ATM - A2 Milk Corporation Limited

[robbo24]

Dannii is so mint I would buy anything from her

[Jasemc]

Possible reasons for price uncertainty into china and lack of news about other markets. Dannie can dead cat me on her tramp any time

[Jasemc]

Yes so I hope they have enough stock in china to cover existing customers and if they do probably means they will need to hold back on growing customers until supply is available from nz? Instead of a statement saying they have planned for this and have enough supply at the moment maybe they could of said how much supply they have in china so we could work out the situation.

[000831]

In fact, Chinese customers never know A2. Ask anyone in China or Chinese in NZ whether they know this company and its products. You get the answer.

[MAC]

As early as January Synlait have told us that they have surplus infant formula production capacity.

“the company may not achieve its forecast target of 10,000 metric tonnes of infant formula and nutritional sales this financial year”.

http://www.nzherald.co.nz/business/n...ectid=11193307

I would anticipate from recent announcements that the A2 milk company may well have been taking advantage of this surplus capacity, getting ahead of the curve, and merrily stockpiling all year thus far.

It seems that Synlait now expect to achieve registration next month once it’s new packaging and processing plant is complete, ATM should come up for consideration at the same time one would expect.

"The Ministry for Primary Industry expects Synlait will receive approval once the new dry blending and consumer packaging factory is built which is scheduled for completion next month"

http://www.scoop.co.nz/stories/BU140...regulation.htm

But at the end of the day, infant formula presently only contributes really very little to ATM’s bottom line indeed, it’s in the low single digit percentages at these very early stages.

A draw down of ATM inventories over a quarter or even two I suspect may have absolutely no impact at all.

Storms in tea cups are one of my favourite buying opportunities.

[Jasemc]

do they have enough a2 milk production to stockpile? But I agree it is a storm in the tea cup and look at buying opportunities as they come like 75c this week. Even though only a small part of a2 the price I think has a big part factored in when it comes to China. North America will be the next announcement I presume?

[MAC]

It’s all good news after a period of watching what oddly and ironically could only ever have been a potential matter of entirely insignificant importance.

The A2 milk company have good inventories, their producer Synlait anticipate a resolution next month, the market now has a schedule which is always appreciated, and we should be confident that Synlait are using all those good Chinese contacts they have in totally smoozing bureaucrats in China in overdrive on ATM’s behalf, because ..... without customers to produce for Synlait are no better off at all. We may also get a further clarifying announcement from ATM tomorrow.

Could be a nice wee bounce and turn around from here given all this was just so ridiculously overdone.

“Currently there are sufficient levels of inventory of a2 Platinum™ infant formula held by our distribution partner China State Farm State to ensure consumer demand in China continues to be satisfied.”

https://www.nzx.com/files/attachments/192961.pdf

[Longhaul]

Nearly put a bid in at 76 again today, buyers were looking very weak. May be a big player looking to gain access at low prices and build a stake MAC.

Wouldn't you be buying into a pretty strong downtrend at the moment? What makes you think it'll bounce soon, hasn't yet hit oversold on RSI?

[iceman]

so what the company want tell you.
As reported we have sufficient inventory for china however because we knew we would not make the registration date we have had to hold back on growth momentum to ensure our current stock levels are sufficient.
Everything going to plan we will get certified.
Not what you want to hear from a company with growth multiple's that are up in the stars.

I don't think this delay (hopefully) in registration will have much effect on ATM (and Synlait). Based on both companies' recent statements they have been preparing for this to happen temporarily, until they get their new factory finished. Then they will have a brand new dry blending and consumer packaging factory, purposely built to export to China and meet Chinese requirements.
Hopefully the market will agree

Maybe a good time to accumulate a little more !

[couta1]

Hey Snapiti you were quite Bullish on this stock a while back,changed your thinking? I'm long with a 92c buy but not worried as long term this current issue will be a non event IMO