http://www.news.com.au/entertainment...-1226570464875
Danii doing her best to promote the brand
Printable View
http://www.news.com.au/entertainment...-1226570464875
Danii doing her best to promote the brand
Still trading around that 50 cent mark. Profit update should hopefully be within the next week, so with any luck that will get ATM out of this rut!
Which major shareholders are you referring to?
Milford have been topping up, not reducing...
https://www.nzx.com/companies/ATM/announcements/231013 (Sold 20m shares)
https://www.nzx.com/files/attachments/168306.pdf (Sold 80m shares)
https://www.nzx.com/files/attachments/168305.pdf (Sold 40m shares)
Milford topping up? Seen Ecoya share price recently?
I see where you are coming from, however you must remember that ATM has been a multi-bagger for them, so it makes sense to sell a good portion of their shares to profit take and lower their risk exposure. Or it could be like you are saying, that they think it has peaked and want to get out. I have no idea which is true. From my research I am confident in the growth of this stock however. I could be right or could be wrong, all will be revealed very soon!
$1.3ish mil trade today - pocket change ;)
When do ATM update there earnings?
ATM 21/02/2013 08:30 HALFYR REL: 0830 HRS A2 Corporation Limited HALFYR: ATM: Announcement of Half Year Result The A2 Corporation Limited result for the six months ended 31 December 2012 is expected to be released to NZSX on Wednesday 27 February 2013 End CA:00233211 For:ATM Type:HALFYR Time:2013-02-21 08:30:38
The end of this rut is in sight! Well, I hope so anyway...
Am finding it tough to access info on this company.
How exactly does the company make money from the british sales? and how is a2 uk different from a2 nz
The depth is showing some promise.
there were about 2 million shares still looking for a home the last few weeks ....it has been a slow distributional process but progress is being slowly made .... today this number has shrunk to 1.1 million (asks 51c-54c). What will Wednesdays result do to this number.....?
Strong support at 50C but being only two buyers this could be an illusion.
There have certainly been some big trades in the last week or so. Each time the sellers at 51 are almost all gone, a whole bunch of new sellers appear there. I'm confident that Wednesday will break this stagnation and send the SP on an upward or downward trend. Aus sales look as strong as ever, the UK seems to be ticking along nicely and I think the NZ market has picked up so I expect a definite upward trend after this announcement. I am a holder though, so of course I would think that ;)
Thanks for the info , whenever i try to find out more about the company i hear lots about how A2 milk is relly healthy etc , and how Danny Minogue loves it . What i struggle to find info on is how the company will make money from it.
Am i right in thinking they will make their money from buying the milk from the A2 producing farmers and then selling the milk on to the supermarkets at a markup? Do they own any herds themselves?
Or will they make money by allowing others to do all the dirty work and just skim a little off the top for inventing the milk?
Looking at the market depth yesterday , it was heavily populated by sellers, might mean nothing but with result out tomorrow would of expected to see a little upward movement in the price by now
I made a flying visit to the UK last week ,and was very suprised to see the milk being advertised on TV at primetime , very professional looking ad, sparked up my interest in the company
Cracked through the sellers at 51 cents and finished on 52 cents with good volume. The mountain of sellers is much smaller now. Lets hope the profit update tomorrow meets or exceeds market expectations, otherwise I suspect there will be blood shed!
For those who want the full announcement:
A2 Corporation growth continues ahead of plan
8:43am, 27 Feb 2013 | HALFYR
Highlights
o Strong growth in sales, up 57% on the corresponding prior period
o Strategic review completed and implementation now in progress
o Increased market share in Australia to 6.9% by value in grocery
o UK fresh milk launch underway from October 2012
o Distribution agreement entered into for sale of infant formula into China
o Successful capital raising and move to the NZX main board
o On track to deliver the growth outlined as part of the equity raising
Revenues grew strongly over the corresponding half as a function of continuing growth in a2(TM) brand fresh milk in the Australian market. The a2(TM) brand remains the fastest growing dairy brand in grocery in Australia. Significant progress was also made in the priority strategic initiatives in expanding the a2(TM) brand into a new market in the United Kingdom and finalizing the platform for infant formula into China.
