A class action has now been filed with the Supreme Court of Victoria.
To register interest.
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A class action has now been filed with the Supreme Court of Victoria.
To register interest.
No need to register now ...All qualifying people who bought either on NZX or ASX during that period will automatically be included and when the time comes for the trial or judgement then we can decide to be included or excluded to get compensation if awarded
a2 dragged my portfolio down about somewhere between 300 and $400k But only locked in about $144,000 in losses between 19/8/20 and 7/5/21 over 31 transactions. I would be very happy to get something back. PS that loss doesn't include profit, but am still down about 400k. Not a holder of a2 at the moment.:)
Has that been confirmed ATM shares purchased on NZX will also still be valid for compensation? Not just A2M on ASX
SP going to tank back down maybe testing new low sub 5.4 now. Very strong case against ATM and management. Get out now while you can. Any hope of buyout getting less appealing. Maybe previous posts of SP reaching $3.5 are not too unrealistic. Might be attractive enough around $3-$3.5 for some takeover interest?
It’s clear NZX shares are included in the action.
https://www.slatergordon.com.au/clas...-investigation
There is no good outcome for ATM from this class action - either there was breach of CC or there was gross mismanagement.
And yes, any takeover potential will now be put on hold as there’s billions of dollars of potential damages to be awarded here.
Let's not forget the sell-off from the board whilst the SP was in or near the highs of $20, then thereafter a never-ending spiral of decline in the SP, whilst the board promoted a solid plan will be put I place to continue the growth from a small/minor step back due to Covid! Lol
Who are Slater and Gordon investigating?
The a2 Milk Company Limited (a2 Milk)
Is this relevant to me?
If you purchased a2 Milk shares on the ASX or NZX between 19 August 2020 and 7 May 2021 inclusive.
What does investigating mean?
Slater and Gordon are investigating the merits of a claim against a2 Milk, but have not yet formally commenced a Class Action by issuing proceedings in court. If a class action against a2 Milk is commenced and you have registered your interest, we will get in touch with you closer to that time and provide you with more information.
How do I register my interest?
To keep updated as the investigation progresses, register your interest through the form below. It does not and will not cost you anything.
That sell down by the board and management is the most damning red flag (and potential evidence of lack of CC) imo.
Will be interesting to see how ASX reacts to the news when it opens today.
Last thing that DB as new CEO needs - a major distraction when he needs to focus 100% on the strategy reset & implementation.
I assume this applies to individuals that purchased shares during the claim period 19 August 2020 and 7 May 2021 but still foolishly holding?
Agree 100%. What I found most interesting about this whole thing is the original outlook guidance for FY21 issued at the time of the FY20 result. The overall tone of that did not reflect the reality of the situation in my opinion and this was not adjusted down to more realistic settings until after the insiders had dumped massive numbers of shares.
There's definitely a case to answer here.
Balance - do they have QCs in Australia
Got to use QCs for these sort of things
Know it is a long way down the track, but the end game for S&G is win and financial compensation. Presumably would be from liability insurance primarily, rather than from ATM itself?
So will the shorters be out in force on ASX today now that the ‘threat’ of a potential takeover is pushed out into the distance?
Outlook
FY21
• Globally, there continues to be uncertainty resulting from COVID-19, and the potential for moderation of economic activity. This could impact
consumer behaviour in our core markets, as well as participants within the supply chain, most notably in China
• Notwithstanding these uncertainties, overall for FY21, we anticipate continued strong revenue growth supported by our continued investment in
marketing and organisational capability
• FY21 EBITDA margin is expected to be in the order of 30% to 31%
--------------------------------------------------------------------------------------------------------------------------------------------
Those are the words that will get them in hot water, in my opinion.
It mayn't be that simple . Its possible suitor had encouraged Slater & Co to file this case ...9.5/10 ...nothing will come out of that ...just scare tactics for retail investors .
Also possible suitor will take expert legal advise on this issue and will know no damage will be done to business or company but only useful for beating the SP down
NZX reaction is always amateurish ...Lets see what ASX big punters think about it ...Me is betting that its very possible they bring it back like yesterday
I followed this whole fiasco very closely and made wide ranging observations over many many months as did Balance and Bull.
