Such faith !!..
Disc. Holding .
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Market cap $370m still seems rather rich
Maybe approaching fair value?
54c next test which was previous lows
Looks like a2 has gone a bit sour lately at 20 month lows. No worries, more good buying opportunities at these lower prices after christmas. Bought 3 bottles of a2 and knocked a big bottle of a1 onto the floor, it broke open and went everywhere up my leg and up the other shoppers legs. I said, it's ok don't cry over spilt milk, it's only a1, which was a good opening line to tell more people about a2 and hand out my a2 flyer. What a laugh :D Have a merry christmas to all readers. Drive carefully and let that tail gater pass, they are in a hurry.
Haha you are a always good for a laugh See Weed.
Could be a possible double bottom forming with a nice overarching up and down pattern. 55 was big resistance/support many months ago, with 50 being even bigger.
Hope there is some good news to come for all shareholders. Merry Christmas :D
“Further gains in the index were capped by a 3.5 percent slide in A2 Milk to NZ$0.56, as the specialised milk processor remained under selling pressure due to sliding global dairy prices”
http://uk.reuters.com/article/2014/1...0UE11F20141230
Hmmm well, that is an interesting comment, and I guess is a debatable one too, I suspect it may be representative of un-researched short term sentiment too.
Should investors not anticipate that a slide in global dairy prices is net beneficial to ATM given that the company largely pays at the farm gate for milk supply as an input cost in Australia, New Zealand and in the UK.
It may take time but lower global prices over time should translate to lower farm gate contract prices for ATM as a lower input cost to their business.
A2 retail milk prices did not rise during the dairy boom and have not fallen during the dairy bust.
And, this is also true throughout the ‘milk wars’ in Australia. In fact the retail price of a two litre A2 bottle of milk has been priced unwaveringly at A$4.99 since 2009.
Thus, lower input costs + steady retail pricing = prosperity
So, perhaps we have a share market anomaly as far as I’m concerned, and an ever prospective opportunity for long investors, just hope it holds for a short while as I’ve no cash at present.
New year, new opportunities.
interesting comments stemming from the mis placed fact that some market commentators think that ATM is a milk processor? I'm thinking that even if it was, is that actually relevant anyway?The cost of proscessing is still the cost of processing irrespective of what the input prices (prices at the farm gate) are. The only potential downside to a processor is volume and in this enviroment demand can only go up as total cost falls ( all things being equal). The only losers are the farmers or milk suppliers as far as I can see.
as is already pointed out ATM's profit is unaffected if ATM thinks that prices need to fall to remain at a similar price differential to standard milk or increase if they maintain the same price
I really think short term discussion about the relationship between the current market/processing price of milk and the share price and fundamental value of ATM is a bit beside the point, given that a2MC occupies a unique position in the spectrum of dairy product suppliers and is really only on the start of a longterm trajectory that will not have much to do with those factors. Much more significant over the next few months will be the Aussie market's response to the upcoming dual listing, plus ATM's success or otherwise in China, Britain and USA, and the publicity impact of further scientific test results due in the near future.
Yes that as well NT, accept I agree with previous posters that the dual listing in itself will not do anything much to help the SP