ATM - A2 Milk Corporation Limited

[Akane]

A shame you didn’t think of that before you invested. I guess if you hadn’t lost 40% your feelings would be different.

Plenty of companies can be easily replicated but are still success stories and bring incredible returns for share holders, I’m thinking banks, insurance companies, bakeries, actually nearly every food producer.
You may have heard of Graeme Hart, NZ’s richest man made a good chunk of his fortune from Goodman fielder who believe it or not make bread. You realise how easily you can bake bread? It’s all about marketing and branding these days.

I've said that over and over again that ATM is overvalued, but then again and again the market has "proven me wrong", so as any sensible person would think - Hey Mr Market disagrees with what I believe, maybe I'm wrong and Mr Market is right.

So I buckled and followed the crowd, and here I am.

[Sideshow Bob]

From Farmers Weekly:

Daigou dragging a2 Milk down | Farmers Weekly

[Gregnz]

I've said that over and over again that ATM is overvalued, but then again and again the market has "proven me wrong", so as any sensible person would think - Hey Mr Market disagrees with what I believe, maybe I'm wrong and Mr Market is right.

So I buckled and followed the crowd, and here I am.

You’ve heard of Covid right? It’s this one in one hundred year event the world is experiencing. The share price hasn’t dropped simply because the market thinks it was over valued.

[Balance]

From Farmers Weekly:

Daigou dragging a2 Milk down | Farmers Weekly

Excellent summary of the situation.

[Ruby]

For sure,but my point is Apple is more about the brand...many phones have Apples features,but don't cost as much...but people keep buying them.
People buy Volkswagen vehicles when they could buy rebadged Skodas & Seats for a much lower price.

[Ruby]

"..A2MC seems to be facing declining demand and loss of market share overall and it is unclear when or if this will reverse."
Any facts to back this up?

[Gregnz]

"..A2MC seems to be facing declining demand and loss of market share overall and it is unclear when or if this will reverse."
Any facts to back this up?

The last I heard the number of mother and baby stores A2 had expanded into in China had increased from something like 15,000 to nearly 30,000 stores, and their China sales were up 40%?

Unsure how that could lead to declining demand, but oh well each to their own I guess. Gotta sell headlines somehow.

[Balance]

"..A2MC seems to be facing declining demand and loss of market share overall and it is unclear when or if this will reverse."
Any facts to back this up?

ATM is blaming almost all the decline in sales on the daigou situation.

The question you should be asking imo : is that really the case or is the daigou situation being used conveniently by management to cover up for other issues?

The aggressive selling of shares by management and directors will be topmost in the mind of many a wary investor for a while yet.

[Akane]

You’ve heard of Covid right? It’s this one in one hundred year event the world is experiencing. The share price hasn’t dropped simply because the market thinks it was over valued.

My gut feeling is that COVID has not impacted as much as they say. There are still legitimate channels for the Chinese to get their hands on A2, in my perspective if I wanted to get A2 milk and my Daigou don't have stock, I'll just buy it through legitimate channels - that is if A2 is worth my hassle. If I switch to another brand instead (which is the message that others are trying to convey), then maybe A2 milk is not as important as one would think and it can be substituted by other brands that's more readily available.

[Ruby]

My gut feeling is that COVID has not impacted as much as they say. There are still legitimate channels for the Chinese to get their hands on A2, in my perspective if I wanted to get A2 milk and my Daigou don't have stock, I'll just buy it through legitimate channels - that is if A2 is worth my hassle. If I switch to another brand instead (which is the message that others are trying to convey), then maybe A2 milk is not as important as one would think and it can be substituted by other brands that's more readily available.

Wrong post,sorry.