ATM - A2 Milk Corporation Limited

[carrom74]

Quite conspicuous about the timing of the news article… on a lazy Sunday afternoon. Why would they?. May be the media knows something we don’t…

[alokdhir]

I think this is largely shorts being squeezed out based on the price action in the first hour. I am surprised it had the momentum and closed near the highs, which may mean longer term shorts are continuously covering. If big money is serious about this they will gap it up on open tomorrow and really crush them. Let's see what happens.

That may happen after Aussy opening ....NZX will let u buy in 6.90 -7.10 range ....

[alokdhir]

Takeover at 11 bucks next week maybe

You need to read this thread …or the papers ….never mind ….get in now …heaps more to be made

Buddy has advised to get in ....thats interesting ...." Heaps to be made "

[alokdhir]

Head of private wealth research at Craigs Investment Partners, Mark Lister said it was just one newspaper reporting “what looks like an off-the-cuff comment” but it was a realistic possibility.
A2 Milk’s share price is very low, but it holds a considerable amount of cash on its balance sheet and retains a strong brand.
“The market, to a degree, believes where there is smoke there is fire. There were also probably a lot of people shorting the stock who don't want to get burned if there is truth to it,” he told BusinessDesk.
Investors who have shorted a stock eventually have to buy the stock to complete the trade, which sometimes leaves them scrambling to buy if a share price starts to climb.
Other investors may be buying back into the stock to “keep a toe in the water” having sold positions earlier in the stock’s decline. A total of 1.7m shares worth $12m were traded.
“It could all fizzle out and there could be nothing to it – but if I was a holder I’d be sitting tight and biding my time to see if there was some truth to it,” Lister said.

Views of Lister are much more fairer then that of Jarden's analyst's

[Sideshow Bob]

From Business Desk daily email:

A2 shares spike as Aussie media reheats Nestle rumours

A report in the Australian media ramping up speculation about a takeover of the A2 Milk company by Swiss-based global food giant Nestle saw the dual-listed dairy company’s share price jump in NZX trading today.
However, local analysts are sceptical about the suggestion, which appears to rest primarily on the fact that the A2 share price has collapsed over the last year.

[Balance]

From Business Desk daily email:

A2 shares spike as Aussie media reheats Nestle rumours

A report in the Australian media ramping up speculation about a takeover of the A2 Milk company by Swiss-based global food giant Nestle saw the dual-listed dairy company’s share price jump in NZX trading today.
However, local analysts are sceptical about the suggestion, which appears to rest primarily on the fact that the A2 share price has collapsed over the last year.

A rehash of the same takeover rumors The Australian put out in April this year :

https://www.theaustralian.com.au/sub...s&mode=premium

[Maxtrade]

A rehash of the same takeover rumors The Australian put out in April this year :

https://www.theaustralian.com.au/sub...s&mode=premium

Yeah hard to know. Really high volumes would indicate some validity in the statement. But then again many factors that may not eventuate. Could be nothing more than a reporter's hope or opinion with The Australian. Pretty easy for media to play with sharemarkets it seams. Might be a squeeze on shorts followed by a heavy price reduction to follow. Then potentially a consideration for a buyout. That would be more in line with corporate mentality if a buy out was actually going to be actioned.

The pitfalls and difficulties facing ATM/ China have not instantly been resolved or gone away. So the attractiveness of ATM would be in debate to Nestle. Especially when they are struggling in this area themselves. So to invest in ATM and be deeper into an uncertain market would be a pretty risky decision at this time.

Anyone having anything more solid than The Australian sourced rumour. Seems many investors are jumping on that band wagon all of a sudden. FOMO maybe? or Insiders? But maybe yesterdays rally will take a heavy reversal once the initial shorts stop bailing out from fear of this rumour.

[Maxtrade]

Also from memory wasn't it Jarden or Craigs Analysts who were very recently stating fair value for SP to be $6.10 NZD

[Sideshow Bob]

Also from memory wasn't it Jarden or Craigs Analysts who were very recently stating fair value for SP to be $6.10 NZD

Just had a look, and Craigs have a target price of $7.78.

[Ggcc]

I guess there must be something in this rumour that has come out. Either that, or lots of shorts covering in panic mode