ATM - A2 Milk Corporation Limited

[psychic]

so its gone from the micro and added to the small?

[bull....]

be interesting see what happens now that it closed on the uptrend line, a fall would confirm trend down a move higher confirms a false break down

[forest]

Included in MSCI small cap index so that's why we had a rise on big volume. Will see soon if it holds...

MSCI NEW ZEALAND INDEX


Addition ................................... - Deletions
AIRWORK HOLDINGS.................. - ASB CAPITAL PREF
NEW ZEALAND REFINING CO......... - ASB CAPITAL PREF 2
TENON.......................................- THE A2 MILK COMPAN

[K1W1G0LD]

Included in MSCI small cap index so that's why we had a rise on big volume. Will see soon if it holds...

Aah thats RM, (the living Legend) with more unsound advice.

[Joshuatree]

Hey the other reason moose is i bought a 2 litre bottle today to test

[airedale]

Hey the other reason moose is i bought a 2 litre bottle today to test

I have drunk it and liked it. May be that is why support is holding at $.80

[Jasemc]

Yeah I have started buying it tastes nice. But that might be after years of light blue milk because of the boss in the house wanting to be slim.

[iceman]

The competition have been playing dirty! Bet the last thing they would want is this story to be on the front page of the weekend paper online, living on the Internet for ever and ever :-)
http://www.theage.com.au/national/ri...523-38uef.html

in true reverse psychology style, people will now believe that there must be something to A2 if Parmalat had to hire a PR firm and resort to dirty tactics :-)

Thanks for sharing this KW. Great advertising for A2M

[Snoopy]

<snip>
I guess the reality is that at least half the value in the shares is coming from the intellectual property assets rather than the operating business. A much more tricky area to value and requires a bit more knowledge and time. However, unless the IP is sold to a larger entity via takeover or royalty, it is going to require ongoing capital to extract value from it, which would tend to mean ongoing dilution.

Can't rule out a sudden takeover announcement - still small enough that someone might offer a premium to get the IP - but, personally, I don't generally invest on speculative binary outcomes, as I find it too hit and miss.

Snapiti mentioned on another thread the possibility of an A2 takeover. From A2s own front page:

"originally all dairy cows produced milk containing only the A2 type of beta-casein protein"

Snapiti says
"Only way to get your hands on this monopoly is to buy out the company."

I say:

How can a natural product be a monopoly that a company can protect? Granted the A2 brand name has real value, and is a great trademark to have. Perhaps there is some patented technology around the DNA testing that A2 use to identify the right cows? I am not familiar enough with A2 to definitively answer that.

But all a savy US corporation needs to do is to start marketing "natural all American buffalo milk", A2 under another name, and the A2 monopoly ends, as do their US prospects. To me the underlying IP is entirely in the marketing box with little food science that can't be replicated. To me 80c is far too much to pay for just a brand (albeit a very good one) that will require truckloads of new cash to reach its potential. Not saying A2 can't do it. Just saying that there are better opportunities elsewhere for investors than buying A2 shares near current levels (80c).

SNOOPY

[MAC]

this could will be a loop hole snoopy but I am very confident buffalo do not produce much commercial milk per head let alone in total.

There is nothing to stop someone selling buffalo milk of Jersey cow milk for that matter, but they cannot brand any product as being A2, they cannot test the cows or milk as being A2, and thus cannot demonstrate that any product is BCM-7 protein free without legal issue. ATM have enforced their patents successfully in the past.

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