ATM - A2 Milk Corporation Limited

[winner69]

When is MSCI thing happening

Need something to get back over 14 bucks heading towards 15 bucks

Phenomenal performed already priced in I fear so these external factors to give the share price a decent bump.

Been a bit slack the last 2 months or so hasn’t it.

[Beagle]

When is MSCI thing happening

Need something to get back over 14 bucks heading towards 15 bucks

Phenomenal performed already priced in I fear so these external factors to give the share price a decent bump.

Been a bit slack the last 2 months or so hasn’t it.

14 May announcement, takes effect 1 June.

[winner69]

14 May announcement, takes effect 1 June.

Rumour/speculation or a given

How much of a boost will it give the share price?

[couta1]

Rumour/speculation or a given

How much of a boost will it give the share price?

Almost certain IMO, NZ's biggest company will have to take the place of MCY, index funds will have to buy in and the other companies will have to be rebalanced, ie sold down. SP will increase after the announcement, but race day will be June 1st.

[Beagle]

Rumour/speculation or a given

How much of a boost will it give the share price?

MSCI Index inclusion is a given in my opinion. Its hard to answer the latter question but 5 - 20% is my best guess.
I'm not pulling that 20% out of thin air. Fact is CVT and PPH both went up ~ 20% when they went into the NZX50 so index inclusion can have a serious effect on the SP.
Also with ATM being NZ's biggest company I would expect a large percentage allocation in the MSCI so we could see really substantial buying.
A new all time high wouldn't surprise me on 1 June.
I also think a lot of weak hands sold in the recent high volatility so we're down to the committed holders now
That said this index change has had a very fulsome discussion in the media and on here and one wonders if some of the potential gain isn't already in the SP.

[winner69]

Almost certain IMO, NZ's biggest company will have to take the place of MCY, index funds will have to buy in and the other companies will have to be rebalanced, ie sold down. SP will increase after the announcement, but race day will be June 1st.

So race day share price at least $14 and if I was as bullish/exhuberent as sb9 pretty close to $15

Sounds cool

[RupertBear]

MSCI Index inclusion is a given in my opinion. Its hard to answer the latter question but 5 - 20% is my best guess.
I'm not pulling that 20% out of thin air. Fact is CVT and PPH both went up ~ 20% when they went into the NZX50 so index inclusion can have a serious effect on the SP.
Also with ATM being NZ's biggest company I would expect a large percentage allocation in the MSCI so we could see really substantial buying.
A new all time high wouldn't surprise me on 1 June.
I also think a lot of weak hands sold in the recent high volatility so we're down to the committed holders now

Hmm that will create a dilemma, whether to sell if an all time high is reached, or continue to hold what is a stellar stock for the long haul. Given the high volatility of this stock it will be tempting to sell and buy back when the price drops....assuming it will! Hmmm

[Beagle]

Hmm that will create a dilemma, whether to sell if an all time high is reached, or continue to hold what is a stellar stock for the long haul. Given the high volatility of this stock it will be tempting to sell and buy back when the price drops....assuming it will! Hmmm

The danger if you sell is the company issuing a sales update later in June, (keep in mind their continuous disclosure requirements) and then you're snookered.

[forest]

Hmm that will create a dilemma, whether to sell if an all time high is reached, or continue to hold what is a stellar stock for the long haul. Given the high volatility of this stock it will be tempting to sell and buy back when the price drops....assuming it will! Hmmm

How would you feel if you out of ATM shares and you read a future announcements from Nestle, something like;

Nestle has secured a mayor new contract to produce a number of products for the A2 milk company in NZ. The board of Nestle is very pleased with entering into this new relationship and we expect this will help us with our growth in the coming years.

Maybe unlikely but who would have thought Fonterra would be a manufacturer for ATM a year ago?

[RupertBear]

The danger if you sell is the company issuing a sales update later in June, (keep in mind their continuous disclosure requirements) and then you're snookered.

I have been snookered before selling a few at $6 what was I thinking! Think I will hold onto what I have and maybe add to them on any weakness