ATM - A2 Milk Corporation Limited

[roaddog]

Whats happening with this company Dudes [?]any of you dudes got any views on A2 Corporation Limited [?]

[Enumerate]

The share consolidation has been a bit of a disaster falling from $0.40 (or $0.08 per old share) to about $0.20 (or $0.04 per old share).

No news about the IdeaSphere payment of US$400,000

Classic situation - gloom and despondancy grows around the perception that a small biotech is failing to make revenue targets.

Further, Jim Guthrie has resigned at seeming short notice from the board due to ill health. It seems being an ATM Director is a very hazardous occupation.

More gloom and despondancy that maybe the firm leadership is not stable and strong.

Next opportunity for an information update is the agm on the 29th June.

Prognosis: gloomy with outbreaks of despondancy until either the new strategy seems proven or fails. The share price will either go up significantly or go down significantly - cannot see it staying where it is much longer.

[whatsup]

@/1 renounceable issue :whats the deal & thaughts:is ATM worth it anymore?

[Enumerate]

The following link is a good summary of the science behind A2 Corp:

http://www.lincoln.ac.nz/amac/woodford_pdf/a2milk.pdf

There is good cause to consider the A2 Corp patents may be of significant value.

However, the A2 Corp business is another question (or mystery, as the case may be). The next "strategic" plan promises a profit in three years. The price is a $5mill capital raising.

[Enumerate]

For the life of me, I cannot understand why Fonterra are not interested in this company. There is about as much evidence that A1 milk is "bad" as there is that smoking is "bad". Imagine the global competitive advantange of selling A2 NZ Milk products with the current weight of scientific evidence behind it. Milk into asian markets is promoted as a "health food" - asian families target their young with "healthy" milk compared with traditional diets.

Why doesn't Fonterra see A2 Milk as a marketing goldmine?

[whatsup]

Enum---, because its(A2) is some one elses business,a nd the reason ( most probably that A2 was set up in the first place ) was in the hope thar Fon---, would make a play/takeover for it which is/was what the promoters were/would be hoping for in the first place!!! Does that make sence?

[Enumerate]

I read in the press that the health status of recent asian immigrants has deteriorated significantly upon entry and domicile in New Zealand. Since the health status of these individuals is very carefully established, this is an excellent source of information on factors which may degrade the health of populations.

One factor could be the change in diet. Specifically, non-A2 milk.

Isolating this factor is very difficult (given how non-A2 milk proteins are pervasive in our modern diet of processed foods). However, as an indicator, this study may be quite useful.

[Enumerate]

A2 LAUNCHES MILK INTO LUCRATIVE US MARKET

Major Supermarket Chain Hy-Vee to sell a2 milk(TM) across US Mid-West.

Auckland, 24 April 2007 - A2 Corporation announced today the inaugural launch of its premium a2 milk(TM) into the US market through an exclusive deal with a leading supermarket chain.

A2 Corporation's United States subsidiary, A2 Milk Company LLC, in partnership with Original Foods Company LLC, will launch its value-added a2 milk(TM) product through the leading US supermarket chain, Hy-Vee, which has stores throughout the Mid-Western states comprising Nebraska, Iowa, Kansas, Illinois, Missouri, South Dakota, and Minnesota.

Hy-Vee has sales of more than US$4.6 billion and more than 200 retail stores across the seven Midwestern states, and ranks among the top 15 supermarket chains in the United States.

Anthony Lawler, CEO of A2 Corporation says the launch of a2 milk(TM) into the United States is a major platform for growth and follows several years of solid preparation.

"A2 Corporation is very excited to now have its milk product available in the US market which holds tremendous promise for revenue growth and for expanding our business in one of the biggest consumer and beverage markets in the world. We are also very pleased to have achieved entry into the lucrative US market according to the time frame we set last year and look forward to increasing our share of the market as US consumers develop a taste for a2 milk(TM)," says Lawler.

Tim Thietje President of The Original Foods Company says that the company is glad to be the first U.S. based company to partner with A2 to produce a2 milk(TM) for sale to American consumers.

"After two years of planning and hard work, The Original Foods Company is very excited to launch The Original Foods Company a2 milk(TM) into more than 200 Hy-Vee Food and Drug stores across the Mid-West. a2 milk(TM) delivers on our mission to sell premium quality, natural and functional foods, and our close working relationship with A2 and Hy-Vee supermarkets offers the opportunity to work with partners that share our vision," says Thietje.


Lawler also says that the launch of a2 milk(TM) into the US follows a concerted programme to develop the market which the company has been working on for some time and which it plans to extend beyond the Mid-West. Lawler would also like to thank Ideasphere Inc. (A2 Corporation's joint venture partner in USA) whose effort, support and expertise has been critical in the a2 milk (TM) launch.

Cliff Cook, A2 Corporation's Chairman stated that "the company now knows the US beverages market in detail via consumer and market studies as well as in depth discussions we've had with producers, distributors and retailers. We look forward to extending a2 milk(TM) beyond the initial select market of the Mid-West into other parts of the US which provides the best business environment in the world to grow our product."

ENDS

[D_Pick]

Are Kiwi's big drinkers of A2 milk? I must try some if I can find it in Wgtn

It appears A2's biggest market is currently Australia although not a profitable operation historically.

From A2's last few annual reports they haven't managed to generate any significant cashflows or profits for the last six years.

Can anyone see 200 outlets in the US changing this?

What revenue size could A2 grow to in the next 5 years? $10 million sales?

I can't see any significant cashflows/profits occuring in the short term (next year or two).

As a negative overhanging the shareprice is the dilution effect of this years proposed rights issue (yet to be outlined in detail but announced in the interim report) for X amount as they need additional capital to strenghten their balance sheet and to further market their products.

Interesting product and Patents but execution into a healthy business with strong cashflows and profits has yet to occur after six years in the development phase.

[Enumerate]

quote:[i]Originally posted by D_Pick
Are Kiwi's big drinkers of A2 milk? I must try some if I can find it in Wgtn

The sad thing is that it looks like Foodtown/Woolies have discontinued sales of A2 milk. Maybe Foodstuffs continue to stock?

The tragedy is that there is as much evidence that A1 milk damages your health, in scientific terms, as there is that smoking damages your health. (If you give credence to epidemiological studies).

Andrew Ferrier - who used to market one form of "white death" and now markets the other - take note!