Managing Director Geoffrey Babidge said "the standout performance of the Australian business and its strong growth prospects provide the increasing momentum and earnings to support our current new market growth initiatives. The recently completed Strategic Review and equity raising provides a comprehensive roadmap and the capital to accelerate the implementation of the Company's strategic plan".
Financial performance
The unaudited group profit for the 6 months ended 31 December 2012 was $554,000 including EBITDA of $3,459,000, 54% over the corresponding prior period, in part offset by the Company's share of UK establishment costs and the final component of strategic review costs.
The result included the following key items:
o Sales of $44,281,000, representing an increase of 57% over the corresponding prior period;
o EBITDA before share of associate earnings and non- recurring items of $3,459,000 compared to the corresponding prior period of $2,241,000;
o Share of costs associated with A2 Milk (UK) Limited joint venture of $1,480,000;
o Non recurring costs associated with a Group Strategic Review of $755,000.
The strong momentum of the Australian business is ahead of the growth outlined as part of the recent equity raising and remains on track to achieve its full year 2013 EBITDA forecast of $11.2 million before intercompany charges.
Cash on hand at 31 December 2012 was $21,500,000. The movement over the period primarily reflected operating cash flows in Australia, proceeds from capital raisings and further investment in our UK joint venture.
Strategic Review
A comprehensive strategic review of the Company (commenced in April 2012) was completed and announced to the market in October 2012. The outcome of the review is that the Company will dedicate additional resources to initiatives previously announced and prioritise opportunities identified during the review including:
o Further developing the strong suite of IP and the uniqueness of a2(TM) brand dairy products;
o Further growing the Australian and New Zealand fresh milk businesses;
o Accelerating investment in the UK fresh milk market;
o Accelerating investment in the China infant formula market;
o Entering new international markets in particular in North America and markets in Europe;
o Entering new categories with UHT milk and Yogurt a priority.
Operational Review
Australasia
a2 (TM) sales in Australia continued to show strong growth and represented an increase on the corresponding prior period of 57%. Ongoing investment in marketing and communication contributed to the growth of sales and increased brand recognition. In particular the "thank-you a2" media campaign is proving effective in creating awareness in the A2 proposition and together with PR, health care professional activities and social media engagement is driving new consumer trial. Further gains in distribution also aided sales. We estimate the market share of a2 (TM) brand fresh milk by value in the grocery channel in December 2012 to approximate 6.9%.
The Company's new milk processing facility in south west Sydney performed well with volumes ahead of plan and improved efficiencies when compared to the second half of last year. We commenced a project to improve supply chain efficiencies in consequence of volumes continuing ahead of plan. The Company continues to work closely with its contract processors and negotiated extended arrangements with two contractors during the period.
The Company continued to assess options to further develop the a2 (TM) brand fresh milk within New Zealand in conjunction with the existing licensee.
United Kingdom and Ireland
In November 2011, the Company established a sales and marketing joint venture in the UK and Ireland with the leading fresh milk dairy company, Robert Wiseman Dairies (RWD), now a wholly owned subsidiary of Unternehmensgruppe Theo Muller Group.
During the current half year the JV completed its establishment phase and launched a2(TM) brand fresh milk into the retail trade in Britain. The joint venture now comprises a dedicated sales and marketing management team near London, with procurement, processing, distribution and administration services provided by RWD. The business has recruited an enthusiastic dairy farmer supplier base with capability to build significant A2 milk volumes over time.
