ATM - A2 Milk Corporation Limited

[drcjp]

Hi Snoopy
sure, my post is only my opinion. But I think A2 really IS a biotech as they make their earnings off substantial IP surrounding A2 casein. Milk is the current avenue. Kinda like Manuka honey etc. Started with eating it and now....

When I said creams, I meant cream in your coffee. My bad. ATM's not classed as a biotech by the NZX because again IMO, the NZX is immature, ineffectual and does not have any idea what biotech looks like. My experience with biotech is international which is another world indeed.

A2 protein can have many uses, just like A1. A1 casein is a body building supplement and used to facilitate tooth mineralisation.
Casein and its derivatives can assist gel formation in wound healing, an important property being exploited by CodaTherapeutics as part of its current programme.

Deriving from the above is WHY A2 will be a buyout, imo. From a biotech pov, its not what its selling now - that is literally the financial basis for purchase only, ie. capital turnover - its what the IP can give you into the future. I can see why you would only think its IP derived revenue, but any board worth its salt drives for pricing basis on total revenue, ie. a premium on untapped IP.

It's entirely possible to make a cream or skin ointment out of protein btw. Gut cells are epithelial in origin like skin. Granted differential effects must be carefully determined eg. strep throat bug in mouth gives bloody sore throat, but same bug on skin causes necrotising faciatis.

I realise I have an entirely different view on the company than most, but that's what makes investing fun

[skid]

Chinese consumers are actually very clued up,particularly when buying foreign milk. I have heard them having discussions about why one countries milk is better in some ways than another countries (in China, in Walmart/Carrefoure/Metro). It stands to reason that a clued up population who have a slight natural intolerance to milk will want to buy a milk which is easier to digest.

ATM definitely are not betting the farm on the US market, they are placing themselves in lots of markets to see which ones take. If any of them do, they win big. With their high margins they will scale well wherever they succeed.

Yep,I was just kind of throwing it up for consideration--They(Chinese)do seem to be health conscious in terms of exercise but are pretty ''no frills''in other areas--i could see them eating Rhino horns but maybe not organic vegies--I kind of get the feeling that the clued in segment of the population is still relatively small(vast majority still more on the basic level,for food.) but Im no expert--maybe others would know(same with their uptake of Bliss products)

The idea of breaking into the US market was again just an idea to be kicked around(as many of the more popular shares are setting their sights on that market[probably even more so than ATM in terms of do or die]

This thread seems to be a new contender for the ''new darling'' in terms of threads from NZO to XRO,PEB to ATM

[skid]

Hi Snoopy
sure, my post is only my opinion. But I think A2 really IS a biotech as they make their earnings off substantial IP surrounding A2 casein. Milk is the current avenue. Kinda like Manuka honey etc. Started with eating it and now....

When I said creams, I meant cream in your coffee. My bad. ATM's not classed as a biotech by the NZX because again IMO, the NZX is immature, ineffectual and does not have any idea what biotech looks like. My experience with biotech is international which is another world indeed.

A2 protein can have many uses, just like A1. A1 casein is a body building supplement and used to facilitate tooth mineralisation.
Casein and its derivatives can assist gel formation in wound healing, an important property being exploited by CodaTherapeutics as part of its current programme.

Deriving from the above is WHY A2 will be a buyout, imo. From a biotech pov, its not what its selling now - that is literally the financial basis for purchase only, ie. capital turnover - its what the IP can give you into the future. I can see why you would only think its IP derived revenue, but any board worth its salt drives for pricing basis on total revenue, ie. a premium on untapped IP.

It's entirely possible to make a cream or skin ointment out of protein btw. Gut cells are epithelial in origin like skin. Granted differential effects must be carefully determined eg. strep throat bug in mouth gives bloody sore throat, but same bug on skin causes necrotising faciatis.

I realise I have an entirely different view on the company than most, but that's what makes investing fun

Amazing that making milk back to what it was originally, is now Biotec --shows how far we have come in screwing things up

a

[NT001]

Amazing that making milk back to what it was originally, is now Biotec --shows how far we have come in screwing things up.

That's a nice irony and an amusing one Skid, but not quite true of course. The corrupting of cows milk with the A1 gene was not a human screw-up (for once), but a chance random genetic mutation. And the biotech now being put into practice by a2MC lies in showing how this mutation causes various present-day human medical conditions, as well as developing a method of weeding out the screwed-up A1 cows to get back to the original milk formula that Plunket nurses used to feed to neanderthal babies.

