ATM - A2 Milk Corporation Limited

[bull....]

http://www.asx.com.au/asxpdf/2015030...zd0hxk49ty.pdf

pg 17 freedom foods reclassifies a2 as investment for sale

[Snoopy]

http://www.asx.com.au/asxpdf/2015030...zd0hxk49ty.pdf

pg 17 freedom foods reclassifies a2 as investment for sale

A true statement bull, but a very misleading series of words nevertheless

"During the period, the Company reclassified how it accounts for the investment in a2MC. This resulted from the resignation of Mr P R Gunner from the a2MC Board in November 2014 and the determination by the Group that it no longer was able to clearly demonstrate that it exercised significant influence over a2MC. Significant influence was deemed to be lost at the conclusion of the a2MC AGM and therefore on this date the group has reclassified the investment to an Available for Sale investment (AFS) under the requirements of AASB 139 Financial Instruments: Recognition and Measurement."

Looks like it is just an accounting standard requirement that has lead to A2s reclassifiaction.

"As a result, the Company intends to maintain a strategic shareholding in the medium term, while retaining the option to realise capital from the investment to support growth opportunities."

So actual position is no different to how it was before.

SNOOPY

[bull....]

i take it that they cannot take - over a2 anymore so they are saying we will reclasify the investment as just that an investment which can be brought or sold - just my interpretation naturally everyone reads things differently thats what makes the market

[bull....]

anyway you should all be happy as now milford and acc have ensured it remains a nz company now.

[Harrie]

http://www.asx.com.au/asxpdf/2015030...zd0hxk49ty.pdf

pg 17 freedom foods reclassifies a2 as investment for sale

Yes but also intends to keep a strategic holding, question is what is that likely to be.
Also they say on the outlook page that a2mc provide freedom food shareholders a significant value creation opportunity.

Bit of a mixed message here. best bet is that they "may" sell a2mc if the price is right and also dependant on whether they can utilise the proceeds into a better investment opportunity where they receive a better return on funds employed than they get from a2mc.

Worth noting that they also said this a year ago but have maintained their holdings.

[bull....]

therefore on this date the group has reclassified the investment to an Available for Sale investment (AFS) under the requirements of AASB 139 Financial Instruments: Recognition and Measurement."

this key statement so you probably right if the price right or better investment comes up they might sell

[Harrie]

Actually, when you get statements that need to be made as a requirement to meet certain statutory reporting obligations, and put those agaist statements such as: " provide freedom food shareholders a significant value creation opportunity" and "intends to keep a strategic holding", it seems more unlikely that they are about to give up that investment opportunity anytime soon IMO.

[MAC]

Australia and California are quite similar markets, sure uniqueness’s, but as far as global diversity goes they have enough in common to suggest the Australian business model will do quite well.

Both have a big focus on wellness and health internet sites, both have a western culture of relatively high milk consumption per person, they have similar levels of affluence and disposable income, and they both have a growing emphasis on healthy options as a lifestyle choice.

Both geographical areas presently have almost completely a1/a2 dairy herds, and they have quite similar population relationships between heart disease, other conditions and beta casein intolerance.

http://www.betacasein.org/index.php?p=science-overview

HeartDiseaseBetaCasein.jpg

[MAC]

Actually Cali is far ahead of Aus - McDonalds did salads and chicken burgers there long before they were offered elsewhere :-)

And perhaps KW, it may just take one or two wellness focused Hollywood celebs to mention in passing at some function or another that they have tried a2, and boom, a2 milk might fly off the shelves faster than wrinkle cream.

[babymonster]

Close unchanged. I was hoping at least 58c