ATM - A2 Milk Corporation Limited

[Xerof]

Is anyone out there still holding atm? I feel like been left holding the calf. This is starting to feel like Snakk Media. And such a positive agm. Has anyone moooooved on lately?

I milked a small trade, selling my holding in the auction on Tuesday close at 65, when it became apparent the seller was unmoooooved.

But 'I'll be back'

[blobbles]

I bought in a modest position following the ASM and am looking at a small loss at the moment but I am happy. 38% yoy increase in Aussie is a really big deal and funds a lot of future growth. Patient investors will be rewarded.

Rogers onto it. An already profitable company whose spare cash is being used to enter new markets. Whose current main market has gone from 20% growth to 38%. Whose market value is <4x revenue and getting lower and lower all the time (SP going down while sales go up). It's the sort of investment I have wet dreams about as an investor. Don't let the short term sell down fool you, a major holder is in control of the SP at the moment, keeping the price ~60c.

I am picking the UK market to take off next (next year or two) and if that happens to the same degree as Australia... You will be cursing yourself for selling now. Patience will be rewarded.

Then again if you see an opportunity to make money somewhere else over the next 2-3 months, you *may* be able to buy back in at this price later if this seller is still in control.

[see weed]

Good to hear there is still st feeding the calf. If it goes down any further I'll also be in like flynn.

[Beagle]

Yeah if they go much lower I might have to snapiti up some more, aka double-down

[andrewm]

Holding here too seaweed, no hurry to sell and expecting great things.

[NT001]

Just noticed some interesting features in the list of top shareholders in ATM.

In the last list I got from my broker, dated 7 November, there was no mention high up of Geoff Babidge, but he’s listed here as having 10 million shares according to 4-Traders.

So the top of the list (those with over 1% stakes) reads:

Name Shares % Freedom Foods Group Ltd. 117,878,629 17.9% Milford Asset Management Ltd. 97,877,776 14.8% Clifford James Cook 57,558,701 8.72% Guardians of New Zealand Superannuation 41,344,622 6.26% AMP Capital Investors (New Zealand) Ltd. 37,022,083 5.61% Equity Casa Grande LLC 30,000,000 4.55% Accident Compensation Corp. 24,356,038 3.69% Geoffrey Howard Babidge 10,000,000 1.52% Gregory Paul Hinton 8,101,872 1.23% Ulrike Mclachlan 7,135,163 1.08%

Maybe Babidge was/is a custodial client of Central Securities Depository which manages 48% of ATM shares but does not feature here. But does anyone know anything about Equity Casa Grande LLC? It’s a Delaware registered company about four years old.

Cliff Cook is of course ATM chairman and the guy who rescued the company with funds received when he sold Metlifecare, and has since put it on the road to success. Gregory Hinton is a former director who acquired 11m shares in 2011 at 28c each in some in-company deal. Ulrike McLachlan is the widow of Dr Corran McLachlan, the scientific genius behind A1-A2, who died of cancer in 2003 just a few weeks after the company’s financial backer Howard Patterson died suddenly, leaving the company suddenly somewhat rudderless for a while.

[BFG]

Were Casa on the last shareholder list? Says a lot being a Delaware based company (tax haven) and most likely a SPV...

[NT001]

Were Casa on the last shareholder list? Says a lot being a Delaware based company (tax haven) and most likely a SPV...

They weren't on my last list, but a lot of shareholders were concealed in the Central Securities Depository list, including presumably Milford. So I don't know how long Casa has been a shareholder. I was hoping someone might help on that. Yes Delaware registration is often (but not necessarily) a bit of a red flag.

[blobbles]

38% revenue growth puts us at what? $150m revenue? Not bad... At current price that's only price to revenue of 2.6... And that doesn't include sales to other markets. If 20m revenue happens in the first year in the US/UK/China... That puts us at $170m, revenue multiple of 2.3.

Just for comparison DIL is currently at 5.4 with a diminishing growth rate. Admittedly they have a large chunk of cash that they can't seem to use for growth, whereas ATM pretty much fully use their profits for growth. Rather be with the increasingly profitable company who can use all new profit growth for sales growth.

[MAC]

38% revenue growth puts us at what? $150m revenue? Not bad... At current price that's only price to revenue of 2.6... And that doesn't include sales to other markets. If 20m revenue happens in the first year in the US/UK/China... That puts us at $170m, revenue multiple of 2.3.

Just for comparison DIL is currently at 5.4 with a diminishing growth rate. Admittedly they have a large chunk of cash that they can't seem to use for growth, whereas ATM pretty much fully use their profits for growth. Rather be with the increasingly profitable company who can use all new profit growth for sales growth.

Seems things may kick on a bit quicker in China now too;

“a2MC is confident that the original market entry plan for infant formula into China can be attained and significant further growth achieved as a result of these changes”

https://www.nzx.com/files/attachments/204209.pdf