The product launch commenced with 3 retailer groups with distribution building across approximately 700 retail outlets from October 2012. The launch was initially supported by a public relations and print media campaign and is being followed by a television advertising campaign which commenced from end January 2013. The communication strategies have been tailored to meet the requirements of the various UK regulatory authorities. As part of the launch the business has engaged two profile celebrities with particular appeal to the target market: Dannii Minogue, herself a convert to the digestive benefits of a2(TM) brand milk and Dr Hilary Jones, a well-known and respected health care professional
As advised during the strategic review, the launch in the UK is expected to follow the approach in Australia - a slow build based on progressively raising consumer's awareness of the unique product attributes driven by PR, consumer marketing and engagement with health care professionals and through broadening distribution. Our sales are growing from a small base and the focus is on building rate of sale within existing distribution and achieving retailer support to further broaden distribution.
Infant formula into China
The Company continued to progress its strategy to introduce a2(TM) brand infant formula into China. In October 2012, the company announced the appointment of China State Farm (CSF) as the exclusive distributor of a2(TM) brand infant formula for Greater China. As part of the agreement, A2C and CSF established a joint marketing structure to support the development and implementation of marketing activities within the territory. Following the appointment of CSF and given the strategic supply agreement with Synlait Milk Limited, A2C now has a complete end-to-end New Zealand sourced supply chain for China.
To support this major growth initiative, a new business unit, A2 Infant Nutrition has been established with a dedicated management team focused on business development, supply chain and marketing functions together with an in-market manager based in Shanghai. This infrastructure will also support development of additional opportunities such as UHT milk into China and the launch of infant formula in other markets. Sales to CSF are planned to commence this financial year.
Equity raising and move to NZX main board
Following A2C's strategic review, in December 2012, the Company initiated an equity raising to increase liquidity and provide additional funding, applied to move from the NZX alternative market to the NZX main board and the Company's three largest shareholders partially sold down their shareholdings.
The company was very pleased with the outcome of this process with fresh equity of $20 million being raised at a price of $0.50 per share and approval obtained to move to the NZX main board. The number of shareholders increased to 2,151 at 31 December 2012. Receipts associated with the exercise of partly paid shares also contributed a further $693,000 to cash flow during the half year.
For further information contact:
Geoffrey Babidge
Managing Director
A2 Corporation Limited
+61 2 9697 7008
Results sound fantastic. Of particular interest to me is the entry into new market categories (UHT and yogurt) and the launch of infant powder into China. I envisage that the infant powder could become absolutely massive in China. I guess the only negative in the update is that they were pleased with the outcome of the capital raising - I'm sure we can now put that behind us though ;)
Mr Market seems happy today..... the mountain of sellers nearly all gone..This huge resistance at 51-54 has weakened considerably these last 2 weeks so there's potential for a breakout
Disc Hold
Bids Quantity No. Price 30,000https://www.directbroking.co.nz/Dire...ges/spacer.gif 2 54 205,558https://www.directbroking.co.nz/Dire...pth_before.gif 5 53 11,000https://www.directbroking.co.nz/Dire...pth_before.gif 2 52 150,242https://www.directbroking.co.nz/Dire...pth_before.gif 2 51 754,278https://www.directbroking.co.nz/Dire...pth_before.gif 3 50 44,142https://www.directbroking.co.nz/Dire...pth_before.gif 4 49 115,000https://www.directbroking.co.nz/Dire...pth_before.gif 2 48
Asks Price No. Quantity 52 2 160,000https://www.directbroking.co.nz/Dire...ges/spacer.gif 53 6 398,549https://www.directbroking.co.nz/Dire...pth_before.gif 54 3 130,000https://www.directbroking.co.nz/Dire...pth_before.gif 60 3 37,600https://www.directbroking.co.nz/Dire...pth_before.gif
Only 427,000 at 54 cents left now. We have almost broken through!
In at 53cent punt money only
It the UK prime time ad that impressed me , but i am rather gullible :-)
Whoi is the big seller? hope he not the smart one in the room
Put at 53c but not moving.
Me thinks its all the people that were allowed to hop in on the capital raising who didnt jump ship when it went low and who didnt sell at 55cents selling now after they realised they missed the quick 10%, and just taking what they can after a good announcement...
Agree, such a successful capital raising :sleep:
The Bollinger bands have been getting extremely narrow and today it broke through the upper band. If the 54 cent resistance is broken then I'd be confident in saying that this is the beginning of a strong uptrend. I guess we will find out in the next few days (or weeks).
