ATM - A2 Milk Corporation Limited

[kizame]

Dipping on big volume too,but I think maybe just trading in a range,until more positive news.

[MAC]

Possibly media influenced, in conjunction with a technical trend and re-test of the MA50 following what was a relatively confident SP recovery earlier in the year post the capital raising and dilution.

According to the Ministry of Economic Development, the Chinese infant formula market is worth over NZD 7.43 billion (2011), of which NZ contributes around NZD 1 billion per annum. They project that this market will double by 2016.

One would hope that the Ministry of Primary Industries and New Zealand Trade and Enterprise would adequately resource the protection of what is a major growth prospect for the sector. At least protect matters at this end of the supply chain. Who knows if China can ever be influenced on this matter or any other ?

There is just absolutely so much up-side potential for ATM in this market, I would not be concerned about short term moves in SP.

[iceman]

Possibly media influenced, in conjunction with a technical trend and re-test of the MA50 following what was a relatively confident SP recovery earlier in the year post the capital raising and dilution.

According to the Ministry of Economic Development, the Chinese infant formula market is worth over NZD 7.43 billion (2011), of which NZ contributes around NZD 1 billion per annum. They project that this market will double by 2016.

One would hope that the Ministry of Primary Industries and New Zealand Trade and Enterprise would adequately resource the protection of what is a major growth prospect for the sector. At least protect matters at this end of the supply chain. Who knows if China can ever be influenced on this matter or any other ?

There is just absolutely so much up-side potential for ATM in this market, I would not be concerned about short term moves in SP.

While I am/was a long term investor in this one, I am very aware of the huge risks. China is without doubt the biggest growth market for ATMs products and articles like the one PT posted above have potential serious consequences for the industry. I therefore put this stock into the same risk portfolio as where I used to hold DIL a year or so ago. Huge potential uptrend but lots of unknowns.
I am with PT. This was initially a long term investment for me but the silence from the company doesn't give me much confidence. Presently I don't know whether to buy more or dump it !!!

[MAC]

It would be of really great interest to hear from someone with on the ground knowledge of the market place perceptions in China, not something I can assist with having never been there.

Is it possible that ATM with a marketing edge above other non A2 brands may be perceived as the 'best of breed' ?

Is it possible that ATM may even benefit from short term industry safety and quality concerns as one of the top quality and therefore trusted go to brands ?

[westcoaster]

Thanks, but can you please explain what you mean, I am just a Junior!

[westcoaster]

Great Thank you!

[blackcap]

Before we get all over exuberant do we know what the market cap of this company is at 60 cents and where it needs to go to justify that. Its not as expensive as say XRO granted but its getting up there...

[blackcap]

I know its no XRO but... you would really need sales in excess of $387m to justify a 60c share price... so... when is that going to happen and how. That is the question I have for this company. WIll see, am still debating whether to take a nibble

[janner]

I know its no XRO but... you would really need sales in excess of $387m to justify a 60c share price... so... when is that going to happen and how. That is the question I have for this company. WIll see, am still debating whether to take a nibble

You find yourself in the same position as mouse on HNZ..

The cheddar is there.. Do a little more research on your own behalf.. .

[blackcap]

I know Moosie.. sorry I was too brief, I was talking about future revenues. Didnt convey that well enough I guess. What I am saying is I find it difficult to envision where ATM is going to get that amount of revenue from in the future. It probably is there,but they are going to have to do a lot of work. Will keep watching and may buy in at some stage. I like their product (A2) and can see the markets emerging, but my fear is they cannot keep up with demand.