ATM - A2 Milk Corporation Limited

[okay]

I half suspect that maybe Milford are just buying more to keep the price up and in that uptrend. Will be interesting to see if it can break that 75/76 resistance in the near future (long term I'm sure it will). Maybe the market is worried about the major shareholders unloading more of their shares - a real concern.

Yeah. Have noticed a number of 1m trades

[MAC]

Following the fire it looks like Muller Wiseman are making up production from other facilities. Given they have 30% of the UK milk market, one plant out of service within their fleet probably isn’t a big impact.

Should keep all that good A2 flowing into supermarkets also.

http://www.thegrocer.co.uk/fmcg/fres...350784.article

[MAC]

I don’t begrudge Geoff Babbage selling some shares and taking a well deserved profit after growing the company to where it is. Although, perhaps it would have been a little more prudent to issue new shares, as a bonus, after meeting a significant goal, perhaps after reaching the $280M in revenues by FY16 target. Then, who knows what is in his contract with ATM and what the goals are.

But, at the end of the day, it’s been as good a reason for short term traders to cycle the SP back to the longer term trend line as any other.

The fundamentals and growth outlook for ATM are not affected whatsoever, and each day that goes by the extraordinary acceleration in growth that ATM is achieving continues.

Consumers in Sydney, Melbourne, Manchester and London continue to buy up A2 milk in ever increasing volumes, new products are coming on stream at a furious rate, we should get an announcement regarding market entry into the US and Canada any time soon. Let alone infant formula selling now in Australia and China.

Disc: Buy

[Captain Dan]

Hi all,

I'm looking at buying into ATM, but i see from some of the recent posts that while everyone seems to have a positive outlook for ATM there is some differing opinions on whether now is a good time to buy at its current SP.

I know its achieved good market penetration in Aus (and still going) and is expanding into China and the UK. It also had good growth in FY13 compared to the previous year. And I'm going to assume (and hopefully not make an ass out of myself) that this growth should continue, based on the expansion and sales plans. From my research so far the management also seem very competent, so no issues there. Taking that into account, and the fact that ATM gets (most of) its income from royalties, what other factors have people taken into consideration when valuing this company? Any help/assistance/guidance would be greatly appreciated.

Also, JonnyTheHorse, I as wondering what you were meaning when you were waiting for your buy signals? Does this mean a lower SP, a change in overall market conditions or awaiting some announcement from the company (I get these are all linked to some extent, just want to get an idea on what others see as being triggers to buy).

Cheers
CD

[JohnnyTheHorse]

Also, JonnyTheHorse, I as wondering what you were meaning when you were waiting for your buy signals? Does this mean a lower SP, a change in overall market conditions or awaiting some announcement from the company (I get these are all linked to some extent, just want to get an idea on what others see as being triggers to buy).

Basically with this company I'm just using the charts (technical analysis) to determine when to buy and sell. It is well worth learning the basics of this (I am nowhere near an expert at it). With that said, I do like the fundamentals of the company and think the long term success should be pretty good. Currently there is nothing that says to me ATM is a buy from a technical perspective - it has broken out of an uptrend an appears to be going nowhere for the time being. My main issue with holding this one is that I reckon that the major shareholders will sell down - that hammered the stock the last time that happened.

[Captain Dan]

Thanks JTH. I've got a couple of books on TA and charts which I hope to make a dent in over the long weekend.

[shar187]

Just saw the TV advert for A2 Platinum milk formula - they are certainly putting some bucks behind the launch.

Might have been advertised for a while but just seen advert for first time in NZ this evening too.

[kiwi_on_OE]

Here in Australia at my local supermarket, A2 has gone from being a niche shelf in the supermarket to taking up about 1/3 of the total milk space. Pretty good really. I am hoping that A2 is one of those companies that Buffet and Lynch talk about - the ones where local investors get to spot the opportunity simply by going about their daily lives, and eventually all the funds and big companies begin to notice it too.

Anyone know anyone in the UK who can do some milk monitoring?

I'm keeping an eye out for it in central London, haven't seen it yet. But according to their website it is in a number of places. Central London supermarkets often aren't much bigger than corner stores, so with competition for shelf space I don't have high hopes of seeing it.

[Scottman]

Is there a link with a rundown on the history of the management team. I don;t doubt they are doing a good job I just want to know more about them. Can't see any info on their website. Only a list of names.

[blobbles]

When and where is their AGM? I know someone here will know...