Lining up China ?
https://nz.finance.yahoo.com/news/ch...062819894.html
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Lining up China ?
https://nz.finance.yahoo.com/news/ch...062819894.html
All aboard. Last minute ticket prices are increasing so get in now before the train departs. The wheels have started turning through 65rpm, don't miss out.
Enlighten us
Uptrend has already started and is looking good.
Well I'm not sure that spending money on a PR-Web revamp will be regarded by most shareholders as ATM's priority at this time, but who knows, in this digital age I guess a more ccooordinated and integrated strategy across markets is probably not a bad thing.
http://www.thedrum.com/news/2014/11/...unt-analogfolk
But are revenues, and with it EBITDA margins in Australia increasing faster than the projected expenses are increasing? The answer to that question I think is no.
The US is a big place, even bigger than - Australia ;-). But if you believe there are no vested interests there and the competition will roll over that's fine. The last ATM rights issue was made when the share price was 70c, and subscribers were asked to put up funds at 50c. And that was when the market was better disposed towards growth shares than today. If a rights issue of similar magnitude was declared today, the new share price would have to be less than 50c. I don't think ATM wants that, which is why no new rights issue has been declared. IMO ATM are rolling the dice for another year, trying to get that share price up.Quote:
And if more cash is needed there'll be shareholders happy to take up a rights issue, I would say. Me for one. That could happen when the company launches into the US, although capital costs for that operation won't be huge and are already budgeted for.
There is a difference between 'IP weakening' and 'running out'.Quote:
And all this talk about ATM's IP being close to running out is thoroughly alarmist.
Higher profitability? ATM have given up on profits! They are reinvesting all their positive cashflow into developing new markets. Turning from a licensing company into a joint venture provider on the ground is much more capital intensive, even if it does (seemingly) work better. This change in strategy has introduced much more capital risk though. A company that doesn't make profits has to keep the capital tap turned on. That puts a life span on the company. I am calling the capital tank to be empty within two years if no capital raising is done. Doesn't matter how good the ideas behind ATM are. If they run out of capital, that's it - for current shareholders anyway.Quote:
If you think the company is on a knife edge, that's nothing to where it was a few years ago. Since then under Cliff Cook, it seems to me to have been very prudently run, nothing risky, and with a clear path towards higher profitability in well-chosen markets and greater global consumer acceptance.
A2 may be a strong brand, but it is not a monopoly product. A2 has to compete with all the soy milk rice milk and almond milk products. And if you want identical rather than similar, all some smart US entrepreneur has to do is to start up 'Buffalo Milk' and market it as that. Since Buffalo milk is all A2, that is the end of the so called monopoly. You can't have a monopoly on what is a naturally occurring product in nature. Mind you, having a strong brand and first mover advantage may be enough to make things difficult for the competition, monopoly or no monopoly.
Raising more capital.Quote:
What do you expect them to be doing at this stage of their business cycle?
SNOOPY
On both the daily and weekly charts it has passed through the down trendline and is making higher highs and lower lows.
If you look at the daily chart there is a reverse head and shoulders pattern,it has also passed through the neckline of this and is moving up,very bullish in my opinion,volume is also ticking over pretty nicely.Also for me very importantly it is above the 50 day moving average.