ATM - A2 Milk Corporation Limited

[Maxtrade]

Citi believes there could be more bad news looming for A2 Milk. The broker is basing this on the fact that the company has yet to announce its performance rights for its CEO. It feels if things were going better, this would have now been announced.

Citi feels more bad news could weigh heavily on the A2 Milk share price. However, it also suspects that further share price weakness would make the company vulnerable to a takeover in or around the $7.00 per share mark. This is based on comparable acquisition multiples.

And judging by the company’s share price performance today, it appears as though some investors are focusing more on the potential takeover approach instead of the suspected continued underperformance of the company.

What’s next?

Time will tell how A2 Milk is actually performing. However, the good news is that investors won’t need to wait overly long to find out. The company is scheduled to hold its annual general meeting in approximately seven weeks.

All eyes will certainly be on A2 Milk shares that day.

Thanks Balance.
Not a lot of upside potential even if had a $7 takeover. Risk versus reward doesn't look attractive. Surprised anyone would be buying into it for such a small possible upside buyout return, especially with so many if's and risk much larger on the loss side.

[dreamcatcher]

Thanks Balance.
Not a lot of upside potential even if had a $7 takeover. Risk versus reward doesn't look attractive. Surprised anyone would be buying into it for such a small possible upside buyout return, especially with so many if's and risk much larger on the loss side.

Prefer to use darts then Citi's info much more accurate

[Baa_Baa]

While A2 Milk has pivoted to boost ecommerce and direct retail sales channels of Infant Formula into China, and we are yet to see the results of this, these by themselves will be unlikely to ever replace the retail daigou or wholesale daigou channels that were largely shut down by Australian covid border lockdowns.

This week two items of interest emerged that point to potential for the diagou channels out of Australia to re-open in the near future;

- Australian Therapeutic Goods Administration approval of Sinovac (one of two China developed vaccines) for travellers into Australia.

"More than 80,000 Chinese international students are set to be allowed back into Australia when international borders reopen after the country’s top drug regulator recommended approving the Sinovac vaccine for travellers."

- Australia bringing forward border opening to November, from previously December, based on targeted vaccination percentages of the population being reached and vaccination passports.

"The federal government will also work with all jurisdictions to increase and then remove the caps on international arrivals after it began issuing international COVID-19 vaccination certificates."

These developments may account for some of the renewed enthusiasm in A2M/ATM share prices over the past couple of weeks.

ATM share price put in an almost perfect double bottom at $5.39 on 21/9 and has since risen strongly to close up 22.3% at $6.60 Friday closing price.

[aperitif]

https://compounderfund.com/compounde...stment-thesis/

[carrom74]

ATM share price put in an almost perfect double bottom at $5.39 on 21/9 and has since risen strongly to close up 22.3% at $6.60 Friday closing price.[/QUOTE]

One of the most picked stocks in Jan 2021(share trader picks)....It would be interesting what the company has to tell on Oct 27th...(Investor day).So many issues which ATM cannot control though..

1.Geopolitical issues(AUKUS) and (QUAD)
2."Ever exploding" Evergrande saga
3.Regulatory crackdown on chinese companies(IT and education)
4.samr registration coming up(2022 or 23?)

But with Australia opening up sooner than expected...We may see uptick on daigous...fingers crossed.

[dreamcatcher]

Merck’s new Covid pill could affect market action the week of Oct. 4

https://www.cnbc.com/video/2021/10/01/jim-cramer-predicts-how-mercks-new-covid-pill-could-affect-the-market.html

[dobby41]

Merck’s new Covid pill could affect market action the week of Oct. 4

https://www.cnbc.com/video/2021/10/01/jim-cramer-predicts-how-mercks-new-covid-pill-could-affect-the-market.html

Wrong thread?
Affects ATM how?

[McPussPuss]

Anything that may speed up the opening of borders (Australia & China) will affect the bottom line as the company and most analysts are being reasonably conservative by discounting any recovery in the daigou channel that was disproportionately relied upon for revenue growth.

[Waltzing]

China building a lot of 5 thousand bed MIQ for all incoming visitors.
If china vaccine is not up to the job then an open border is going to be a very slow border to get in and out off.

However there are market channel opening like KiwiSo. It just shows how deep the relationship between NZ and China has been build up over more than a century together.

The ATM game plan will hopefully swing back to one of a success story.

[xp04]

Citi believes there could be more bad news looming for A2 Milk. The broker is basing this on the fact that the company has yet to announce its performance rights for its CEO. It feels if things were going better, this would have now been announced.

Citi feels more bad news could weigh heavily on the A2 Milk share price. However, it also suspects that further share price weakness would make the company vulnerable to a takeover in or around the $7.00 per share mark. This is based on comparable acquisition multiples.

And judging by the company’s share price performance today, it appears as though some investors are focusing more on the potential takeover approach instead of the suspected continued underperformance of the company.

What’s next?

Time will tell how A2 Milk is actually performing. However, the good news is that investors won’t need to wait overly long to find out. The company is scheduled to hold its annual general meeting in approximately seven weeks.

All eyes will certainly be on A2 Milk shares that day.

Is there any reason you forgot to mention that your beloved citi has issued "buy" rating and AU$7.20 price target?