Fair enough NT, The link you posted makes the point very clearly, Thanks. I guess its just a matter of exposure and different ways of getting that info out there which hopefully is part of the a2mc marketing strategy.
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Fair enough NT, The link you posted makes the point very clearly, Thanks. I guess its just a matter of exposure and different ways of getting that info out there which hopefully is part of the a2mc marketing strategy.
They sure are getting some good exposure over in the US, hopefully that will translate into decent sales and a nationwide deal for a big supermarket... that will be at least a year away though IMO.
a2mc opened up 20 farms for conversion in the UK when they entered, it would be interesting to know how many will make the switch in the US.
I would agree though, the Australian and US west coast markets are probably the most similar in terms of demographic target market, lifestyle, and available disposable income for general health and wellness.
And, given that the hard yards in proving the FMCG business model have been well honed in Australia now, and the market similarities, and the ability to finance for a faster expansion, I wouldn't be at all surprised to see a2 take off faster in the US than it did in the early days in Australia.
That's not to say it will go straight to 9.3%, but the company is positioned for a damn good kick start.
Would like to see them selling in Californian Costco stores soon too like the do in Australia now.
Interesting reference to the Ballamy's IPO, that seemed to go ok;
http://www.fool.com.au/company/?ticker=ASX-BAL
Baby formula and natural/organic foods seem all the rage with investors at the moment so maybe that enthusiasm will spill over into A2M when it gets listed on the ASX. There certainly appears to be a buzz around its listing in Aussie. Looking at Bellamy which does not operate in the UK or USA, I see that their SP has moved upward by ~70% in the last 3 months and freedom have gone 300% over ~3yrs albeit settling down to the same SP over the last year or so. IMO all this is likely to auger well for its listing on the ASX, its becoming a well recognised brand. Most serious investors and institutions will know and will have read about it. Brokers will also be informing their clients about it.
The comparison to Bellamy's is interesting. Probably very similar yes...
ASX.BAL = 95m shares @2.89 = ~275m MCAP. This is based on 141% current growth rate and $116m revenue (they have a small profit but like ATM are investing for growth). Current revenue multiple = 2.37
ATM = 660m shares @55c = ~363m MCAP. 38% current growth rate on $154m revenue. Current revenue multiple = 2.36
Interesting how the two align so closely in terms of revenue multiple, me thinks that's not just luck. Arguably ATM has the greater market oppourtunity supplying "standard" milk rather than organic, which would account for negligible difference regarding growth rates.
It does show what we all know already also in that the ASX recognises the value in growth stocks more consistently and efficiently than the NZX does.
It may not be an IPO for ATM, but may as well be with 20M AMP shares available to the highest bidder, so well, let's see how it all goes on listing day.
There is a thread for Bellamy's here
http://www.sharetrader.co.nz/showthr...BAL#post559850
I think it is a good comparison. Bellamy's profit is growing with its revenue. I wouldn't say that a2 is any better value than BAL. BAL has grown it's profit along with it's revenue and its growth profile is as strong as a2.
Both companies have conquered Australia. Both are expensive on a pe basis and I think are valued high because of their potential in new territories.
I own BAL , not ATM
Another comparison:
Distance from broker targets
ATM 40%
BAL -10%
ATM wins!!!
Yes the comments were indeed interesting and mostly pretty sensible. But the website didn't publish my comment, which pointed out that the idiot journalist (I didn't call him that) who wrote the story hadn't done any research that would have answered his question - what's the story with A2 milk?
Instead he had quoted a nutritionist, when the issue has nothing whatever to do with nutrition as A1 and A2 are nutritionally identical; and a professor of brand marketing, who of course WOULD say A2 was just a clever branding ploy and there was really no difference between A1 and A2. What the hell would he know?
The comments from readers were far more informative than the newspaper article itself which was obviously written by a journalist trained to be provocative rather than informative.
The parliament of the Indian state of Haryana, one of the country's most progressive agricultural and industrial states with a population of 25 million, has passed legislation banning the slaughter of cattle and setting up a governmental programme to promote the breeding of dairy cows that produce pure A2 milk.