ATM - A2 Milk Corporation Limited

[Jasemc]

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.

From sml report.
In the last year we have seen this customer gain significant momentum with their infant formula business and we also began producing a new whole milk powder product for the Australasian market. Their growth indicates they will soon be a leading infant nutrition and powdered milk brand in the marketplace and we’re pleased to have increased our milk supply in FY15 in response to their success.

[NT001]

Show me the money! That's right - there isnt any, or rather, sweet FA. $1.9m revenue for BOTH countries. Meanwhile A2 did $41m in sales of formula in FY15, and got $13m in just 2 months of FY16. I know where I would be focusing my efforts if I were running A2.

Yes KW, but I wouldn't want the company to completely change its strategy and become a one-trick pony on the basis of relatively small revenues from fresh milk sales at the start of operations in the UK and US. It was easy to make quick money in a currently hyped infant formula market but markets are fickle, and one thing I liked about the UHT announcement in the UK was that it shows the company is doing interesting things that we don't even know about, testing the market for a range of A2 products.

I was also interested to note Wotherspoon is now CEO for both UK and China, which possibly suggests some of the British-made UHT may be destined for China, although initially they were saying it would be the company's initial product on the EU market.

[sb9]

Looks like someone is quietly accumulating in the past few days..Perpetual again?

[westcoaster]

https://www.fool.com.au/2015/10/06/r...per-investors/

[QFD Sage]

Hope they're right! TPP deal positive on the infant formula front also.

[stoploss]

https://www.nzx.com/companies/ATM/announcements/271446

[Snoopy]

https://www.nzx.com/companies/ATM/announcements/271446

67c is a very small discount to the market price. Why would Goldman Sachs New Zealand want to underwrite at that price? Perhaps no interest from the Australian market institutions, despite the recent listing there?

For the larger retail investors, the $15,000 small shareholder application ceiling is a nice bit of shafting for their loyalty.

SNOOPY

[Not too Flash]

The limit of $15k is the maximum due to listing rules. Only $3m means scaling will be major as only 200 shareholders will be enough to get it to $3m

[airedale]

The biggest piece of market news for weeks and the silence is deafening. The CR has been well signposted so perhaps there is not much to add.

[kiwi_on_OE]

67c is a very small discount to the market price. Why would Goldman Sachs New Zealand want to underwrite at that price? Perhaps no interest from the Australian market institutions, despite the recent listing there?

For the larger retail investors, the $15,000 small shareholder application ceiling is a nice bit of shafting for their loyalty.

SNOOPY

-GS no doubt get a fee, and have probably sounded out the market to see what demand there is. A high price indicates good demand hopefully.
-Depending on your definition of a small shareholder, they would probably get less than $15k in a pro-rata issue. So I don't see the $15k as a shafting. Shareholders can always try their luck with GS if they want more.
-$3m for the existing shareholders does seem a bit mean. So with the scaling it could be a shafting to the small shareholders.