Im going to go for 'weeks' - Pretty stubborn 54cent wall - need all the none believers to jump ship already!!
Surely it would be in Milford's interest to snap up half a million and break that resistance :p. Ah well, we may just have to be a bit more patient.
Its been a waiting game since the capital raising and more available shares to aid trading liquidity ...Finally Buy signals have appeared ....so why sell now??....
http://i458.photobucket.com/albums/q...TM27022013.png
So, did ya jump back in today moosie?
Nothing till 60 :eek2:
Fantastic, huh? The train is leaving the station, there may just be enough time to jump aboard if you haven't already!
Focussing on the sales growth of a2, I believe that the infant formula will become massive in Asia (to be launched in May/June). From the research I've done, many Chinese mothers will ONLY buy infant powder from New Zealand as it is seen as pure and trusted (although this has been somewhat tainted over recent scandals). The Chinese also love to purchase anything that claims to be a health product or natural remedy (i.e. a2 Milk). Chinese mothers will want only the best for their babies. This means a2 infant formula will have a massive selling point/point of difference over the current "best" infant formula (formula from NZ) and will most definitely appeal to their target market.
The chinese infant formula market is worth around US$6 billion per year, with an impressive 12% growth p.a. If a2 can capture even 1% of this market, that's US$60 million in sales per year. Capture 10% and that's US$600 million in sales per year.
Some interestingly big parcels changing hands in the last hour !
10.5M now... Will be interesting to see who it is. Would be a good sign if Milford is accumulating even more.
How much to punt in this one?
I've been patiently waiting for this. Should give the SP another boost.
On another note, I'm pretty impressed with the a2 marketing campaign in the UK. After bit of an issue, they have launched their "Try a2 milk for free" campaign. Anyone in the UK can sign up on Facebook for a voucher to get free a2 Milk at their local supermarket. They are certainly spending some coin on the campaign, which is very nice to see (money well spent in my eyes). IIRC, their Facebook likes have gone up a few thousand in the last week or so.
https://www.facebook.com/a2MilkUK?fref=ts
Thanks sparky. Great advise.
Punt nothing. Do your homework and invest wisely.[/QUOTE]
People stacked up at 55 and 56 are starting to up their price. 273k buy shares at 57 now. Should easily get to 58 today.
Waikato is one producer also the BOP its possible to run a 50% mixture on any farm thou farmers know there cattle that produce that protein etc http://www.stuff.co.nz/business/farm...hore-expansion
I've been trying to estimate what a "fair" SP should be, but am having some difficulty. Just wondering if anyone could add their two cents (Sparky?).
Looking at a couple of fundamentals:
Price/Sales ratio = 3.7 (based on a projected estimate of $100m full year sales)
PE ratio = 187
In my view, the P/S ratio is quite small for such a high growth company like ATM. Compare this to DIL and XRO, who have P/S of ~10 and ~20 (although this may be somewhat chalk and cheese). Could the low P/S ratio be attributed to the fact that the margins are likely to be much smaller? On the other hand, the PE ratio is extremely high. However, this is justified by their expenditure into growing the business very quickly. The fact that it is positive is always a good sign.
Would drought have any effect on their earnings?
Sparky did you make the fund managers pump up? Actually, I wanted to sell down but waiting now.
Quite a big day for ATM, both price wise and volume wise (14.5m shares traded). I imagine the massive off market trades after close would have been the index funds readjusting their portfolios. Hopefully entry onto the NZX50 can push it back to its all time highs!
