ATM - A2 Milk Corporation Limited

[Leftfield]

Not to forget about the share buy-back which they haven't even started yet either.

Can't help thinking that now the SP has moved up so much, that ATM may reconsider the share buy-back, and instead reward us all with a bigger special divi...... mere speculation tho'.

What-ever happens - nice to be 'well positioned.'

Suse, Both XRO and BLT have already doubled in my portfolio, and I expect them to do so again (just a question of when, but likely by end 2018.) FYI My portfolio is a bit 'left field' and biased to longer term capital gains (tax free) rather than dividends.)

[Snow Leopard]

Not to forget about the share buy-back which they haven't even started yet either.

A 40 million dollar share buy back is immaterial for a 5.5 billion dollar company.

Best Wishes
Paper Tiger

[couta1]

A 40 million dollar share buy back is immaterial for a 5.5 billion dollar company.

Best Wishes
Paper Tiger

Agree with that, basically like a needle in a haystack in terms of having any effect on the SP or anything else for that matter, the special dividend would need to be substantial to be meaningful at the current SP, a few cents is meaningless.

[Beagle]

A 40 million dollar share buy back is immaterial for a 5.5 billion dollar company.

Best Wishes
Paper Tiger

Yeah, Nah, maybe. Its as much a vote of confidence by the directors as anything else. Case in point, (acknowledge the numbers are different) but QAN announced on 25 August 2017 a $373m share buy-back (currently an $11 billion market cap). Only a very small portion of this buy-back has been executed yet their shares have gained from $5.60 at the time to $6.20 today. Coincidence or does it help mop up some of the shareholder stragglers and give a slight undercurrent of positivity and support to the SP ?, you be the judge.

[Snow Leopard]

Yeah, Nah, maybe. Its as much a vote of confidence by the directors as anything else. Case in point, (acknowledge the numbers are different) but QAN announced on 25 August 2017 a $373m share buy-back (currently an $11 billion market cap). Only a very small portion of this buy-back has been executed yet their shares have gained from $5.60 at the time to $6.20 today. Coincidence or does it help mop up some of the shareholder stragglers and give a slight undercurrent of positivity and support to the SP ?, you be the judge.

The evidence of the two prior Qantas buy backs tells you that they have no real effect on the share price.

The usual suspects of fear, greed, optimism, pessimism and even some fundamentals dictate the day to day price.

Meanwhile back at A2 Milk, it is now vying for the No2 spot in my NZX portfolio with Scales.

[Beagle]

The evidence of the two prior Qantas buy backs tells you that they have no real effect on the share price.

The usual suspects of fear, greed, optimism, pessimism and even some fundamentals dictate the day to day price.

Meanwhile back at A2 Milk, it is now vying for the No2 spot in my NZX portfolio with Scales.

I wouldn't be so sure on the former point. The SP buy-back program started in February 2016 when the shares were $3.84 and the shares on issue have reduced by some ~ 10% since then. What I do agree with you on though is that the size of the buy-back if confirmed for ATM is considerably smaller as a percentage of issued shares and all the more so given the rapid SP appreciation. What will be especially interesting is if the directors still propose to proceed with it, (a vote of confidence if they do).
$40m is less than the value of shares that changed hands on the NZX and ASX exchanges in a single day, today.
ATM already my #2 investment position just a fraction behind AIR. If it keeps going the way it is it'll be my #1 investment position by the end of this week.

[Leftfield]

Nice to see both the Beagle and the Paper Tiger on board with the ATM ride and both your portfolio's benefiting.

I'm with the Beagle on the company share purchase argument.... So Yeah/nah.... it's going to be interesting to see what ATM decides, but whatever they decide, we are 'well positioned.'

[hardt]

Think about it, here comes a buyer for 5.2M shares... not significant in itself, in the gigantic ocean of buyers it would add another midsized buyer.

40m div payout would be a solid 5c a share dividend though.. 3% yield for my holding and a lot more for others on here.

[sb9]

Sourced below from HotCopper....expectation of A2M to be included in ASX 100 at Dec rebalance along lines of what was reported the other day in NBR article...

"In this afternoons wrap of the markets in the SMH
Index watch

The A2 Milk Company, which is tipped to enter the top 100 at the December index rebalance, according to broker Wilsons, closed at a record high $6.91, up 3 per cent.
The A2 Milk Company will be into the top 100 at the expense of Vocus or Tatts Group, predicts broker Wilsons ahead of the December index rebalance."

[Beagle]

Sourced below from HotCopper....expectation of A2M to be included in ASX 100 at Dec rebalance along lines of what was reported the other day in NBR article...

"In this afternoons wrap of the markets in the SMH
Index watch

The A2 Milk Company, which is tipped to enter the top 100 at the December index rebalance, according to broker Wilsons, closed at a record high $6.91, up 3 per cent.
The A2 Milk Company will be into the top 100 at the expense of Vocus or Tatts Group, predicts broker Wilsons ahead of the December index rebalance."

Thereby likely garnering much more support than a $40m buy-back lol. The irony isn't lost on me All the proof you ever need that momentum often feeds upon itself and creates more momentum.