Is there a case to answer here ? That's like asking is the Pope a Catholic lol
they even mention growth in their statement re defending the action
just cant learn!!
Nothing will come of this other than a slap on the hands. I have never seen or heard a class action law suit be won in NZ, on a NZX traded company other than the one Jenny Shipley was in. Plus directors are insured up to the eyeballs, which means powerful lawyers on their side. Wynyard was worse than this and all directors walked off Scott free.
The three B's eh..........here is three more and an R .......Blah Blah Blah Rubbish
So far ASX is not showing any panic selling ...:D
BBB- effect has started showing ...ATM started its humty dumty fall as its got negative ratings from BBB ...:p
Recently, New Zealand infant formula dairy production enterprises in China registration list updated, details as follows: (General Administration of Customs)
Attachment 13047
https://mp.weixin.qq.com/s/QhKJ7ZMBLtg2NhqZY1oTEQ
The three musketeers have a superb track record with this one. I'm calling it. This will get settled out of court for several hundred million and after egregious lawyers fees those that lost money will get a few cents back per dollar. Market cap down $350m since this class action lawsuit was filed.
probably more than a few cents being dished out if this is the way it goes.. if the payouts on their website is any indication :)
I'd say there is fairly hefty stack of red ink during the purchase dates, based on the decline from $18 or so at the beginning
to $6/$7 at the end .. those sitting on ATM for the duration could be down by more than 50%
And ATM closed at 638 although Direct show 650.46 in the portfolio page. This being a WA settle up after close.
Will just a mere couple of hundred mil cover all the red ink out there ? ;)
Theoretically the ceiling could be all the issued shares @ $12 something - but there will be those outside the purchase period
or choose not to register / follow the claim .. ;)
How much do ATM have in the bank again ?
What's the max cover from insurers ?
Could Auditors get roped in as contributories ? ;)
Add a bundle of Advisors ?
What a potentially jumbled up expensive mess that could become ;)
Another Cap Raise needed to cover the all the carnage perhaps ? ;)
Is it too late to short ATM ? ;)
Sincerely hope you will recoup some if not all your losses through the class action, couta1.
4 downgrades in a row and with the company providing bullish commentaries with each of the downgrades, save the last one, showed something seriously amiss with the board and management. Especially with the sale of shares by them just prior to the first downgrade.
Given the billions of dollars wiped from the portfolios of shareholders over the period of the profit downgrades, there could be bugger all left in ATM if the court case is successful.
And remember this - ATM is an NZ company and the Aussies love nothing more than working a NZ company over.
I'm calling this will go nowhere or at best as you indicate a few cents worth.
Curious what amount insto's held during this period but profited by SP going downwards with those 60m shorts and daily traders playing a part. Am I correct losers pay both legal costs and wonder if there are any IRD implications here for Kiwis who expose themselves as traders.
Filing in Supreme Court in WA in the Burnt Land over the way - wasn't it ? ;)
I wouldn't be so sure of the Aussie Justice system delivering only cents in the dollar ;)
it might be different here with a Kiwi beak presiding however .. but it isn't, it appears ;)
https://www.slatergordon.com.au/ Nice lady has a good message for you.
Maybe some reflections on what learnings you can take away from this fiasco could be a good idea...
We all know how deceiving shorts are masking today's combined 14m trades been used to reduce their positions on shortman.com
But today was not about a2 S&G class action but reduced stimulus and 0.5% interest rate increase announced by NZRB
No nightmare just ALL FREE :p DREAMS and well positioned on housing and retail.
Wow:scared:. I always try and make a positive out of a loss. If you are a trader then you will not have to pay tax for a long time on all your gains. Beagle would know more about that sort situation than me. I remember someone saying something a while back about a lot of investors became traders in the 1987 crash. Good luck with your future trading and make heaps of money tax free for a while:).
https://www.slatergordon.com.au/people/kaitlin-ferris
background of the lawyer.
I wouldn't pick a legal fight with her BUT only 9 years commercial experience and no really massive settlements. Hmmm Good luck folks.
