ATM - A2 Milk Corporation Limited

[sb9]

http://www.interest.co.nz/rural-news...ite-nz-science

Another enlightening post by Prof Keith Woodford. Excellent read!!!

[whatsup]

ATM/A2M price now being driven from Aust -- read Day Traders & shorters. !!

[Joshuatree]

Yes.Been so for some time but has fallen from no 1 most discussed stock to currently 5 . Sold my last holdings a few weeks back; building cash my main strategy atm..

[Trigger]

Yes.Been so for some time but has fallen from no 1 most discussed stock to currently 5 . Sold my last holdings a few weeks back; building cash my main strategy atm..

JT...was your feeling that the news coming later in Feb was already priced in...or may surprise in an underwhelming way...or something else?

Cheers

Trigger

[sb9]

Apart from Chinese infant formula demand, I would be keenly looking out their progress in UK and US when they release numbers later this month.

Those two markets are future catalysts for this company.

[Trigger]

Apart from Chinese infant formula demand, I would be keenly looking out their progress in UK and US when they release numbers later this month.

Those two markets are future catalysts for this company.

Yes I am hoping we have made progress there also sb9. Either of those will be a juggernaut once they gain some traction. All will be revealed in a couple of weeks.

[Joshuatree]

JT...was your feeling that the news coming later in Feb was already priced in...or may surprise in an underwhelming way...or something else?

Cheers

Trigger

Yeah thats my thoughts Trigger; well priced in ,but i wouldn't put any weight in that. Ive double bagged plus and want some money off the table; ATM was sticking out in my portfolio (along with others). I may get another crack at ATM , i may not. Each of our investment situation's is unique and the risk off(selling at blue sky prices) and building cash is where I'm comfortable for the moment.

[Trigger]

Yeah thats my thoughts Trigger; well priced in ,but i wouldn't put any weight in that. Ive double bagged plus and want some money off the table; ATM was sticking out in my portfolio (along with others). I may get another crack at ATM , i may not. Each of our investment situation's is unique and the risk off(selling at blue sky prices) and building cash is where I'm comfortable for the moment.

Ok, understood thanks.

[Golfer01]

I believe the demand for their infant formula is far greater than what they (Synlait) can produce. In fact they've stated that.. Effectively I would be surprised if they've made any progress with other countries outside of Australia and China with infant formula because they can't fulfill their existing demand. Their milk powder business is growing rapidly but again hampered with production limitations. So it begs the question, what do they do to increase production (assuming they have the raw material)? I can't see them wanting to build a plant capable of manufacturing and canning costing in excess of $200m. They'll need to source existing facilities for manufacture. Is Synlait at maximum capacity? I understand A2 is now Synlaits biggest customer.... Would Synlait expand to accommodate increase production for A2? Would A2 look to Fonterra for manufacturing options? I would suspect Fonterra would have spare processing capacity? Interesting stuff. What I think you can bet on is that A2 is busily telling farmers to convert from A1 milking cows to A2 milking cows as better returns are on offer and tangible..

[Ginger_steps_]

I believe the demand for their infant formula is far greater than what they (Synlait) can produce. In fact they've stated that.. Effectively I would be surprised if they've made any progress with other countries outside of Australia and China with infant formula because they can't fulfill their existing demand. Their milk powder business is growing rapidly but again hampered with production limitations. So it begs the question, what do they do to increase production (assuming they have the raw material)? I can't see them wanting to build a plant capable of manufacturing and canning costing in excess of $200m. They'll need to source existing facilities for manufacture. Is Synlait at maximum capacity? I understand A2 is now Synlaits biggest customer.... Would Synlait expand to accommodate increase production for A2? Would A2 look to Fonterra for manufacturing options? I would suspect Fonterra would have spare processing capacity? Interesting stuff. What I think you can bet on is that A2 is busily telling farmers to convert from A1 milking cows to A2 milking cows as better returns are on offer and tangible..

I was under the impression that Synlaits new facility has ample capacity for increased production?? It would be a shame if their facility is already maxed out considering its less than 2 years old!

Anybody know what the cost of the a2/a2 tail hair costs per cow??