That wouldnt require a trading halt. My crystal ball says its something positive.
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Maybe they have received a takeover offer or are planning to take over another company.
It's something BIG!
very bad if its a big take over and a delisting.. NZX needs every company like this it can get.. Xero was a big loss and just shows what happens.
High likelyhood of a takeover offer.
my thoughts are a chinese player or Nestle.
highest odds are chinese firm IMO
i would not consider any offer lower than $24 nzd
It will be Big, and a takeover.
Not of ATM tho, BGA, Bega on ASX,
Grab them while they are cheap, compared to 5 yr graph.
hope its not a freedom foods
Trading Halt maybe till Monday.................how much news is there
New partnership for US IF entry or Takeover ..... my pick
Would have to be a hell of a negative to bring on a trading halt wouldn't it, especially this soon after the AGM? But then reading Ggcc's response below, I guess that's a possibility, but again, it would have to be huge, right? It's gonna be interesting. Either I'll be happy I reduced my holding recently, or I'll be peeved!
trading halts for financial performance
The trading halt is requested pending a further announcement concerning its financialperformance -- this from freedom foods announcement , so most likely a takeover or a financial performance issue
Yeah, I agree. It's a longshot
Far more likely A2 received a takeover offer and need to time to formulate a response
Share price is massively depressed. This is a prime time to make an offer
I toyed with selling down at the market highs and didn't. Coulda shoulda woulda
I would want $20+ to exit
Where does it say that about the financial performance? I didn't see it in the announcement
Or are you speculating that there is a significant downgrade possible:?
https://announcements.nzx.com/detail/365192
The chart does not give much away, would have expected some leakage.
A2 management have always been very good at keeping information close to their chest. They probably received a takeover offer yesterday afternoon or early this morning. Doubt anything has leaked
Wish all the Holders the very best .
DISC: we were waiting for all the silly china stuff to blow over before buying in again. Aus ministers were making waves about china needing to learn about how to trade with the world.
For all those people new to share investing, the number of times you will get hit like this with trading halts and take overs are good practise for your stomach....
Im sure this time its good news for your value holdings. We hope...
Freedom Foods look like they were considering divesting their losing cereal & snacks divisions and doing a capital raise. This leaves their dairy division primarily.
ATM takeover of FF Dairy ? FF do A2 Protein milk also...
its a futures adjustment day so all asx stocks will show funny quotes before the open
ASX announcement says it's around guidance. Must be a shocker.
For reference the last time trading was halted was for a capital raise in 2015. I went back and checked
needless to say the company has had huge changes over the past 5 years so one would think the need for a trading halt now must be quite an elephant.
Where do you see that...?
https://cdn-api.markitdigital.com/ap...df02a206a39ff4
This says that it's "pending it releasing an announcement"...
Doh, yup - I should have read the whole thing...
Looks bad now :(
So whose this guy dumping their shares before the announcement? Insider trading?
reminds me of the bellamys downgrades price fell 50%
Readers of this thread will know that I have been saying for quite some time now that I have been very skeptical indeed about their ability to deliver on second half guidance. I received widespread aggression towards me as an independent observer with no position for calling it as I see it. I tried to warn people but because I got such a kicking by so many people my approach will be different going forward. People who take extremely large positions have to realise they only have themselves to blame if the custard hits the fan.
I've always planned to hold this long-term anyway but I wouldn't like a sharp correction in my portfolio.
instead of taking over freedom foods, maybe it is similar to freedom foods... ie they've suddenly realized there's a whole lot of 'accounting discrepancies'... not sure why a halt would be in place for an update around guidance unless it was majorly bad... Ironic as just a month ago at AGM I thought everything was all good...
Looks like news may not be ..........promising
Maybe they have just discovered another QEX style warehouse clearance...
This looks like very bad news.
I will hold through it but I considered selling earlier this year and now... 20/20 hindsight. Should have unloaded at the high
Live and learn
Hopefully (not a strategy ) this is a temp blip and next year there will be millions of extra babies as a consequence of 2020 Lockdown with a massive increase in demand for IF & A2 milk.
Looks like it's a revised guidance. Oh noooo.
A2 Milk has called a trading halt ahead of a release relating to earnings guidance.
The dairy products group said: "We have become aware of information which may require us to release an announcement to revise our previously issued guidance to the market."
"We are requesting a trading halt to provide us with additional time to properly consider the current information and to consider new information as it becomes available, and inform the market."
Well I'm still looking to get in so I guess this has happened at the right time for me haha!
Very odd that info comes so soon after the AGM. There hasn't been sufficient time for anything to drastically change. I've read the ASX announcement, it does say revise previously issued guidance. I'm reading it as a negative, but is there any chance that it could be a guidance improvement?
Balance as usual is right, downgrades almost always comes in 3's.
A shame. Going to put this stock in the bottom draw and look at it in 2 years time
My best guess is a major downgrade and perhaps discontinuation of the Daigou channel?
Oh well looking to the future now taking into consideration that the guidance is worse and the SP drops to say 12$, when everything is behind us and the recovery begins I'm sure will see a good recovery.
Personally I think we are reading too much into this, me included. "We have become aware of information which 'may' require us to release an announcement to revise our previously issued guidance to the market".
"May" , that word to me suggests it's not a guarantee. Perhaps its news that they cant yet confirm, wonder if the China tariffs etc have finally hit NZ? But wouldn't that be in the media if it was happening?
