Simple reason - a few months ago I sold all my ATM & put it all into SML. Always happens.:eek2:
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Wow!
Not a single comment yesterday even as ATM moved relentlessly towards its previous high since beginning of the year.
Maybe the shorters are rather quiet after feeling the 'burn' as A2M has put on A$1.89 since Dec 31st and on short positions of 50m shares, that's a burn of A$94.5m in a month.
So here's waiting for the panic covering which should take A2M back to previous high when it reports its 1h19 results.
https://www.fool.com.au/2019/01/30/w...ice-was-a-buy/
Good summary of why A2M is indeed an outstanding story.
Meanwhile, UBS joins the upgrade party but behind the curve on valuation.
A2M – UBS rates the stock as Neutral By Broker News on 31 Jan 2019
In the wake of in-house research into the Chinese infant formula market, the broker is more cautious on market outlook but positive on a2. The company is expected to outperform and gain share given its product is the highest regarded yet under-penetrated, and there is scope for price increases. The broker lifts its target to NZ$12.80 from NZ$11.80 while retaining Neutral.
100% A2 Is the highest regarded IF product with Chinese consumers.
Interesting to note it is also the most expensive already, room for price increases will be needed when volume is reaching maturity.
In China the less your poor neighbor can afford something the more desirable the product is for those that can.
It is a class status to be able to afford the best for your little emperor.
There is a lot more.money on the table within China. Not sure when the party will stop but my own anecdotal evidence suggests it continues to grow.
Shorts have reduced by 3m shares since beginning of 2019.
Still 47.448m shares to cover.
Looks like we will see ATM sp at $13 today?