ATM - A2 Milk Corporation Limited

[Balance]

https://www.fool.com.au/2021/10/27/a...stor-update-2/

Copied from Beagle’s posting?

‘However, any hopes that these plans would return A2 Milk to previous levels of explosive earnings growth appear to have been dismissed by management.’

As a result, management warned that “because of these uncertainties and the range of potential outcomes, it is very difficult to define future state targets and when they will be achieved – the path is also unlikely to be linear.”

And if there’s one thing that market hates, it is uncertainty. Which goes some way to explaining why the A2 Milk share price is deep in the red today.

[bull....]

last low point was 6.11 on the 12th there about of oct so we should test there soon ..... come on boys hammertime

[Balance]

So went up on the back of very good numbers from Bubs and then, Danone. I am simply making the observation that ATM has not produced any numbers and you can see the market reaction.

I was neutral waiting on the strategy reset all along but with the sp spiking higher in the last 2 weeks, thought there was a golden opportunity for ATM to update the market with good numbers.

Not only did ATM not update with good numbers, it did not disclose any numbers at all! Inexcusable !

Now I am indeed with Beagle that ATM is an uninvestable stock until sp is around $3.00 on current settings.

Surely it cannot be that difficult for ATM to properly update the market? No wonder the sp is taking a hammering and it's just gone below A$6.00.

Compare & contrast :

BUBS update 2 weeks ago :

Bubs Australia’s (BUB) gross revenue for the September quarter has increased 96 per cent year-on-year to $18.5 million.

Bubs’ infant formula segment saw its gross revenue increase 124 per cent and the adult goat milk powder segment’s gross revenue grew 100 per cent year-on-year.

Domestic sales contributed 23 per cent of quarterly sales and declined 13 per cent, due to a discontinued revenue stream from a business-to-business customer.

ATM today :

Sales of English label product in the first quarter of this financial year were lower than the same period last year, but “significantly up” on the fourth quarter, when sales were constrained to reduce inventory that had built up.

While sales of English label product were expected to be down in the first half compared with the same period last year, they were expected to be ahead of expectations.

In contrast, sales of China label product in the first quarter were lower than expected, and expected to be “significantly down” in the first half.'

[winner69]

Surely it cannot be that difficult for ATM to properly update the market? No wonder the sp is taking a hammering and it's just gone below A$6.00.

Compare & contrast :

BUBS update 2 weeks ago :

Bubs Australia’s (BUB) gross revenue for the September quarter has increased 96 per cent year-on-year to $18.5 million.

Bubs’ infant formula segment saw its gross revenue increase 124 per cent and the adult goat milk powder segment’s gross revenue grew 100 per cent year-on-year.

Domestic sales contributed 23 per cent of quarterly sales and declined 13 per cent, due to a discontinued revenue stream from a business-to-business customer.

ATM today :

Sales of English label product in the first quarter of this financial year were lower than the same period last year, but “significantly up” on the fourth quarter, when sales were constrained to reduce inventory that had built up.

While sales of English label product were expected to be down in the first half compared with the same period last year, they were expected to be ahead of expectations.

In contrast, sales of China label product in the first quarter were lower than expected, and expected to be “significantly down” in the first half.'

Even Comvita gave the market some Q1 numbers …and full year guidance

Whoever advising this David guy not doing a good job …..or if David doing it all himself he has badly misread what the market was looking for.

[winner69]

Line on chart seems to be below the 50MA and the 200MA

That’s not too good

[Master98]

"Past performance is not indicative of future performance and no guarantee of future returns is implied or given."
good old days seems way behind us.

[Lease]

Understandable but one would have thought that at least DB would do a proper update with how Q122 have gone? The opaque 'on the one hand but on the other hand' sales commentary leaves the market uninformed and that has been the story of ATM since August 2020.

When you have shining performance, you will speak loud and clear. But if not, you reduce your volume so audience can't hear clearly. This is human nature!

Obviously A2 is not up to perform. Need to give them more time.

[couta1]

Even Comvita gave the market some Q1 numbers …and full year guidance

Whoever advising this David guy not doing a good job …..or if David doing it all himself he has badly misread what the market was looking for.

Or perhaps he's doing it intentionally aka T/O offer still incoming?

[Beagle]

Yeap, both from a fundamental and technical perspective this looks very grim. Many years of stiff challenges ahead. Unlikely to see $10 again this decade in my opinion.

[nztx]

Yeap, both from a fundamental and technical perspective this looks very grim. Many years of stiff challenges ahead. Unlikely to see $10 again this decade in my opinion.

Geeze .. Investor Day looks like it went well .. kind of like a cup of cold tea