Brutal price reaction...a bit tough I would have thought.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
"This is a result of the new pricing agreement entered into with The a2 Milk Company™ last July, as well as not having the benefit of the higher margin sales to our China based customers that we enjoyed in HY18. These brands are awaiting State Administration for Market Regulation (SAMR) registration."
I'd missed that they were awaiting registration for one of their products...…..
That’s a big worry
Synlait not worth what it is today as a milk processor (the stainless steel that Bell Potter referee to) — the value is in their IP such as these registrations
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Ah well - I had a bad feeling when the new CEO introduced during last years AGM this new colour schema. Is it just me getting goosebumps with that much pink? .
While the new CEO was busy coming up with a pretty new rainbow color, the new CEO of ATM was busy screwing them over on margin.
rediculous multiples for this company look at multiples of comparable to see whre price should be ... heaps lower
Bookvalue $2.62 ....maybe $4.00 at best is fair price for a capital intensive low margin producer (of a commodity product). Discounted Cash Flow with outrageous growth assumptions gives me about $6.50
The IP (registrations) are seen as valuable but latest announcement even puts that theory in doubt.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
The biggest question today that has been revealed by todays ann is its level of cash, will there be a C R is the question that is foremost to my mind, how long will its current cash last before the new factory is generating max cash ?
very much "on trend" at present and so it should be after what happened last week.
Why? Why is diversity even a "positive"? I would put it about neutral myself but forced diversity is almost always negative. Diversity itself if organic is good, but when you force it it becomes counter productive and creates a heck of a lot more problems than it solves.
People generally don't like "diversity" imposed upon them, but they are often pleased by it when they opt in, or when it simply happens to them. The danger comes when life insulates us, either by design or incidentally. The danger of market driven filter-bubbles is immense.
Sometimes I enjoyed this forum..but a lot of rampers that created chaos n make people sell in loss....remember guys..many of people here are also new investors...
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Originally Posted by RTM
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