ATM - A2 Milk Corporation Limited

[blobbles]

There is one line and one line only that caused the SP drop today IMHO:

"We have had no further communication with either Freedom Foods Group Limited or Dean Foods Company since we advised that the proposal in the Expression of Interest was not compelling."

Clearly a lot of people were hoping these companies were going to improve their offer. When they found out that wasn't going to happen... run for the hills!

[Harrie]

I had to. Was losing over $3000 every time it dropped a cent. Looking for a dividend stock at the moment.Still got 140,000 in the 50c to 58c range and the rest over 73c and am happy with the holding. The brokerage was only $376 all up.

And what you go into is guaranteed not to drop by $3 grand a cent equivalent?
stick with your convictions SW, time better spent with distributing a2 flyers!

[NT001]

PPT been buying more now over 7% http://www.asx.com.au/asx/research/company.do#!/A2M They love to make announcments late in the day

I'm not really interested in a temporary rise or fall of a few cents in the SP, but the question in my suspicious mind is, on whose behalf is PPT buying? Could it be accumulating the shares for Freedom-Perich? This 7% on top of their 19% would make 26% which is about enough to scare other bidders away.

A report in today's newspaper The Australian (paywalled so I got just the first sentence) quoted Babidge as saying he hoped the FY result would satisfy Perich. Remember, it was Perich's discontent that led to the EOI. Can anyone give us more of what that story said? The Australian is the best informed media source on this subject.

[Soldog]

Geoff Babidge, managing director of a2 Milk, said yesterday he was hopeful the group’s reiteration of a more than doubling of earnings in the year ahead would give its shareholders, including the Perich family-backed Freedom Foods, a more positive view on the outlook for the company.
A2 confirmed yesterday that group revenue was forecast to increase 72 per cent to $267 million in FY16 and group operating EBITDA would rise 150 per cent to $12m before non-recurring items.
The forecast is underpinned by strong growth in its core Australian business and better-than-*expected revenues from its a2 Platinum infant formula across both ANZ and China.
A2 reported a net loss after tax of $2.091m for 2015 after absorbing costs associated with its ASX listing earlier this year and employee share-scheme expenses.
Last month a2 formally rejected an unsolicited takeover approach by Freedom and the US-listed Dean Foods Company and said it was exploring other potential approaches from other parties.
A2 confirmed yesterday that there had been no further communications with Freedom and a2 over the past month.
The Australian previously reported that Perich family patriarch Tony Perich in May expressed his frustration with a2’s strategy directly to Mr Babidge and indicated that Freedom Foods would try to buy a2. Freedom and the Perich family have a stake in a2 of just under 20 per cent.
It is believed the Perich family had been concerned about a2’s ability to execute its international expansion plans in a timely manner, especially in the US, without the support of a deep-pocketed partner. But there is speculation the family is now more comfortable with a2’s strategy.
Mr Babidge declined to comment on any direct discussions with the family, but told The Australian yesterday morning: “I have a long-term relationship with the Perichs that I regard positively.
“I’d like to think in consequence of the market update last month and today’s announcement and the significant growth opportunities for FY16 that are ahead of market expectations that all shareholders would have a more positive view about the prospects for the company. I would be hopeful about that.”
A capital raising also remains on the agenda over the coming year but no decision has been made to proceed with it.
The a2 share price has also risen from the level when Freedom and Dean Foods made their initial approach. A2 shares have risen from around NZ50c in late May to over NZ80c late last month. They closed 8 per cent lower at NZ71c yesterday.
“Clearly the share price has firmed over recent times which would be indicative of a better understanding of the company,’’ Mr Babidge said.

[airedale]

Good morning NT, how do you know that many NZ farmers "are quietly moving their herds to A2"? Documentary evidence?

[stoploss]

Good morning NT, how do you know that many NZ farmers "are quietly moving their herds to A2"? Documentary evidence?

Sounds like a logical move , they are not exactly being best served by Fonterra ATM ( at the moment ) ......

[see weed]

And what you go into is guaranteed not to drop by $3 grand a cent equivalent?
stick with your convictions SW, time better spent with distributing a2 flyers!

Run out of flyers couple months ago. Still like a2 and still hold lots and will top up more later on.

[see weed]

Buyers looking weak, good sign for more buying and maybe another t....

[Harrie]

jeepers someone is bailing....someone thinking that the CR price will be lower than $0.69c?
Seems like every bit of good news is met with another round of selling pressure. “I’d like to think in consequence of the market update last month and today’s announcement and the significant growth opportunities for FY16 that are ahead of market expectations that all shareholders would have a more positive view about the prospects for the company. I would be hopeful about that.”
I've never heard Babbage be so positive, maybe sellers are interpreting his comments as a desperate cry for help!

[Harrie]

NT, you wanted to know who perpetual were buying for. Hopefully the following helps.

Perpetual have been buying up on behalf of two major intl players.
There are two global investment managers Perpetual are buying for. Of the 49502632 shares purchased by Perpetual, the largest exposure is for RBC I&TS in Perpetual's "Wholesale ethical fund" (47.46%) and 13.98% in the "perpetual equity investment fund".
RBC Investor & Treasury Services (RBC I&TS) is a leading specialist provider of asset servicing, custody, payments and treasury services for financial and other institutional investors worldwide. They serve clients from 18 locations across North America, Europe, Asia and Australia, delivering custodial, advisory, financing and other services to manage risk in multiple jurisdictions. RBC I&TS is ranked among the world’s top 10 global asset servicing businesses, with CAD 3.54 trillion (USD 3.25 trillion) in client assets under administration (as at July 31, 2014).

There are smaller holdings for UBS. Perpetual hold 28.52% of their total holdings in the "share plus fund" and 10.02% in their "pure equity alpha fund" for them.
UBS Global Asset Management in Australia provides a comprehensive range of investment styles and strategies to institutional investors, intermediaries and retail investors.
UBS has $41 billion of invested assets in Australia (as at 31 December, 2014) and approximately 90 employees located locally, UBS is one of the largest global asset management businesses in the Australian market. Globally, with approximately $817 billion of invested assets under management (as at 31 December, 2014) and approximately 3,800 employees located in 24 countries, UBS Global Asset Management sees itself as a truly global investment manager.