Honestly I'm on the fence as to whether this acquisition is a good move. Manufacturing is a VERY different skillset than what they currently have and adds a bunch of complexity when the business is already in a mess. Really critical they have the right people leading it or it won't go well.
Honestly I'm on the fence as to whether this acquisition is a good move. Manufacturing is a VERY different skillset than what they currently have and adds a bunch of complexity when the business is already in a mess. Really critical they have the right people leading it or it won't go well.
I was a fan of their 'capital light' approach. However, while not without risks, this acquisition ticks a lot of boxes for me. Their statement covers the key benefits.
The proposed acquisition will provide the opportunity for a2MC to participate in nutritional products manufacturing, provides supplier and geographic diversification, and strengthens our relationship with key partners in China.
Comes a time when we have to trust managers and directors to do their stuff and you can bet Bortolussi went over it carefully before he put his name to it.
Interesting - so, how exactly does this acquisition fix the problems which brought them into the current doldrums? Their problem was never supply or manufacturing, but it was sales and marketing. This acquisition just adds to their current problems a totally new field of issues and brings them closer to the problems they inflicted on Synlait.
Originally Posted by JohnnyTheHorse
Honestly I'm on the fence as to whether this acquisition is a good move. Manufacturing is a VERY different skillset than what they currently have and adds a bunch of complexity when the business is already in a mess. Really critical they have the right people leading it or it won't go well.
Absolutely agree - and as indicated above, given their problems are in sales and marketing it is quite mindboggling that they now invest into the areas where they don't have issues in.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Honestly I'm on the fence as to whether this acquisition is a good move. Manufacturing is a VERY different skillset than what they currently have and adds a bunch of complexity when the business is already in a mess. Really critical they have the right people leading it or it won't go well.
JTH,
So far you are exactly on point. Your chart that you predicted is following exactly how you saw it playing out.
Thank you for your guidance and information. I suspect from what we are now seeing today, which is in line with your chart prediction, there will be a turnaround at 7.25 NZD (6.75 AUD), followed by a steady decline. (7.25 NZD is right on 0.5 on the fibonacci for the turn around). Now I understand what you were referring to, with seeing where the next drop will bottom out to see if the trough is formed then.
Am I understanding correctly now?
However if pushes past this 6.75AUD level then would that indicate the trough was as I had indicated in May?
There's room for some cautious optimism imo.
The ATM chart log scale daily (and A2M) has over 6 weeks now of a rising SP within a nice rising channel pattern, that's 29% or $1.59 gain off the low already.
The encouraging recent TA is the repeated back tests of 21EMA, then Friday boost up through and close above the 50EMA within the price gap from the fourth down grade.
100EMA at $8.12 is next short term target (50% up from the low) - whose going to wait that long to get a piece of the action.
That said, this is all still within a truely ugly overall down trend and there are more resistance levels, gaps and MA's above here than you can shake a stick at.
Yes lots of resistances...but short term there is a gap vacumm being filled as I type. This vacumm theory suggests a rapid rise from $7.00 to 7.50 and it seems to be happening now. that suggests technically (TA chart) the primary downtrend line (green) has been broken...The DOW theory is lagging and suggests the downtrend is still going and will not end until we see a higher high and a higher low pricing.
This primary broadening downtrend channel (TA chart) ends when the price is above $7.00. The primary trend line is the last major confirmation as many major indicators have already triggered buy signals...
Today the primary trend line broke... Disc: purchased small parcels of ATM a few minutes ago at $7.24.
Thank you for your guidance and information. I suspect from what we are now seeing today, which is in line with your chart prediction, there will be a turnaround at 7.25 NZD (6.75 AUD), followed by a steady decline. (7.25 NZD is right on 0.5 on the fibonacci for the turn around). Now I understand what you were referring to, with seeing where the next drop will bottom out to see if the trough is formed then.
Am I understanding correctly now?
However if pushes past this 6.75AUD level then would that indicate the trough was as I had indicated in May?
Thanks again
That AU$6.80-7.00 range is the key area to now be watching for a reversal. From that reversal though the bias will now be looking for a weekly higher lower and weekly trend change. If it breaks through $7.00 the shorts could be under some real pressure and we could see some interesting moves.
Still not interested in establishing a longer swing position until we get a weekly higher low to ensure I have a close stop (although I am day trading this aggressively!)
Originally Posted by Left field
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