ATM - A2 Milk Corporation Limited

[winner69]

Fair enough,

What did you decide the shareprice slide was down to? Purely just the market revaluing to fair value in your opinion?

Cheers

Think the answer is yes .....just staying around fair value. No maul action here.

Pointed this thread out to Balance's mates at the LSE .....maybe a bit of raw material into a study on cognitive dissonance

[Harrie]

Think the answer is yes .....just staying around fair value. No maul action here.

Pointed this thread out to Balance's mates at the LSE .....maybe a bit of raw material into a study on cognitive dissonance

Yes that's correct Winner, I also purchased a swodge of Spark and Genesis at "fair value" this time last year. I like fair value because it has an element of protecting my downside in the long run. Any upside is just a bonus. ATM seems to be getting fairer and fairer value as the SP dips. The good news is that as it does my average buy in price just keeps getting cheaper. I like that.

[see weed]

9.12 am.... Notice of special meeting.

[BFG]

9.12 am.... Notice of special meeting.

Nomination of see weed as official NZ spokesman for A2

[Jasemc]

seconded..

[BFG]

It's actually to announce the MAC/NBT/Seeweed/KW takeover.

Haha chuck me into it (if there's room left), A2 tastes great AND is a market performer!

[sb9]

Looks like some momentum building up into the sp...

[Sgt Pepper]

I was reading in the UK Guardian that price of milk in the UK has collapsed to 43p per litre due to the huge glut on the domestic and international markets. It is now cheaper than bottled water at 44p per litre. ATM has entered the UK market so I am not sure how severe the impact will be and how much leverage on A2 differentiation will be when the generic product price is collapsing.

Another point : why the heck are we paying so much in NZ for milk, it is completely out of synch with the rest of the world. How come?????

[MAC]

I was reading in the UK Guardian that price of milk in the UK has collapsed to 43p per litre due to the huge glut on the domestic and international markets. It is now cheaper than bottled water at 44p per litre. ATM has entered the UK market so I am not sure how severe the impact will be and how much leverage on A2 differentiation will be when the generic product price is collapsing.

I think the answer for you Sgt Pepper lays in two aspects, firstly the UK retail price trend below, you can see that ATM ranged the market when re-launching the product after the Wiseman buy out, and have recently increased back to the upper threshold, quite prospective, let’s see now if this sticks for the medium term.

Secondly, they do seem to be following a similar roll out approach in the UK now as they did in Australia, the Australian retail prices have not altered in five years from $2.50 per litre despite the ‘milk wars’ and $1 home brand milk. Over that time ATM went from 1% to 10% market share.

ATM’s products are offered into a different value added specialty market from general bulk A1/A2 milk supply.

A2MilkPrice.jpg

[Harrie]

Its all about profitability isn't it? Wouldn't ATM just be paying less for it at the farm gate so that after procesing costs their margin is more or less the same as it has always been, in fact, as a result of a lowering retail price, wouldn't the volumes consumed tend to rise = greater total revenue? I can't immagine that ATM would be fixing a price for delivery, albeit paying a premium over and above standard milk, as they currently do, just at a reduced price in line with standard milk.