Superannyuation cease to be SSH:
For last disclosure,--(a) total number held in class: 32,326,698 (b) total in class: 646,416,979 (c) total percentage held in class: 5.001% (Note relevant interests held by Managers as follows: AMP Capital Investors (1.905%); Milford Asset Management (2.379%); Devon Funds Management (0.206%); New Zealand Superannuation Fund (0.511%)) For current holding after ceasing to have substantial holding: (a) total number held in class: 30,992,266 (b) total in class: 646,416,979 (c) total percentage held in class: 4.794% (Note relevant interests held by Managers as follows: AMP Capital Investors (1.905%); Milford Asset Management (2.379%); New Zealand Superannuation Fund (0.511%))
I got out at 59 over the past 1-2 days - Just needed the money more than anything, bills have to be paid. Nothing against the stock but the only next boost I can see in the forseable future is the release of any information on the infant formula. I have always been quite bitter about this stock due to the capital raising but happy(ish) now.
Just curious, why do you think ATM would get hammered if there was to be a correction? I would think that the 50 cent support would be pretty darn solid considering the amount traded at and above that.
It has certainly been a fickle and frustrating stock in the last few months. It just cant quite truly break free and get on a run. I suspect that many holders have become frustrated and impatient (probably rightfully so), so money has been pouring out and going into the likes of PEB and the recent SKT and SUM placements. I live in hope that the sellers will dry up a wee bit and it will hit 70 cents soon, but we shall see.
http://www.southernweekly.com.au/sto...-show/?cs=1252
Here is a little article about an A2 farmer.
I understand the selldown by the major shareholders was to create liquidity in order for the company to qualify for a main board listing.
Correct, and who potentially benefits most from this liquidity going forward?
nothing sinister inferred, just pointing out a side effect of their action
http://www.stuff.co.nz/business/worl...1-a-litre-milk
Article may be of some interest. Loads of sellers currently in the 58-60 cent range, but 57 seems to be bit of a support. Buyers appear to be slowly chipping through the sellers though - this reminds me of a month or two ago! MACD lines have crossed and RSI is heading down. Still confident that this is capable of producing some very nice returns, however whether this will occur soon or in months I have no idea. Main catalyst for a rise in price would be an announcement on the Chinese baby formula launch I'd imagine. Have stops in place at 55 cents, as if she starts heading back down I feel my money will be of better use elsewhere.
I think its still really only a matter of time until everyone gets it, for now imagine 4% of china http://www.heraldsun.com.au/news/nat...-1226589396777
Hi all you might find this interesting for this thread.
http://www.bbc.co.uk/news/business-22066243#
Depth currently isn't looking too good. ~2mil sellers up to 60, yet only ~500k buyers from 51-56. Getting to the point where I may be sending my money elsewhere. Any of you chart experts got any views?
Squeezed BB with down trend often indicates either a reversal or a change of rate of the same trend......because TA indicators reflects past and present trading behaviour one should not be surprised to see weak technicals in this situation it is often the case ... divergences are always nice to see for it increases the odds but they are not a necessity in a reversal.
Which Way is the trend going to go and when???
Looking at the chart there seems to be a possible inflection point at 56c where the MA50 EMA200 trendline and the bottom BB band line are all lining up reducing the wiggle room for the ATM share price and will force the price to break out...Inflection points with a lot of players involved are powerful areas...Keep in mind that the 59 resistance line and the primary trendline are imitating an ascending triangle type of chart pattern (invalid). A valid Ascending triangle chart pattern pattern haa a 70% breakout upwards (Bulkowski) Mind you this is not a true ascending triangle pattern (invalid) so I would lower the breakout upwards odds from 70% also that 59c resistance line looks very strong as confirmed by the depth data........................but probably still odds on as it is a bullish pattern type.
Time will tell whether to buy or sell on which breakout direction
Disc" sold last week at 56c (6% profit)...reason: lowering the overall risk of my NZX portfolio by increasing my cash/equity ratio....
http://i458.photobucket.com/albums/q...m110042013.png
I use the free version of Incredible charts... I create my chart and save it to my computer as a picture file ...I then use the open source Paint.net software and add the extra lines, text, highlights, expand the canvas and inserts etc and save the edited picture file again ......I upload the picture file to photobucket to obtain an image code.... I then copy and paste the image code to my Post on ST.....It does take some time to do this :)
Sometimes I use Stockcharts (posting on the S&P500 thread) the free version shows the intraday stuff on Wall St exchanges.
