ATM - A2 Milk Corporation Limited

[NZSilver]

Where has mr big seller gone?

Bids
Quantity	No.	Price
96,057	6	61
76,574	5	60
119,905	9	59
143,563	6	58

[psychic]

Where has mr big seller gone?

Bids
Quantity	No.	Price
96,057	6	61
76,574	5	60
119,905	9	59
143,563	6	58

Lol. In the "ASKS" col?
But agree, maybe has moved up a tad, a rest maybe as bids reassemble. That 50K at .62 has a ring to it, lets see if it is reloaded...

[NZSilver]

I was thinking the same thing but often they have a rest day and you can be sure it is a monday or friday

wish I had rest days on M & F

[NZSilver]

goes to show, once they stop selling SP should appreciate

[Harrie]

Well if the AMP boys are dripping in 50k of shares a day could take a couple of years to get rid of the lot, if that is what they are intending. Lets wait and see if another SSH declaration pops up in the next week or so. By that time they could have dropped at least another 1%, however that is only around say 370,000 and a lot more than that have traded since their last SSH. If not then there is another big seller in the market

[Snoopy]

However, from the FY14 report, the ATM guidance for the UK market looks very good in that context;

“We are targeting cash breakeven on a monthly basis during the second half FY16”

Last year ATM burned through $4m in cash, while using Australian cashflow to support entry into the UK market. The cash balance decreased by $4m. They expect two more years before this turns around, so in rough figures another $8m. ATM will probably need to spend that much in the USA too over that time, another $8m. Two lots of $8m will exhaust the cash balance.

So the way I see it ATM is now on a knife edge. If anything goes wrong with their business plan from here, it's all over. Not for A2 milk itself of course. No doubt some canny player will rescue the A2 IP from the ashes and do very well. But existing shareholders will no longer be part of that picture. They will have lost their capital and get nothing. This doesn't look like an exciting investment prospect to me.

SNOOPY

[MAC]

Well after a year of knocking, some might well think that ignorance is bliss, but personally I've no comment to make on the matter

A really very good investment I would say, having been presented with an opportunity to buy out ones 50/50 JV partner simply because they have been taken over by a third party, and for as little cash as they did.

They're probably still rubbing their hands together at ATM HQ.

All that good establishment and kick starting underway, and now going forward ATM will reap 100% of profits.

[NT001]

Existing shareholders will no longer be part of the picture. They will have lost their capital and get nothing. This doesn't look like an exciting investment prospect to me.SNOOPY

Ok Snoopy - bye bye, sorry to lose you. But I think you overlook that revenues are actually increasing, the company is not just living off past earnings. And if more cash is needed there'll be shareholders happy to take up a rights issue, I would say. Me for one. That could happen when the company launches into the US, although capital costs for that operation won't be huge and are already budgeted for. And all this talk about ATM's IP being close to running out is thoroughly alarmist. If you think the company is on a knife edge, that's nothing to where it was a few years ago. Since then under Cliff Cook, it seems to me to have been very prudently run, nothing risky, and with a clear path towards higher profitability in well-chosen markets and greater global consumer acceptance.

[blobbles]

Last year ATM burned through $4m in cash, while using Australian cashflow to support entry into the UK market. The cash balance decreased by $4m. They expect two more years before this turns around, so in rough figures another $8m. ATM will probably need to spend that much in the USA too over that time, another $8m. Two lots of $8m will exhaust the cash balance.

So the way I see it ATM is now on a knife edge. If anything goes wrong with their business plan from here, it's all over. Not for A2 milk itself of course. No doubt some canny player will rescue the A2 IP from the ashes and do very well. But existing shareholders will no longer be part of that picture. They will have lost their capital and get nothing. This doesn't look like an exciting investment prospect to me.

SNOOPY

Please keep up these excellent alarmist posts snoopy, it tells me exactly where to put my money!

[see weed]

a2 Find......Countdown Onehunga has 12 bottles at 9.30pm.