ATM - A2 Milk Corporation Limited

[sb9]

De javu...

[NT001]

ATM recently made the move from 2l to 1l bottles in the UK per the re-launch plan. Morrison’s are selling the new 1l bottles for £1.00, Tesco’s are selling the 1l bottles yet higher again at £1.39, Waitrose also at £1.39. Onward, forward and upward in the UK I suspect

It shows you can charge premium prices much more easily once you take A2 milk off the "ordinary" milk shelves where it just gets lost and causes puzzlement among the customers, and market it on the specialty milk shelves alongside almond, soy and lactose-free. That's the strategy outlined by CEO Wotherspoon in his interview late last year. Of course if Morrisons can make a profit selling at a quid a litre, the others are creaming it at £1.39 without benefiting us poor shareholders very much. But at least their pricing suggests there's a good market. I like the explanatory blurb about A2 that Tescos offer.

Presumably the same sales strategy will be used in the US. No point in just going head-to head with standard milk in a wealthy and health-conscious market like California. Not to mention China, where a certain percentage of consumers won't balk at price for quality, and the trick will be to differentiate the product.

[drcjp]

OK, maybe someone can explain this me because I am too simple (or naive) to work it out.

For one year I have screenshotted and saved ATM trading data from the NZX site. I have noticed the real-time volumes sometimes don't add up and can be out by hundreds of thousands on a day, as they dissappear the next day.

And then there is the common 5'OClock price drop on zero volume, eg.
ATM 13215.jpg

How is this possible? Can brokers withhold the volume traded? If so, why?

So many questions...

[Snow Leopard]

Why your broker does what they does I have no idea.

But I find that stocknessmonster.com are fairly reliable:

so for ATM today you could take a picture of this

Best Wishes
Paper Tiger

[MAC]

It shows you can charge premium prices much more easily once you take A2 milk off the "ordinary" milk shelves where it just gets lost and causes puzzlement among the customers, and market it on the specialty milk shelves alongside almond, soy and lactose-free. That's the strategy outlined by CEO Wotherspoon in his interview late last year. Of course if Morrisons can make a profit selling at a quid a litre, the others are creaming it at £1.39 without benefiting us poor shareholders very much. But at least their pricing suggests there's a good market. I like the explanatory blurb about A2 that Tescos offer.

Presumably the same sales strategy will be used in the US. No point in just going head-to head with standard milk in a wealthy and health-conscious market like California. Not to mention China, where a certain percentage of consumers won't balk at price for quality, and the trick will be to differentiate the product.

Yep, especially when one considers that the 1l bottles at €1.39 are within the upper range of the specialty brands on offer, and, just one year ago a 2l bottle of a2 milk, under the Wiseman JV, was retailing for only €1.49

A strategy that worked well in Australia, some will say that all markets are different, and fair enough, some too are more similar than others and there is all the potential within the UK and the US for a similar level of uptake.

The ATM goal for the UK was to achieve just a humble 1.8% market share by FY16, Wiseman held them back for six months perhaps a little longer, but that really doesn’t seem to be an overly ambitious target to ultimately achieve to me.

23 million folk in Australia, 64 million folk in the UK, 319 million folk in the US, potential a2 customers all.

[drcjp]

Why your broker does what they does I have no idea.

But I find that stocknessmonster.com are fairly reliable:

so for ATM today you could take a picture of this

Best Wishes
Paper Tiger

Cheers Paper Tiger
That site is much better and explains quite a bit to a noob like me
Much appreciated

[see weed]

Someone has an order to buy 20,000 at .485c. Did'nt know you could buy in half cent lots on ATM shares.

[winner69]

Someone has an order to buy 20,000 at .485c. Did'nt know you could buy in half cent lots on ATM shares.

Wonder if Derek Handley buying?

[see weed]

China running out of milk powder.Could be good for a2 milk powder?

[nextbigthing]

One week until the interim report is due (released Wed 25th Feb apparently). What are your predictions for sales?

Australia we've been told is 38% up for the first four months. China we know had the regulatory issues. The Aussie exchange rate won't be helping but the lower cost of milk will. The UK? Who knows, very early days for the relaunch. And NZ? Traditionally very little, but perhaps their will be a spike in sales where seeweed lives

$70-75M?