ATM - A2 Milk Corporation Limited

[couta1]

xfalcon is correct

a2 will be pounded

http://m.nzherald.co.nz/sharemarket/...ectid=11581288

Aside from the fact that the price is already getting pounded, as long as they are growing total sales volume by increasing sales in other markets then I can't see why. Besides China aren't going to cut their nose off to spite their face, it will sort itself out and will be business as normal given a few months

[blobbles]

I think the point here is China with its massive lactose intolerant population needs milk products from companies like A2, Bellamys and Blackmores than the way around.

Its just that as someone mentioned here before A2 has become massive traders (shorters) stock in past few months.

Agree with couta1 there, A2 has not put all eggs in one basket they've huge potential in UK and US. If you're a believer in their longer term story nothing much has fundamentally from day before yesterday.

I think you are confused. Neither A2 milk nor organic milk deal with the problem of lactose intolerance. People who are lactose intolerant cannot drink A2 or organic milk. Sometimes however people believe they are lactose intolerant but are A1 protein sensitive. This is where A2 milk comes in.

If you believe A2 can be drunk by lactose intolerant people you are very mistaken.

[blobbles]

Has anyone looked up whether such an import tax as they are proposing would breach the free trade agreements NZ and Aus with China? I would have thought import taxes would be pretty much impossible considering these agreements...

[stoploss]

Has anyone looked up whether such an import tax as they are proposing would breach the free trade agreements NZ and Aus with China? I would have thought import taxes would be pretty much impossible considering these agreements...

They just change the rules to suit , bit like when they were in long term agreements on iron ore etc ...price went up they were happy as soon as the prices came off .... we don't like this we are not paying .....

[blobbles]

They just change the rules to suit , bit like when they were in long term agreements on iron ore etc ...price went up they were happy as soon as the prices came off .... we don't like this we are not paying .....

I hope that is not the case regarding our milk exports to China, would be a big case to take to the WTO if China could breach the FTA willy nilly.

This could be that they are imposing the tax only from Hong Kong to try to limit the cross border trade there.

[stoploss]

I hope that is not the case regarding our milk exports to China, would be a big case to take to the WTO if China could breach the FTA willy nilly.

This could be that they are imposing the tax only from Hong Kong to try to limit the cross border trade there.

They won't need our exports we have been selling them all our IP ,just as the Kiwi fruit people did with Italy .
They are gearing up to do it all themselves see this story . ( A2 is different I know ) But whats to stop them building those herds ...

http://usa.chinadaily.com.cn/opinion...t_21229700.htm

[Ginger_steps_]

Not sure what to do.... Load up as much as possible / Hold of for a little while longer - I dont think we will see prices sub $1.5 again once it begins heading north again. Theres so much news from a2 seemingly just round the corner that will more likely than not have a positive impact to the SP. Also china seems to have cooled off on the import regulation front after adverse affects to the economy since imposing the new tax - if this is the worst we get - a2 have a lot to work with!!!

[longy]

I am wondering if this story has got anything to do with the fallen of SP.

"The former chairman of US company Dean Foods, a takeover bidder for NZX-listed A2 Milk [NZX: ATM] last year, has pleaded guilty to insider trading charges brought by US authorities.

The Securities Commission issued a statement overnight alleging Las Vegas-based professional gambler William “Billy” Walters had made $US40 million ($60 million) by trading on stock tips from a corporate insider who owed him money."

[xafalcon]

Aside from the fact that the price is already getting pounded, as long as they are growing total sales volume by increasing sales in other markets then I can't see why. Besides China aren't going to cut their nose off to spite their face, it will sort itself out and will be business as normal given a few months

The Chinese formula market is not a western market, so western "normality" simply doesn't apply.

China will happily cut off their nose to spite their face, if there is a net gain in it for China.

China has stated a goal of reducing imported infant formula brand numbers from north of 300 to well below 50. And they are already moving along that path

It does this by constant regulatory creep and import uncertainty.

Grey-trade out of NZ was hit by this 2 years back, when MPI kow-tow'ed to Chinese authorities and effectively stopped the practice

It is only a matter of time before Aussie grey-trade is snuffed out as well, either by AQIS, or by the enforcement of regulations that require grey-trade imported formula to meet relevant Chinese national standards

And with about 75% of "Aussie A2 formula sales" in fact being grey-trade, I see a huge problem for both A2 and Synlait when the gate closes

Kind of like playing Russian roulette - everything is fine until the loaded chamber comes around

like everyone else, I have no idea when this will happen

[Nasi Goreng]

I don't quite understand why a grey trade exists at all. If there is demand in China, why do A2 not export direct?