The depth insert onto the chart above was done using Paint.net software....I just open a new paint.net program page then push the PrtScn button on my keyboard click the edit and paste the screen scan to the new page...I then cut the part I want from the screen and paste it onto the other program page containing the chart and resize the insert to fit....very quick and easy once you know how.
A man after my own heart Hoop..
Keep it simple.. Keep it cheap.. We all would like to be Gordon Gecko.. But .. Sell... Buy ... Sell..
But come on !!.. We have to be realistic.. How often can we really do that.. ???
Take time to research.. Take time over decisions.. Make sure that all the boxes are ticked...
So you have to forgo a few parties .. A new Mercedes.. A wild weekend at ST Moritz.. A Bank Account in The Caymans...
AyyYaaa YAAAA... .. Must get back to the Interrrrrrrrrrrrrrrrrrrrrrrrrrrr... $$$$$$$$$$$$$$$$$$$$$$$
I got out yesterday too for a small profit.
Why hello there Mr 1 million share order at 55. Have been making progress through them sellers this past week, now only 1 million between 56-60.
Fantastic huh? Been some big volumes the last few days. I suspect that 59 cents will be getting tested soon :t_up:. You still in or bought back in moosie?
The guy buying 1 million shares has pushed his bid up to 57 :t_up:
New A2 infant formula heading to China
Voxy
New Zealand listed dairy company A2 Corporation (NZX:ATM) is ready to tap into the lucrative international demand for New Zealand made infant formula with ...
Maybe this will help the price along ( just when I sold half of my holding)
Hopefully this can boost it through the 59 resistance and send it towards its former highs. MACD is getting close to crossing. Milford becoming an SSH again is a good sign too.
A good write up in todays NZ Herald too. Expect a bit of movement today as awareness spreads.
http://www.nzherald.co.nz/business/n...ectid=10878909
New A2 infant formula ready for China
NZX-listed alternative milk company A2 Corporation says the first consignment of its new infant formula brand will be shipped to the lucrative Chinese market next month, followed by distribution in New Zealand and Australian supermarkets soon after.
The company has appointed the China State Farms Holding Company Shanghai, a subsidiary of state-owned China National Agriculture Development Group Corp, as the exclusive Chinese distributor of its Platinum formula brand.
The formula will initially be sold in Beijing, Shanghai, Guangzhou, Tianjin and Chongqing before sales are progressively expanded to other major cities in mainland China, as well as Hong Kong and Macau, A2 says.
The company expects to be generating annual sales of $60 million in China by 2016.
In October, A2 announced a strategic agreement with Canterbury dairy processor Synlait Milk to manufacture A2-branded milk powders and infant formula at its facility in Dunsandel.
A2 sources its milk from cows that are selected to produce A2 beta-casein protein.
Managing director Geoffrey Babidge said A2 milk was more comparable to milk produced naturally by mothers than other beta-casein types.
The fallout from China's 2008 melamine scandal, in which several babies died after the toxic chemical was added to baby formula and milk powder, has driven a massive rise in demand for imported formula brands.
A2 shares closed at 57c on Friday.
Have broken through the 59 resistance with ease. Big chunk of sellers at 60 (700k) so I wouldn't say we have broken free just yet. Not many sellers after that though!
I would like to know if their product is arriving in China just as they send it from New Zealand or if it is being sent to Guangzhou /Shanghai first for "processing". This is because I know how Chinese do business here with other imported milk powder which is to take the imported powder in bulk, cut their own ingredients into it then repackage it for mainland customers. This makes them more money but of course introduces Chinese capitalism into the production chain, causing the addition of unknown elements into their product. Anyone know the answer to this or can call the company for clarification? Chinese people will pay top dollar for the real deal milk powder, but anything that has been processed in China they will be highly sceptical of.
It is all sourced and processed in NZ. I believe it is packaged into its individual final tin in NZ as well (based on the image from this article: http://www.nzherald.co.nz/business/n...ectid=10878909).
