Would'nt bank on it blobbles, whoever the seller is I think they have lost faith and are looking at cutting their losses IMO. If it is AMP they have a lot more to go!
Of more importance though is who is picking them up?
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Would'nt bank on it blobbles, whoever the seller is I think they have lost faith and are looking at cutting their losses IMO. If it is AMP they have a lot more to go!
Of more importance though is who is picking them up?
I agree. Who is buying is more of a interest. No ssh notice so i wonder.
There is a difference between passive and index funds. Passive means that they are not going to manage the portfolio actively but rather strategically.
If they were going to run it as more of an "index fund" then they still have about 35 million shares odd to get rid of because ATM would not feature in the top 50 funds by capitalisation. My take on this is that they will keep ATM for the long term, but just what % is open to speculation.
Ziggy and Harrie
When I checked a while back ATM was not only in the NZX 50 (which it still is) but was actually in the top 30 by market capitalisation. It's cap ranking will have dropped since then, especially after the state-owned energy floats, but it's well up there. Or am I missing something? It seems to me that ATM has to be part of a lot of holdings.
That is correct NT, it is in the top 50 but is at No 50 but that is based on 58c, using the latest info I can see.
Having said that only an index fund may choose to use it although "index" funds do not necessarily follow the index faithfully. Even so at number 50 the exposure would be stuff all to a raspberry, however better at No 50 with exposure to all index funds than not at all!
If AMP is being "strategic" rather than "active" then the index following is not really relevant to them. Its just a matter of how strategic they want to be with ATM.
Thanks Harrie
Interesting that ATM is just clinging to inclusion in the NZX50. I wonder if the buyers and sellers in the 58-60c range may have been managing the SP partly to just keep it within the Top50. They've adhered pretty religiously to that level. Even though not all the index funds stick firmly to the index as you point out, could there possibly be benefits to some portfolio managers in not letting ATM drop out of the top 50?
Could be a bit of a problem for ATM investors if fund managers religiously followed the index method on the NZX50 NT. At 58c its on the cusp of moving off the NZX50 index. With something like ATM where a few cents could be the difference between retaining or eliminating the stock in an index following fund, with all the transaction and record keeping this would require, its hard to say what the reaction would be. I'm not too sure we should be overly worried about it though as if this did happen, some positve forcasting at the AGM could easily move it back on to the NZX50 index, all it does is increase the volatility of the price depending on how much weight the index funds have in the marketplace.
Here's a bit of good news to cheer those who have been worried that nothing much is happening in Britain to get A2 Milk and its message out to the public there.
http://www.foodbev.com/news/a2-milk-...e#.VGMcD2dqPsw
Hmmm, expansion to a ‘nationwide’ Sainsbury's listing is really very positive news in itself.
“First to reveal the brand repositioning and new-look 1-litre bottle in-store is Sainsbury's, having secured a new nationwide listing”.
And crumbs, no holds barred marketing, easy to see where that £3m will go.
“The multi-channel trade and marketing activity will include shopper marketing, PR, social media, digital activation and a website relaunch supported by high-profile media doctor Dr Hilary Jones. A disruptive 'Welcome Back to Milk' TV, radio and digital content campaign will launch in January 2015”.
Yes I think it's a very well thought out strategy, which is hard-driving yet avoids going head to head with DairyUK and the mainstream suppliers. Plus, the PR release itself gets the key messages across very clearly, and succinctly explains the essential science. Brilliant.
Incidentally, Dr Hilary Jones is a "he" and is a big name on both radio and telly (ITV’s Daybreak and Steve Wright’s Radio 2 programme). He's very committed to explaining to his audiences the differences between A1 and A2 and why those who have problems with standard milk should try switching to A2.
And wow, I also like the Sainsbury's price - equivalent to about NZ$2.80 a litre. Should be a few pence margin for ATM in there somewhere.
Thanks NT...... Finally someone has been listening! I have harked on about this in many posts, its such an obvious market to get some early runs on the board IMO. Maybe we should now start seeing a bit of boing MAC? Best news for a long time. Be interesting to get a bit more early traction signs at the AGM too MAC
There we go again...right on 5pm a lump of shares are purchased and sold. This seems to me that the buyer is quite happy to sit around picking ATM up at 59 and 60c as long as there is someone out there willing to sell at those levels. Still think AMP is selling down to meet a mandated target, just a matter of when that target is reached, before buying pressure comes in. Buyer playing a pretty smart game at the mo, but would need to be cognisant of making sure he can fill the order book at these prices before any real buying pressure comes into play. Keen to see what happens next week prior to AGM.
Never seen such a flat stock out of the penny range with such tight BBs! I'm wondering why the brokers don't just try and settle this off market after watching it go on for so long...
Here's a good background article from a British farming publication that explains the non-mainstream milk market that ATM is on the point of re-entering via Sainsbury's and others. It looks specifically at raw milk, organic milk and A2.
http://www.farmersguardian.com/home/.../68531.article
Everything is ominously quiet considering tomorrow is the AGM. What issues are going to be raised?
Often you get some sort of signal via price movement and No of shares transacted a few days before an AGM if there is good or bad news. No much evidence of either so far....Hmmmm!
Hopefully MAC will come through tomorrow with some insights following the meeting.