Lots of heavy downward pressure on Synlait recently. Has slid from $3.66 to $3.26 in just over a week. Previous it seemed to track where A2 goes.. but now A2 is on the way up, SML on the way down.. any ideas?
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Lots of heavy downward pressure on Synlait recently. Has slid from $3.66 to $3.26 in just over a week. Previous it seemed to track where A2 goes.. but now A2 is on the way up, SML on the way down.. any ideas?
could be .. there has been some murmurs that Synlait might need investment to expand canning facilities next year due to the boom in A2 infant formula sales
1 1 9:03:37 am 322 228,948 $737,213 Put Through Special Crossing
Something's up, may be due for an announcement from them soon....
http://www.nbr.co.nz/subscribe/191386 Chinese demand for infant formula surges.
Formula exports to China up almost 50% compared with the same period last year with NZ market share rising to 12% from 8% in 2015.
Fake domestic product scares have put a surging demand on authentic brands from NZ, Ireland and Netherlands, specifically A2 Milk to
help feed the five million babies born in China last year.
5 million babies? The figure is closer to 20 Million babies born annually in PRC as far as I can see.... I think it was predicted that an additional 5 million babies would be born as a result of the 2 child policy. Im getting a bit nervous that a2 wont be able to keep up with demand again shortly - I hope they have another processor lined up (on top of Synlaits impending expansion), as well as a waiting list of farmers to supply said processors. I cant even think how additional a2 products / territories will affect this tight rope!
The 2 year SML chart is looking very good at the moment. The 1st year being a very well defined down trend with lots of lower lows each time finding resistance at the 100 day moving avg, the trend now is up and finding support at the 100 day MA. It looks like it will make new highs soon.