing something? It seems to me that ATM has to be part of a lot of holdings.

That is correct NT, it is in the top 50 but is at No 50 but that is based on 58c, using the latest info I can see.
Having said that only an index fund may choose to use it although "index" funds do not necessarily follow the index faithfully. Even so at number 50 the exposure would be stuff all to a raspberry, however better at No 50 with exposure to all index funds than not at all!
If AMP is being "strategic" rather than "active" then the index following is not really relevant to them. Its just a matter of how strategic they want to be with ATM.

[NT001]

Thanks Harrie

Interesting that ATM is just clinging to inclusion in the NZX50. I wonder if the buyers and sellers in the 58-60c range may have been managing the SP partly to just keep it within the Top50. They've adhered pretty religiously to that level. Even though not all the index funds stick firmly to the index as you point out, could there possibly be benefits to some portfolio managers in not letting ATM drop out of the top 50?

[Harrie]

Could be a bit of a problem for ATM investors if fund managers religiously followed the index method on the NZX50 NT. At 58c its on the cusp of moving off the NZX50 index. With something like ATM where a few cents could be the difference between retaining or eliminating the stock in an index following fund, with all the transaction and record keeping this would require, its hard to say what the reaction would be. I'm not too sure we should be overly worried about it though as if this did happen, some positve forcasting at the AGM could easily move it back on to the NZX50 index, all it does is increase the volatility of the price depending on how much weight the index funds have in the marketplace.

[NT001]

Here's a bit of good news to cheer those who have been worried that nothing much is happening in Britain to get A2 Milk and its message out to the public there.

http://www.foodbev.com/news/a2-milk-...e#.VGMcD2dqPsw

[MAC]

Here's a bit of good news to cheer those who have been worried that nothing much is happening in Britain to get A2 Milk and its message out to the public there.

http://www.foodbev.com/news/a2-milk-...e#.VGMcD2dqPsw

Hmmm, expansion to a ‘nationwide’ Sainsbury's listing is really very positive news in itself.

“First to reveal the brand repositioning and new-look 1-litre bottle in-store is Sainsbury's, having secured a new nationwide listing”.

And crumbs, no holds barred marketing, easy to see where that £3m will go.

“The multi-channel trade and marketing activity will include shopper marketing, PR, social media, digital activation and a website relaunch supported by high-profile media doctor Dr Hilary Jones. A disruptive 'Welcome Back to Milk' TV, radio and digital content campaign will launch in January 2015”.