ATM - A2 Milk Corporation Limited

[Soldog]

If it's something to do with the coming Aussie listing, to whose advantage is it to drive the price down prior to the listing taking effect?

a2 Milk Company? Could-be, food for thought!

[Ginger_steps_]

a2 is selling for $4.70 at coles now, everyday price, not on special - in line with Aldi's price. Given Coles and Woolies reputation would it be safe to assume this is coming out of a2's pocket?

[MAC]

That's a good question GS that probably only ATM could answer.

It may just come down to the terms of the respective retail agreements. With farm gate prices having dropped so dramatically the input costs for ATM will become lower over time.

It would be natural for the retail supermarket chains to want to share in that, although I would suspect that probably ATM margins would remain the same or may well even improve actually.

A retail price point drop from $5.00 to $4.70 is a much much lower percentage than that of farm gate milk prices which are down 40% or so in a relatively short space of time.

[NT001]

If it's something to do with the coming Aussie listing, to whose advantage is it to drive the price down prior to the listing taking effect?

a2 Milk Company? Could-be, food for thought!

Don't see the logic there, Soldog, especially as the a2MC board has already expressed the view the Aussie listing would help all shareholders, most of whom bought in at much higher prices than 50c.

[NT001]

Quite simple. If a certain international fund operator needs to offload excess stock, then sell it to sister branch in another jurisdiction that may have need of it very soon to boost parent profits. Short and shake to obtain discount and fallen extras, then sit back and watch as new buyers in other jurisdiction snap them up on the rise. My theory anyway.

But why would they have to do it by this method which involves daily market contortions with only moderate amounts of shares being transacted at this price over a long period of time?

[Ginger_steps_]

That's a good question GS that probust come down to the terms of the respective retail agreements. With farm gate prices having dropped so dramatically the input costs for ATM will become lower over time.

It would be natural for the retail supermarket chains to want to share in that, although I would suspect that probably ATM margins would remain the same or may well even improve actually.

A retail price point drop from $5.00 to $4.70 is a much much lower percentage than that of farm gate milk prices which are down 40% or so in a relatively short space of time.

Thanks MAC, makes sense i guess. I guess all will be clear in time - lets hope those margins are getting get so fat they need a mobility scooter to pop over to the ASX!

[NT001]

Interesting story here from the well-informed Keith Woodford about a big shakeout in infant formula prices in China. Not clear how it might affect a2MC

https://keithwoodford.wordpress.com/...ash/#more-1237

[drcjp]

But why would they have to do it by this method which involves daily market contortions with only moderate amounts of shares being transacted at this price over a long period of time?

Only reason I can think of is to shake out frustrated holders who give up and they can snap at least some of them up.
Of course, the whole thing depends on the SP going up when A2 lists on the ASX...........

[sb9]

Looks like it might be heading sub 50c soonish...

[babymonster]

Got me wondering do only us see its potential? Buyers are a lot less then sellers.