Probably a further continuation of this deteriorating situation reported in September as fresh Covid outbreaks caused more lockdowns in Victoria.
https://www.afr.com/companies/retail...0200928-p55zt1
On the plus side, in 12 to 18 months time, these problems should all be behind us and full steam ahead.
SP depends to some extent on how far ahead people are looking.
"accounting discrepancies"
was anything tagged in the auditors note?
surely this is a take over else why halt for 2 days plus a weekend.
Anyone have what they think is an accurate NTA or nearest call ?
Its certainly a marketing lesson and have done well considering the results of some other players.
A company from NZ taking on the world.. Fonterra certainly made a mess of it..
Not surprised as i remember meeting the then head of diary farming association as a young farmer in the central north island.. No training in financial farm economics that i could see at the time.
No comprehension of the layers of statistical reporting infrastructure required to protect diary investments to let farmers get there debt levels in check.
Now these same individuals at sit the top table of dairy farming representative organisations...
Well, that's certainly got people chattering.
Unfortunately no substance so we will have to wait and see.
Whatever the announcement is, it will be very positive or very negative as that's what trading halts tend to be.
Holders will need their worry beads on the one hand and chill some good French champagne in the fridge with the other!
Time for
HOPE - it's going to be okay,
GREED - it's a takeover by the Chinese or merger,
FEAR - another profit downgrade or law suit over claims of A2 protein benefits in the US.
SML sp has dropped so some in the market are in fear?
I wonder if another possible explanation for the "may" could be that they feel the current share price already caters for some expected negativity (it's ~50% from here to its recent high) and they are thinking, well, the market has already downgraded us... Yeah, but, nah, but perhaps the market hasn't quite factored in just how negative this is, hence the "may" or indecision about if they need to release this little bombshell.
For it to bring on a trading halt though, how bad must it be? How long does the marketing department need to put a positive spin on it? Don't they know that everyone else knows that bad news comes in threes haha and to just tell us already?
Ok, I really want to know what it is!
My educated guess would be their guidance didnt factor the dollar being on such a bull tear and it will result in a material downgrade.
If this was a takeover or merger, wouldn't this announcement make reference to it? There is no reason to withhold the information once the trading halt is in place?
I once had to wait 3 days as a 19y old about a cancer prognosis = luckily negative
I once had to wait 7 days to find out if my wife makes it + she didn't
Waiting to find out whether I have less or more money than before is just noise.
My 2c is that it will be something which will require some detailed modelling inside the company and figuring out what a changing market looks like for margins etc:
- diagou channel being blocked
- china announcing it will look to diversify IF sourcing away from Oz / NZ
Normal market erosion of gross margin, or a strong dollar, wouldn't require such a long halt.
Other possibilities are:
- some sort of recall of product due to harmful XXX discovered
- sharetrader members too heavily invested and fate intervenes etc
shorters might be popping the champange on monday
Makes sense but a trading halt?
I confess I didn’t factor in the NZD USD exchange rate. I have USD that I want to bring back to New Zealand and it’s not making me happy. I brought back $20K at $1.52 but now it’s $1.41 which makes for a big loss on the remainder. I can only imagine the effect on a company the size of a2
If it is something China related we will have an interesting dilemma (also facing this with TWE on the asx).
Great company shut out of its major market for who knows how long. Much lower margins in other countries.
Hard to buy in these conditions until clarity is acheived.
Not going to be the exchange rate. Announcement says "we have become aware"
This stock has a "cult" following. In effect its the "Tesla" of the NZX. You're not the only one that's been shouted out of the room I can assure you.
I came very close to leaving this forum because of the aggression and abuse I got in here for posting objective independent thoughts when I wasn't holding a long or short position.
There is no room in here for objective debate and those that made this thread that way will likely get their just "reward" on Monday.
Since when is appearing for a round of 'I told you so'' posts objective debate?
The 'just reward' line doesn't sound very Christian.
Guys, noob questions... When this puppy comes out of halt, I guess it would need to be at a time when both markets are open, no? Does there need to be some advance warning when it's about to happen? Like a premarket type period, or something like that? Cheers
Trading Halt until Monday 21/Dec.
INTERESTING ...
Never say never but its extremely rare that I buy a stock in a well established downtrend. I note that very basic technical analysis, (selling when it broke down through the 100 day MA) would have got people out at ~ $20. When a confirmed bottom is in the share price and a new uptrend has emerged (as evidenced most likely for me by a break up through the 100 day MA) I will have another look at the fundamentals.
At this stage the best case scenario I can foresee is for a meaningful eps decline in FY21 followed by a a much slower rate of growth going forward. I won't pay a PE in the mid - late 20's for very slow growth. I believe in owning GARP stocks. Growth at a reasonable price. The metrics on this stock would need a pretty dramatic reset for me to own this again.
The extent of the insider selling and the way the 2021 downgrade process has been apparently so very carefully crafted to avoid any realistic chance of any insider trading action being successful is something else that on the face of it raises some serious concerns, at least in my mind and makes me very wary about this one in the future.
I’m not convinced about the cult following. At least, not for me personally. I bought a long time ago when it was around 40 cents and held long before it was a popular or trendy stock. Never really looked at it again. Effectively bottom drawer it.
A few months ago I started looking and questioned future growth and competitors but inertia set in before I finished Investigating. I didn’t even lurk in these threads for barking dogs! That would probably have been a good time to sell but I didn’t so I will await the results and go from there.