http://www.nzherald.co.nz/business/n...ectid=10879401
Not sure if this is good or bad news for A2
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http://www.nzherald.co.nz/business/n...ectid=10879401
Not sure if this is good or bad news for A2
Time to buy.
Best Wishes
Paper Tiger
Someone just steam rolled the sellers at 60. Buyers now stacking up there. I've been waiting for this moment for 4-5 months!!
And there's 61. I smell blue sky in the not too distant future :p (although ATM has managed to prove me wrong nearly every time!)
The herald article relates to what I was talking about previously about only a few of the people selling infant milk powder being genuinely produced in foreign countries, rather than "processed"/"enhanced" in China. The creation of theNew Zealand Infant Formula Exporters Association is a response to that fact, but it is likely the market will continue to be flooded with "enhanced" product (even though the milk powder comes from NZ) due to the lax enforcement of rules in China and the corruption/nepotism that exists here. Chinese consumers often think of "NZ milk" as a single entity, hence the big scare of buying ANY NZ milk last year when the last scandal rocked.
A better approach may be for fonterra and synalit would be to get together and decide to stop all exports of their milk powders to companies which are producing infant formulae. That way they can produce/can the powder in NZ according to NZ regulations and sell directly in China. This may piss a few Chinese businesses off and be seen as anti competitive, but would most likely benefit them in the long term through being able to keep their reputation.
I aren't sure they will be able to convince the average Chinese consumer that a particular brand is better because it has some marking on the packaging as belonging to this group (which is what we do in the west with heart health ticks etc). And besides, as soon as such a marking comes out, it will be forged and put on the cans of the other makers to also include something very similar. Actually, my friend here told me, a lot of places pay to take the genuine infant milk cans back from consumers - the reason is clear as to why - the dodgy companies in China refill them with their own inferior product and resell them to consumers as the real deal at a higher price point. Sad but true, anything goes with Chinese business men. My Chinese wife also tells me there is a fairly new saying in China "Chinese people are the best in the world at killing Chinese people".
Well we are now sitting on the next major resistance and the all time closing high. It may not smash it today as it has already risen 5 cents, but I can't see the resistance putting up much of a fight!