ATM - A2 Milk Corporation Limited

[percy]

First time poster.
IMHO, the recent shenanigans re the ATM is an insto shorting to allow new director based in aussie to purchase at cut rate prior to listing.

Price below 50c has not been seen since 2012. Milford and Freedom still have holdings as per 28 Nov 2014. Richard Le Grice is last director to declare changes.

The only other thing I can think of is insto shorting to keep ASX listing low (as it will be based on average price at set period) in order to generate ASX interest. All legal of course but hardly policed that well.....

Should you be correct they started the shenanigans on the 2nd May 2014,when the sp went below the 200 day EMA., ATM has been in a steady down trend since then.

[winner69]

This situation is certainly starting to raise my interest. OBV is down by around 10% of issued shares in the last 12 months, yet selling SSH notices are absent (apart from AMP). Obviously the total shares traded in this time are much larger than the 10% of issued shares. One would think we would be seeing some SSH notices.

Shorting is certainly a possibility. Its has been a steady grind downwards in the past 12 months. I am unsure of the SSH requirements when it comes to shorting in NZ - maybe someone can chime in on that? Shorters never really own the shares, so is it required for them? And is it required for whom they have borrowed the shares from?

The intention of shorting to then acquire the company cheaply is an interesting thought. I do wonder about the legalities of doing this however.

It could of course just be that several instos no longer value it at what they did and are selling down.

Let see what happens...

Maybe the only true thing said on this thread over the last week or so

Always respected your posts Johnny

[babymonster]

What will happen tomorrow? More declines or bounce back? Always fun to think of the unknown

[see weed]

someone traded 359 shares for four times within an hour time, can anyone explain why like that? I wouldn't be able to recover the fees paid to brokerage

https://www.forsythbarr.co.nz/market...NZX/ATM#trades

I bought 20,000 at .47c at about 4.30pm. on thur.5/2/15. There were plenty of buyers plus about 209,000 buyers at 46c. and only 29,000 at .47c. to sell. Then at 4.59pm. some broker decides to sell 10 blocks of shares equal to about 209,000 shares at .46c, forcing the price back down. Are the brokers forcing price down for the ASX listing? I was told the brokers were organising the ASX listing. Who knows, time will tell.

[NT001]

Are the brokers forcing price down for the ASX listing?

Interesting question. And the next question is, what's to be gained by doing this? Most shares in ATM are held in NZ and no more are being issued for the Aussie listing. Australians who want to buy ATM shares will have to buy them mainly from NZ holders in the new dual market, most of whom (apart from some short term traders) are not going to be willing to sell at 46c or even 60c. The main Australian holder, Freedom Foods, isn't going to sell at low prices either. I can't think of a rational reason for anyone trying to actually force the share price down.

So I'm inclined tothink that maybe AMP is under some serious time contraint to sell the rest of its holding, and is simply lowering its sell price to achieve this. What puzzles me a bit is why they can't find buyers in Australia at a better price prior to the listing. Any thoughts? If it's part of a plot to lower the price in preparation for a takeover bid, the same issues apply. The vast majority of shares are held by investors who wouldn't dream of selling at current price levels, or even at 60c.

[see weed]

Interesting question. And the next question is, what's to be gained by doing this? Most shares in ATM are held in NZ and no more are being issued for the Aussie listing. Australians who want to buy ATM shares will have to buy them mainly from NZ holders in the new dual market, most of whom (apart from some short term traders) are not going to be willing to sell at 46c or even 60c. The main Australian holder, Freedom Foods, isn't going to sell at low prices either. I can't think of a rational reason for anyone trying to actually force the share price down.

So I'm inclined tothink that maybe AMP is under some serious time contraint to sell the rest of its holding, and is simply lowering its sell price to achieve this. What puzzles me a bit is why they can't find buyers in Australia at a better price prior to the listing. Any thoughts? If it's part of a plot to lower the price in preparation for a takeover bid, the same issues apply. The vast majority of shares are held by investors who wouldn't dream of selling at current price levels, or even at 60c.

I was told at special meeting that they did't need any shares from me or any other share holders, but the brokers were going to supply all the shares for the ASX listing.

[Harrie]

All this talk about dropping the price for listing or take over is just a load of bollocks. To whose advantage is it anyway? Certainly not the sellers. As I have said before a short seller could easily get caught with his pants down given the relative illiquidity of these shares, with the tradjectory this company proports to be heading. A little published good news in the UK showing increased sales would be enough to add 10%+ in a days trading. Too risky.
IMO its just that you have strong sellers for whatever reason (suspect institutional portfolio rebalancing mainly because they look at % exposure rather than potential or putting more emphasis on dividend producing stocks) and weak demand based on a lack of information or just straight boredom with the wallowing SP.
As far as depressing the price for listing, why would anyone want to sell and depress the price on purpose so that the Aussy boys can pick these shares up at a price well below what most institutions bought in at when listed on the main board?
As far as depressing the price for takeover, even if there was some manipulation of the price for takeover purposes who is going to accept an offer under $1.00?
If any institutions or absolute return funds in Aussy were thinking about buying these when they listed in Aussy, you might have thought that they would have done so before the latest round of interest rate cuts in Australia which sunk the Aussy dollar.

Its all bollocks. Its all simply supply and demand nothing more. Pay the money and take your chances.

[MAC]

Any Australian entity wishing to take a large stake would not be concerned about buying on the NZX, it’s a simple transaction to transfer shares between exchanges. And, it's understandable they would want their holding ASX listed for forward re-balancing when or if so required.

There have been no SSH’s for a long time, if there was an insto selling under 5% it would be a bit unusual for someone on this forum not to have posted it up from broker advice or elsewhere.

It is certainly is an interesting circumstance when most FA's are so entirely bullish on the prospects and outlook of the company, no wonder so many are convinced of manipulation.

Still, ATM is a growth company doing very well and they are reporting in 2-3 weeks.

What would happen if the reported, Revenues: $70M (+30%), NPAT: $1.0 to $1.5M (+56% to +133%)

[Beagle]

All this talk about dropping the price for listing or take over is just a load of bollocks. To whose advantage is it anyway? Certainly not the sellers. As I have said before a short seller could easily get caught with his pants down given the relative illiquidity of these shares, with the tradjectory this company proports to be heading. A little published good news in the UK showing increased sales would be enough to add 10%+ in a days trading. Too risky.
IMO its just that you have strong sellers for whatever reason (suspect institutional portfolio rebalancing mainly because they look at % exposure rather than potential or putting more emphasis on dividend producing stocks) and weak demand based on a lack of information or just straight boredom with the wallowing SP.
As far as depressing the price for listing, why would anyone want to sell and depress the price on purpose so that the Aussy boys can pick these shares up at a price well below what most institutions bought in at when listed on the main board?
As far as depressing the price for takeover, even if there was some manipulation of the price for takeover purposes who is going to accept an offer under $1.00?
If any institutions or absolute return funds in Aussy were thinking about buying these when they listed in Aussy, you might have thought that they would have done so before the latest round of interest rate cuts in Australia which sunk the Aussy dollar.

Its all bollocks. Its all simply supply and demand nothing more. Pay the money and take your chances.

I agree 100%. When there's lots of pain people look for reasons, (its only human nature).

[GizyGold]

Someone with lots of shares could be manipulating the price. Possibly dumping their shares over a few months and causing the price to fall which forces the weaker investors to sell. They will simply just wait until a good time (mayby before the ASX listing) to start buying back and the price will rise again. I reckon it is just some method of sneaky accumulation prior to ASX listing so they can have more shares to offer clients. Oh well it looks like it us up today which is good.