See weed - The problem with massive trading losses carried forward is they only have any real value if one has the skills to beat the market with one's trading strategy going forward. I reckon its a healthy thing for everyone at least once a year to stand back and have a really good honest stocktake about their investment strategies and methodologies and ask themselves is what I am doing really working ? Am I beating the market and if not would I be better off handing some or all of my investments over to professional fund managers or simply buying ETF's instead ?
I regularly do this. If I find I am not beating the market, (hasn't happened yet), for more than 2 years in a row I'll be handing everything over to be managed professionally and go fishing instead.
I managed to use NZ address but did have to pretty much fill something into all of the fields. Also, asks for share prices in AUD and no facility to change to NZD (I just did a rough conversion at 0.95)
Like Couta, I was down seven figures on this so something back would be good
https://www.rnz.co.nz/news/business/...sent-thousands
This is the interesting bit :
"We allege that A2 boosted sales in FY20 by pushing what's called English-label [infant] formula tins through the cross-border e-commerce channel [into China] and as a result of that, the daigou channel, which is an important sales channel for A2 ... weren't able to achieve the margin on the product when it was sold to their end-consumers in China ... because there was a flood of stock in the market."
Yes. I had this problem too. I had a flash back memory about leaving the "state" box empty, and added NZ or NZL to the state question, and it works. Then it asked for AU$ and I just ignored that and did NZ$. Lastly, after that registration phase, it then sets in progress more paperwork to sign which it says is optional, as indeed the whole thing appears to be. I hesitated and left it at the registration stage.
My thoughts go to Couta1 and Poet for your large losses. For some a $10,000 investment is huge and for others it is $1 mill. Same applies to losses.
I would like to see the management held to account for their actions to set an reminder for other managers.
At the risk of quoting myself - the above post from 22 December last year.
I think that this type of analysis will be what the lawyers will use to nail the ATM board. Basically the board and management forecasts and statements were not only egregious examples of magical/fantasy thinking but, on the face of it, they weren't even consistent with one another from one week to the next as per my example above.
Will be interesting to watch this play out
No, I am not done yet. Sold my last lot of a2 on 17/5/21 for $105,000 profit. That falls out of the time frame of 19/8/20 to 7/5/21 period. Am already up $18,000 plus on WHS in last few weeks, plus $12,000 on CEN, but will not mention ZEL which is up $10,000 plus at the moment, don't know what is going to happen there. Forgot to mention $50,000 divs since 1/3/21. No, I am not going to let a2 and shorters scare me off;).
people should always wonder why ? a stock has a large short interest and dig deeper.
Surprised to not see the SP drop steadily today. Got to have nerves of steel to hold at this stage. Bottom likely to drop out on every bit of negative news as law suit progresses. ATM management really dug a grave for it's loyal shareholders and deceived the market entirely. Highly likely going to really bite them back now. Too obvious, too public, it's just a matter of how badly they will be stung.
The big boys will know this and be lurking at the bottom factoring in a huge payout which may then lead to a buy out option but at much lower levels, even lower than the $3/$3.50 fundamental based SP previously stated in this thread.
SP currently being propped up while slowly but steadily reducing portfolios, followed by large shorts, SP surely will plummet over this next month as lawsuit gains motion. Unfortunately the company brought it upon itself. Sad, especially for a golden child NZ company. Shows the importance of transparency and solid open management.
Best of luck to the optimists. The risks are too high for me, I'm out.
Wow, 5 whole days without a single posting on this previous market darling and superstar!
So what are the brokers saying?
Has the A2 Milk share price found a bottom yet?
Unfortunately for shareholders, one leading broker doesn’t appear to believe the A2 Milk share price has found its bottom just yet.
A note out of Credit Suisse from last week reveals that its analysts have retained their underperform rating and $5.50 price target on the company’s shares.
Based on the current A2 Milk share price, this implies potential downside of 7% over the next 12 months.
What did the broker say?
According to a note from Credit Suisse, the broker highlights that infant formula prices stabilised in China in September.
It also notes that marketing activity is increasing and chat groups have been formed with daigou shoppers ahead of the major Singles Day retail sales event next month.