[blobbles]

Yep,I was just kind of throwing it up for consideration--They(Chinese)do seem to be health conscious in terms of exercise but are pretty ''no frills''in other areas--i could see them eating Rhino horns but maybe not organic vegies--I kind of get the feeling that the clued in segment of the population is still relatively small(vast majority still more on the basic level,for food.) but Im no expert--maybe others would know(same with their uptake of Bliss products)

The idea of breaking into the US market was again just an idea to be kicked around(as many of the more popular shares are setting their sights on that market[probably even more so than ATM in terms of do or die]

This thread seems to be a new contender for the ''new darling'' in terms of threads from NZO to XRO,PEB to ATM

In terms of Bliss products - the Chinese already have a well established and functional traditional medicine system that is very effective for them. Frankly not a lot of people suffer from colds/flu/strep throat in China, which is weird because you would think the high population and mostly cold winter climates it would be a good breeding ground. Which says something about the effectiveness of TCM. They definitely are NOT "no frills" in other areas, there is a reason it is now one of the biggest market for premium items in the world, from Lamborghini to Apple to Gold and more and more organic/health food. The people that afford these things are generally well educated and informed. They may only be 5% of China's population, but that is 70 million people, a bit more than the entire population of the UK.

The consumers themselves are usually a mixture of curious, excited and suspicious about western products. Hence they do a lot of research before buying stuff. But they will often buy expensive goods just for face, so they can show to their friends/relatives/business associates how worldly and clever they are at having found goods that differentiate themselves from a fairly vanilla populace. This is why it is a great market to be in with a product that is different, expensive and healthy (which ALL foreign milk is to them). The more you differentiate yourself, the more expensive you are and the healthier (whether perceived or real) the more you will appeal to this "upper class" and the more desirable you become. This applies to ATM in that it is already popular in Australia (a rich economy they look up to and is considered very unpolluted), very expensive but considered to be even healthier than normal milk. This is why I believe they will do well in China as long as they market themselves well and don't have any food scandals.

I see our 5 oclock man is back in town! ASX listing this week? Next week?

[skid]

In terms of Bliss products - the Chinese already have a well established and functional traditional medicine system that is very effective for them. Frankly not a lot of people suffer from colds/flu/strep throat in China, which is weird because you would think the high population and mostly cold winter climates it would be a good breeding ground. Which says something about the effectiveness of TCM. They definitely are NOT "no frills" in other areas, there is a reason it is now one of the biggest market for premium items in the world, from Lamborghini to Apple to Gold and more and more organic/health food. The people that afford these things are generally well educated and informed. They may only be 5% of China's population, but that is 70 million people, a bit more than the entire population of the UK.

The consumers themselves are usually a mixture of curious, excited and suspicious about western products. Hence they do a lot of research before buying stuff. But they will often buy expensive goods just for face, so they can show to their friends/relatives/business associates how worldly and clever they are at having found goods that differentiate themselves from a fairly vanilla populace. This is why it is a great market to be in with a product that is different, expensive and healthy (which ALL foreign milk is to them). The more you differentiate yourself, the more expensive you are and the healthier (whether perceived or real) the more you will appeal to this "upper class" and the more desirable you become. This applies to ATM in that it is already popular in Australia (a rich economy they look up to and is considered very unpolluted), very expensive but considered to be even healthier than normal milk. This is why I believe they will do well in China as long as they market themselves well and don't have any food scandals.

I see our 5 oclock man is back in town! ASX listing this week? Next week?

Yep-If it turned out that 70mil turned out to be keen--It would certainly not be a drop in the bucket
Its easy to see why they are lured by shiny new western things like apple and Lamborghinis(think you might be getting a bit out of that 5% on that one)--I wonder how changing eating habits goes on that--they like that baby formula so stands to reason it would work with milk.

[NT001]

Yesterday I posted a comment (3386) about China's reputedly high rate of lactose intolerance and suggested a lot of this might in fact be A1 intolerance, creating a strong potential sales point for a2MC. What's needed of course is human clinical research to verify this, and as a number of posters on this thread have emphasised, more human clinical trials could help sales overall.

The company's 1H15 report in fact states that it has already "commenced human studies in a number of markets" to further build on the important clinical trial recently conducted at Curtin University in Perth. Given that a2MC currently has only four markets (Australia, NZ, China and the UK, with the US coming soon), let's hope China is one of the "number of markets" where human clinical research is now under way - and the others as well of course.

[babymonster]

6 days in a row closing lower.

[winner69]

6 days in a row closing lower.

Some would call that a down trend and AMP not even to blame. Others would say a total irrational, esp as NZX approaches a new record high

Only back to what it was a week or so ago .... as they say what goes up must come down

[couta1]

Some would call that a down trend and AMP not even to blame. Others would say a total irrational, esp as NZX approaches a new record high

Only back to what it was a week or so ago .... as they say what goes up must come down

The NZX may be approaching a record high but half of the stocks in it are way of there all time highs including this one.