Trading halt to be lifted soon, not much in announcement other than the news about Dean Foods position. Nothing on capital raising....let's move on...
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Trading halt to be lifted soon, not much in announcement other than the news about Dean Foods position. Nothing on capital raising....let's move on...
I'm a little confused by your comment. I would have thought last nights article warranted either a statement before market open or a trading halt if they couldn't get their act together in time.
It seems ridiculous to me that they allowed a 32min window to sell before they acted.
My memory is a little hazy on ATM but hasn't this happened before in a similar form?
My theory is that the NZ market misunderstood this comment from Freedom CEO Rory Mcleod in yesterday's SMH article, (as posted this morning by 'lolgza'):- "The company and Dean Foods have ceased detailed discussions in relation to a2," Freedom said". The "company" is Freedom Foods - not a2MC. The ceasing of detailed[!] discussions may have something to do with Dean Foods being investigated for insider trading, whatever, I think a2MC moved to stop the freefall (8.6%) with a short TH and then clarify the situation with the 'Update on EOI' released at 12:03 NZ time, stating: "Although there has been no formal withdrawal of the Expression of Interest, the Board continues to consider that no takeover offer is imminent". Note that a2MC have stated that 'no takeover is imminent' right from the first announcement of an EOI.
It was a bit confusing over here in Oz, because the ASX suspended trading without a TH announcement. The first trade (0.605c) was at 10:21am after the 'EOI update' at 10:10am.
The lesson here is to read articles in the press carefully. Those who sold at 64c this morning may be regretting their decision. I trust only what the company announces.
I have to agree with you blundoon. I could not have sourced any more negativity than was inherent in the SMH article. They even delved into FF's last annual statement and pulled out the "a2 holding potentially on the block for sale" or words to that effect line, and the "perich unimpressed with latest results" line. Throw that in with FF/Deans deal "abandoned" and you would go rushing to drop your shares immediately as if the company had no future.Quote:
The lesson here is to read articles in the press carefully. Those who sold at 64c this morning may be regretting their decision. I trust only what the company announces.
The statement about reviewing a2 shares for sale is nothing new. As a prudent person you could logically say that about any holding anyone had. Anything is sellable at the right price.
Happy to be guided by the company's forecasts rather than the media's assessment.
I have been commenting without introducing myself. Originally from Wellington NZ, I have lived in Oz for quite a while, but travel back to visit family regularly. I have been a holder of ATM since May 2012, (and now also A2M), buying several parcels over the years. Like many of you, I've become a huge believer in the science of a2/a1 beta-casein in cow's milk, and therefore a consumer as well - haven't tried the ice-cream yet! I feel sorry for you in NZ with the limited availability of the products at the moment.
I would like to thank all the contributors to this forum since I joined a year ago - your research and comments have been very informative and helpful. I've been investing for over 10 years, but always learning. In particular I want to mention NT001 for his research, insights and knowledge of the dairy sector. NT's reply to 'xafalcon' on 22 Jan 15 (currently #2602/2603 on page 174 - this changes as comments are deleted), was absolutely brilliant, and dairy tech expert 'xafalcon' was never heard from again!
Comparing this forum with HotCopper, I miss not being able to give a thumbs up or down to a comment, and it is handy on HC to see if a poster is a holder of a stock and their investing sentiment. Of course some down-rampers and negative nellies are quite obvious by their comments, and it all adds to the mix.
As you can see, I don't mind a chat, but I will try and keep my posts to useful stuff. I'm now a subscriber to 'The Australian' online, (excellent Business section), so can copy-and-paste any relevant pay-walled articles to this forum. Good luck to all!
Yes Harrie, the headline plus other comments were misleading in my opinion, however, I had to chuckle at this comment: "Freedom was believed to be underwhelmed by a2's full-year financial results, despite it reporting a 40 per cent surge in revenue and being broadly in line with analysts' estimates." FNP's FY15 revenue rose only 4.1% and their underlying net profit fell 60.3%!
I should disclose that I am also a holder of FNP - originally because of their major stake in a2MC, and was very happy when they signed the A$500M deal with New Hope Dairy. They have always stated in their presentations etc; that their stake in a2 was 'strategic'.
Thanks for your comments over the last year. Cheers.
Ah well, with all that media speculation, where did the SP end up?
The fact that Freedom-Perich are no longer talking to Dean Foods about jointly taking over a2MC is a positive, not a negative. It puts Dean in a better position to cooperate with a2MC in rapidly expanding its new US operation, while Freedom and Perich focus on China. Dean is the right kind of partner for a2MC, with a big dairy marketing infrastructure in the US and a preference for catering to top-end consumers interested in "healthy" dairy. Dean Foods has a policy of very tight quality controls over its farmer suppliers, backed up by sample testing of their milk, and I see it as becoming involved somehow.
The media are carelessly wrong, IMO, in suggesting Dean Foods has been "derailed" from a deal with a2MC by the investigation into alleged insider trading activities by its former chairman, Tom Davis. It's Davis who is under investigation, not Dean Foods - and he's gone. And Dean Foods has already said publicly that the investigation does not affect any acquisition or other corporate plans it may have.
I'm betting on (and looking forward to) a capital raise announcement soon to fund the US operation. I believe, as Geoff Babidge seems to, that the US is the market offering the best returns while a2MC's full package of patents remains in force.
I also expect a very interesting announcement soon coming out of a clinical trial of Chinese consumers. It will (I am sure) back up the Curtin University research showing consumer experience from drinking A2 milk is markedly superior to drinking standard milk.
Bring it on.