However, this isn’t enough for the broker to change its rating. It has previously voiced its concerns over China’s slowing birth rate and A2 Milk’s loss of market share in stage 1 infant formula. Credit Suisse fears that the latter could act as a drag on its Stage 2 and Stage 3 product sales as this cohort ages.
Is anyone positive?
One broker that remains positive on the A2 Milk share price is Citi. It recently put a buy rating and $7.20 price target on the company’s shares.
However, it has warned that there could be more bad news coming at its investor event later this month. This could include lower than expected margins.
The only potential benefit here is that that broker suspects that any weakness in A2 Milk’s shares could be greeted with a takeover offer.
Time will tell which broker makes the right call.
Huge drop in Short positions last week.
That 4% line is the benchmark, perhaps they don't see enough downside from here to make it worthwhile staying in after making huge profits over the last year, i haven't held any for over a month now(First time in 8 yrs in that situation) and I have no intention of trying to make any losses back from this hot potato.
Believe UBS PT still $11 ..........Darts ready for Spin The Wheel Game
That's an important observation and highly likely the driver for the price increases the previous couple of weeks. I reiterate my previous comments that ever bounce that occurs without a weekly trend change is no to be trusted. It is most likely just just momentum traders and shorts covering as the price gets higher and higher.
The weekly chart paints the best picture. There's heaps of detail I could add, however it boils down to a weekly downtrend that's still intact. A loose downtrending resistance line is worth watching too. With this is place there's no reason to be positive. Change that weekly trend and things could get interesting (I wouldn't bet on that happening though...). Daily price action is ultimately just noise.
Buying or shorting looking for weekly highs/lows has been very profitable.
Attachment 13088
https://businessdesk.co.nz/article/p...k-class-action
Paywalled
Hundreds sign up for class action against A2M.
Looking like damages against A2M are going to be in the billions of dollars if the class action is successful.
Not just those that have written the professional indemnity insurance contracts that should be worried. Gross negligence is often not covered and might sheet home to the directors personally as well as the management and the company. They should be quaking in their boots, they have a very serious case to answer. Insiders who sold large parcels of shares immediately after saying there was strong growth ahead might be a good target too.
Name them all as defendants and get on with it.
Always best to stay well clear of companies involved in litigation. It is a huge distraction to the running of a company and even more so if the directors and management are personally liable.
But all is not lost.
https://www.fool.com.au/2021/10/08/t...ce-to-jump-30/
Bell Porter bullish on A2M - believes stock is on recovery path & trading on undemanding metrics.
https://www2.asx.com.au/markets/company/bub
BUB today's presentation: China: All channels in High Growth.
Can't see any reasons why ATM is unable to do the same given the fact A2 is a much stronger brand.
Up 8% today. Have ATM actually had any news today to warrant such a rise. Or is it simply off the back of BUB? Seems an unusually strong daily rally for ATM with the lawsuit in gear.
"Demand for Bubs infant formula in the daigou channel surged 6.5 times on the prior year and rose 265 per cent quarter-on-quarter,"
https://www.afr.com/companies/retail...0211012-p58z7q
Weird how volatile ATM is now for a stock. The lawsuit isn't going away in a hurry, so surprised that many folk would jump on the back of a different companies fortune almost forgetting about the very recent negative news ATM faces. Markets are non sensical these days. Short term trade gamblers maybe, in and out. Sell off again sub 6.8 and back down 10% within the next week? Day traders delight. Billions of dollars payout sure will hurt and won't help company fundamentals and SP.
Shorts 5.65% = 42m Oct.6th interesting to see next few weeks
Nice to see some price action!
What a difference a day makes eh? I expect a sustained rise from short covering if AU$6.55 breaks.
Trading suspended in HK this morning too, spill over into a2
And there's the break. Hindsight would say that the big drop in shorts was smart money? Serious pressure on short positions now. Relentless price action today just looks like momentum traders punishing the short positions with stops constantly being hit.
Disc: assisting in punishing the shorts today.
I wonder why, end of AU lockdowns ? Still no students or tourists. Shipping still expensive. What sort of $ value are we talking about? 6.5 x on the prior year, 2.65 x on previous quarter, I doubt much was being traded in those prior periods.