ATM - A2 Milk Corporation Limited

[Snoopy]

This $3 value is a consequence of supply constraint.

Just looking a little further into the supply constraint issue.

The latest Synlait presentation (27th October 2017)

http://www.asx.com.au/asxpdf/2017102...38tm46qrgx.pdf, page 9

Shows Synlait have 60A2 milk fams under contract, producing 19.8million kg of milk solids.

From this page:

http://www.smartbusinesscentre.co.nz...y-the-numbers/

"20.7 billion litres of milk was produced in the 2014 season, containing 1.8 billion kg of milksolids."

That contracted output should produce: (20.7/1.8) x 19.8million = 228 m litres of milk (A)

Total A2 milk Revenue from "Infant formula" for FY2017: $394.026m (B)

Assuming all A2 revenue from Sylait milk supply is from A2 Platinum, then dollars received per litre was:

$394.026 / 228 = $1.73 per litre

$1.73 is the manufacturer's supply price, not the end market sell price. This represents a 3.5% market share of the Chinese infant formula market (AR2017 p22) for the June FY2017 quarter, up from 2.6% in the June 2016 quarter.



SNOOPY

[couta1]

Looking like another ugly day, see what the Aussies do this arvo.

The Aussies want a bounce.

[see weed]

So this is what they call shaking the tree. They got 23,000 off me this round.

[Nasi Goreng]

Looks to me like its a bit of a battleground at the moment with bulls and bears both getting torn to pieces.

[tipsy]

Day traders must love this stock.

[Nasi Goreng]

Day traders must love this stock.

Some will for sure... others will have been burned really badly this last 24 hours.

[see weed]

Looks to me like its a bit of a battleground at the moment with bulls and bears both getting torn to pieces.

This kitchen is getting too hot for me. Don't know whether I'm coming or going.

[winner69]

Day traders must love this stock.

they are the ones who make this exciting ...... what happens when they find another playpen

[couta1]

This kitchen is getting too hot for me. Don't know whether I'm coming or going.

HaHa, welcome to the world of A2 where the only certainty, is well uncertainty. PS-Youll need your very best oven mitts if you want to stay in the kitchen.

[Leftfield]

This kitchen is getting too hot for me. Don't know whether I'm coming or going.

Me just back from a fab morning mountain bike ride, determined to ignore the market at the moment. My learning - it is almost impossible to pick 'tops and bottoms.' Best to take a longer term view.

Until ATM issues a market update, ask yourself, 'what has changed?'

So I'm holding.