ATM - A2 Milk Corporation Limited

[HKG2301]

You could say the same (ignoring their brokers’ valuation of A$12.50+) about the clients selling out big time?

Market will do what the market always do - interplay of conflicting short term sentiment sending the stock one way or the other.

Indeed. For every buyer there is a seller and vice versa...

[Biscuit]

....The company does have a large cash balance which provides the option to help market confidence with a share buyback — this is “being considered”.]

I've seen a few share buy-backs and don't remember any of them having much of a positive effect. I would be surprised if ATM did a share buy-back to be honest and they can hardly be taken seriously suggesting the market has mis-priced the company given they seem to have so little handle on their own revenue.

[macduffy]

The effect of a share buy-back often takes a while to be apparent in the SP - sometimes it just doesn't - but sharing profits among a smaller number of shares is still beneficial!

[Biscuit]

...sharing profits among a smaller number of shares is still beneficial!

Yes, that is true. I don't approve, but then I don't have to.

[winner69]

If they do a buy back might be one of those where every shareholder participates

[Balance]

If they do a buy back might be one of those where every shareholder participates

That’s a share cancellation.

Personally I think any kind of buyback or payment of dividend will not be a good move - distracts from the ‘growth’ story. Could lead to a PE contraction.

Tough it out - fundamentals will ultimately prevail if the management and directors believe that the reduction in earnings growth is short term, let the market do what the market does.

Plus, a lower sp will give management & directors a lower entry point for their options or better still, for them to buy heaps of ‘cheap’ shares.

[winner69]

That’s a share cancellation.

Personally I think any kind of buyback or payment of dividend will not be a good move - takes away the ‘growth’ story.

Could lead to a PE contraction.

Financial engineering (OK capital management) rarely turns out as people think it will

And yes a share buyback often leads to a PE contraction

[Gregnz]

Interesting viewpoint from HC, as others have pointed out, any such news would see short positions basically incinerated.

"Contrarian view, but my belief is CAHG is gearing up to purchase a stake in a2(10-15%). Very similar to when Coca Cola purchased a stake in MNST. The fact a2 bought 75% of MVM even more so validates the rationale, along with the large push into MBS stores by which WE both benefit. Management will be privy to this information which is why a buyback or insider buying hasn't occurred. This has the potential to create an almighty short squeeze(APT/Tencent)."

[dibble]

Financial engineering (OK capital management) rarely turns out as people think it will

And yes a share buyback often leads to a PE contraction

Yes, just jiggery pokery, the company merely decides what to do with money that might otherwise be yours via a dividend. Which perhaps begs the question, if they think they can do better with the money than pay it out as a dividend, is that insider trading?

[Balance]

Interesting viewpoint from HC, as others have pointed out, any such news would see short positions basically incinerated.

"Contrarian view, but my belief is CAHG is gearing up to purchase a stake in a2(10-15%). Very similar to when Coca Cola purchased a stake in MNST. The fact a2 bought 75% of MVM even more so validates the rationale, along with the large push into MBS stores by which WE both benefit. Management will be privy to this information which is why a buyback or insider buying hasn't occurred. This has the potential to create an almighty short squeeze(APT/Tencent)."

Pardon my ignorance but who is CAHG?

BTW, you have not replied to how posters in HC are able to identify Ord Minnett as the huge buyer of millions of shares - genuinely interested to know as I have not been able to obtain said information from my broking sources since trades and depth were made incognito years ago.