Yep by the looks of that Herald article it's being canned for final sale in Dunsandel. Hopefully they haven't simply moved their dodgy practices into their NZ factory... Anyone know the regulatory oversight that goes on to protect our export name? Have been a little worried about this since I saw the big chinese owned factories going up in NZ, if they start exporting low quality / poisonous goods directly from NZ all of NZ's exports will be called into question and severely impacted.
Announcement looking all good , finally we have some real news and not just endless waffle about market depth.
Mainland Chinese do not trust any milk powder that is locally made or processed; that's why it becomes headline news when Hong Kong introduces a maximum penalty of HK$500,000 and 2 years imprisonment for any visitors taking more than 2 cans of milk powder across the border. In Europe there is no such regulation yet, but all retailers have set straight limits to sell to the Mainland Chinese. I believe we have or used to have something similar in NZ too.
While it is a bit sad to see a country where the people do not trust their own products, and obviously it could be annoying to see them clear out all stocks in supermarkets and pharmacy at a worldwide scale; it is a great business opportunity to export milk powder directly to China without any involvement of the local factory. Hong Kong Government is being naive to control the demand instead of encouraging more supply. In fact, the current supply of milk powder in Hong Kong is at least 20x more than its local needs, so the solution should be speeding up the supply instead of destroying the industry.
Following that line of thought, ATM would only do well if they export directly to China and I think that is the case.
As an indication from my friend, who has been in the biz over here (I am in China), last year there were 58 different brands of milk powders imported to China. 56 of those were "processed" in China, the milk came in bulk (mainly from NZ) and was "enhanced"/"reprocessed for local needs" in China before being on-sold to consumers as "imported milk". Of course, technically it was "imported milk", but in reality it had whatever the Chinese factory wanted put into it. Hence the melamine scandal of a few years ago and the completely justified scares of Chinese consumers just trying to feed their babies because a lot of them don't naturally produce enough breast milk.
My question is, under what guidelines do Synalit operate in New Zealand? Their website claims it is to NZFSA guildlines which, if true should see the sales of infant milk for A2 go absolutely ballistic and I would suggest their 60 million of sales in 5 years is terribly pessimistic - they could be one of the only suppliers of high quality low allergy milk (remember a lot more Asians compared to Europeans are lactose intolerant) into China. As such they should sell out of the stuff as fast as they can make it, maybe the 60 million figure is only an indication of how much they can supply?
As far as I'm aware any food product produced in NZ must comply to all NZ regulations, even if it is to be exported. It must obviously then also comply with any regulations in the recipient country.
Also, note that a2 Milk still contains lactose, so is no use to anyone who is lactose intolerant :)
Market depth ...waffle???....Don't you want to know how many buyers and seller there are in the market and at what price they are willing to buy or sell for ATM.
I would never ever buy or sell a share without checking the market depth first....there are some non-active investors out there that can't obtain depth data...
Sorry, didn't mean to indicate the milk is lactose free, I just meant to indicate that many asians aren't used to a milk rich diet and therefore aren't as tolerant to milk proteins as us westerners. A2 milk has a different protein makeup which theoretically makes it less allergenic to those that aren't used to milk... "theoretically" as its still being argued for and against, as far as I know.
Depends on your definition of import, there could be more than 58 brands in total if you count those ones that come through the border by the ant-moving mechanism. Yes, that is a term used to describe how they use hundreds or even thousands of people to each move a few cans of milk powder across the border of Hong Kong every single day. Those human-imported milk powder is the one that is trusted by the middle class Mainland Chinese (the upper class would have different ways to obtain them). They are all sealed and not officially imported to China, even the exact same brand could be found officially from the import list, maybe one of those 56 brands you talk about. But they are not considered imported milk from the consumer's point of view. The local people are smart enough to differentiate.
If you are in China, you should be able to see with your own eye that those enhanced milk powder products are not doing very well at all. It is because the real business opportunity lies only with the true import route and everybody knows that, including A2.