ATM - A2 Milk Corporation Limited

[kiwi_on_OE]

I stand corrected, i should have said it has gone up 5.75 times in one year not %. Almost 6 bags.

No, it has gone up 4.75 times. You could say the price is now 5.75 times what it was a year ago, if you insist on using 5.75. (i haven't checked the maths, I'm just assuming the numbers are correct)

But back to the real issues.

So they're doing well in Aus with baby formula. Do we know how much of that is being sold for babies in Aus, and how much is being 'exported' for babies overseas? If the former, great. If the latter then I wonder how much is being bought for export as an A2 product and how much is being bought just because it is on the shelves? If the latter then it might not take much for it to lose it's popularity.

[Harrie]

I wonder how much is being bought for export as an A2 product and how much is being bought just because it is on the shelves? If the latter then it might not take much for it to lose it's popularity

I must admit that's a point I have recently pondered as well. I suspect both actually, otherwise the growth against other brands would not look as impressive. The message is getting through albeit slowly. Need the results of the research project being conducted in China to give it a kick along.

[Harrie]

[QUOTE]So in the UK and USA where they are struggling to get traction with fresh milk sales (with its niche specialty milk designation) it might be of more benefit to launch the A2 formula there instead [QUOTE]

What evidence do you have that this is the case in the USA KW?

[Harrie]

[QUOTE So in the UK and USA where they are struggling to get traction with fresh milk sales (with its niche specialty milk designation) it might be of more benefit to launch the A2 formula there instead [QUOTE]

What evidence do you have that this is the case in the USA KW?
Seems contrary to the scores of outlets already opened across the U.S.A which are supplying a2 fresh milk. This is seen on the USA A2mc website.
This is now more than just a Southern California toe dipping deal.

[Ginger_steps_]

I'm wondering if supply is becoming an issue for a2mc?

If supply is an issue, it would make more sense as KW has suggested to produce baby formula and sacrifice the fresh milk supply. There seems to be an endless demand for "healthy" baby formula.

Havent been able to get a2 at our supermarket for about a week now (in the wop wops of NSW).... supply issues?? hopefully not.

[QFD Sage]

What will be the next catalyst for ATM share price growth? Maybe a trading update? Share price showing good resilience at the moment in my view.

[airedale]

Hi QFD, the thought of a capital raising will be weighing on investors' minds.

[NT001]

... the thought of a capital raising will be weighing on investors' minds.

Maybe so, airedale, but I agree with QFD Sage that a trading update is likely soon, which will be very positive, given the recent expansion of sales outlets in the US plus the very interesting details about A2 contained in this week's FY report of SML, which have not so far attracted much attention.

Plus, we now have this report from the UK that suggests things are going ahead pretty quickly there.

<http://www.thegrocer.co.uk/buying-and-supplying/new-product-development/milk-brand-a2-launches-two-long-life-uht-cartons/525028.article>

I have seen nothing to suggest a failure to gain traction in the US and UK as suggested by KW.

[airedale]

Maybe so NT, it may work like this....a positive trading update to stimulate interest and boost the SP and then the capital raising.

[Nasi Goreng]

They will have to give a trading update before the capital raise. Anything but a positive trading update and the result could be quite the opposite. Things have got to go very well for a number of years to get to an NPAT of $40m which would be a decent return for the current share price.