Appreciated the way she answered the questions :t_up: May she lead this company to the next level whatever that maybe.
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I would argue the rest of the 5 and half min was more or less rubbish also. How about questioning their increased spending in asia and US and how that fits inline with their long term growth strategy. Maybe something on regulatory risks and offline channel executions..
100,000 crossed at $10.34. Hopefully that's the new low established and its only upwards from here
Still it has some support but at some point there could be pullback for it as well because it has appreciated lot over the last five years and trading at a PE ratio of over 50.
Like the tide is always going one way or t'other.:D
I thought I mentioned to everyone that investing more into Synlait was a great option!! Well done ATM
The a2 Milk Company ("a2MC") is pleased to announce it will increase its shareholding in Synlait Milk Limited. a2MC will acquire, through a subsidiary, an additional ~8.2% of the fully paid ordinary shares in Synlait from Mitsui & Co. at a price of NZ$10.90 per share for total consideration of ~NZ$161.8m. This represents a modest discount to the NZX one month volume weighted average price of NZ$11.16.
At had over $240m cash at end of december. Not a bad way of spending some of it. (bet they have added to that in the meantime!)
Jeez this market is a bloody tough sandpit to be playing in at the moment. Seemingly good news and all we get is a 0.02% rise to $10.44 at the moment.
ATM very recently re-inked a multi year supply contract with Synlait. We are not privy to the margin that Synlait will be making on those new supply arrangements but ATM is. (Just a thought).
I have seen quoted that Fonterra's A2 is about 50c/litre dearer than other premium Anchor brands. Presumably somewhere around this figure is A2's royalty out of it?
Supply out of 1 farm is interesting and constrained in the short term, but must have plans to scale up with demand? Challenge Fonterra have is that they aren't paying a premium for A2 over standard supply otherwise puts into question their other supply and their previous stance. But between no supplier premium and also their own 'processing margin' then must be able to supply cheaper than A2/Synlait - but then pay a royalty. I'm sure Fonterra have some way around the supplier premium conundrum.....
Did not see any 2 litter Anchor/A2 brand at Porirua Pak N Save today and they only have 3 remaining bottles on 1 litter A2/Anchor too. The demand must be really good.
I think a div will be announced, they could easily afford a 10c div.
think your find niche products only command a limited shelf space so volume is limited on display and replenishment depends on how quick shelves are restocked.
anchor has always had the most shelve space cant see them giving that up for a2
other negatives are high price , budget brands of milk are the biggest sellers by volume in supermarkets and a reflection of the nz market. aussie retail milk market is different.
anyway just a few assumptions from my experience in the field
Attachment 9836Pak N Save Mt.Albert(one of the busiest in Central Auckland)... 8pm.7 bottles left in 2 lit and 2 in 1 lit.Either the stocking/supply is low or it just a good run today...
As valuation has stretched it could have correction (pull back) especially during bear market. Current bull market will end at some point. Cycle will follow. As I said it could happen over the next 12 months. Currently, it has support around $10. If ATM breaks that I don’t rule out trading it below $9.
In order to grow, sml have to allocate limited resources and assets... They want a bigger say in how things operate.as their needs continue to grow into the future.
Also, I believe synlait might be looking into developing their own brands... Moving the way of fonterra for their next stage of growth.
A little anecdote from yesterday. Went to New World, Lunn Ave to check out the new Anchor/A2 Milk isle. Had one row each for the Blue and Lite and while I was taking one another person took one then another. Stood there for 5 min during which at least 6 1l bottles were picked up.
fwiw - they were all women. From what I've noticed (didn't want to stare or make other shoppers feel uncomfortable) they did look at the logo almost as if "I've heard about A2 Milk. Lets give it a go". A couple of them read the label very carefully before putting it in their trolley. I don't think too many will pick it up by mistake. The higher price point was clearly labelled.
I often hear people at countdown asking staff specifically for A2.
The most popular milk in AUS with millennials is translating into NZ very well.
I have bought 5 bottles for family and friends to try.
3 people said they "felt the difference"... Be it placebo or not. Regular milk bloats me the house down and A2 simply doesn't.
Often the people who don't believe the A2 proposition do not have issues with regular milk
So far so good for me. I myself haven't used milk in years. Not that it gave me any bad reactions I couldn't live with but I always noticed the (sorry for honesty) extra bowel movement or flatulence. Now 2 weeks after using A2 Milk daily in my protein shake I didn't notice any difference at all. Not sure if I will continue buying A2 milk as water is doing the trick in my shakes also but, scientifically proven or not, I do feel better and that's what counts right?
No difference to my daily routine so I drank milk and nothing happened (as it should be). But I should have made the disclaimer that my overall health and lifestyle is better now than it used to be. But if I were a milk drinking customer from this experience alone I would never to back to normal milk.
Broadly I might agree - in a western context. But that's not meant to be objectionable to those with lactose intolerance.
What gets me is studies that suggest being lactose tolerant is a genetic mutations from the last 10,000 years or so. Something that westerners who have been exposed to sheep, goats and cows and genetically evolved. Given asia (and Asians) havent been exposed to so much lactose (other than babies at birth) they have evolved with this lactose tolerance. Hence they err on being lactose intolerant.
So if the vast majority of Asians are said to be genetically lactose intolerant and A2 milk enables them to consume milk then this would be a huge market. A market where you wouldn't want to be wasting your resource by selling it to NZ'ers.
We should be keeping an eye out on the ongoing research in this area.
In the mena time if people "feel" a benefit from consuming A2 then good on them for keeping the share price up
If that stopped you investing in ATM, then the joke may be on you.
Remember, ATM was introduced into the Australian market during 'supermarket milk price wars' and despite not discounting, and despite charging a premium, ATM still achieved an amazing market share (estimated between 10 - 15% for raw milk and 30% for IF)
ATM doesn't need to resort to science (or discounted prices) to prove its market difference - the market is deciding the benefits of A2 for itself.
Nah I've been a shareholder for many years. One of my friends worked for A2 Milk early 2000's. I filled up my boots early 2015 but sold along the way to fund my first house but I still have enough.
It was meant to be a lighthearted joke. I had a bar/restaurant for years and the amount of made-up diseases I had to listen to were very funny in the most part.
I like your line "the market is deciding the benefits of A2 for itself" - I'm so confident that in a market like Australia a study could comprehensively show that A2 Milk has no benefits at all and yet customers would continued to buy. Branding is the key and in that aspect A2 Milk has kicked all the goals.
You got think of the bigger picture, and apply some reverse thinking. I see that A2 took out a blocking stake in Synlait because they are preventing the possibility of a taking over on Synlait, which could lead to a delisting from the NZX, and also potentially adversely impact the Synlait supply to A2. This is a medium term defensive play, and I would said a very good move by the management team, and to Ms Hrdlicka
The benefits are right there on the label. This is not a low fat watered down product with boosted calcium and increased sugar and salt levels. Supermarkets here are full of low grade variants that sell for $1 per L. It comes down to customer choice.
A2 or something else.
What bias?
A2 is ingested. It’s your taste buds that decide what you like.
Have you tried A2?
You can stretch your budget by making yoghurt and cream cheese and there is even enough whey left to soak your oats overnight. Your taste buds will light up and you will be incredibly satiated.
All milk is the same right?..???
When ever did you consume anything which does not taste of hydrocarbon? I guess sure, you can drink pure water (Dihydro-oxide), eat pure salt (sodium-chloride - though not recommendable in larger quantities), but anything else you consume consist out of hydrocarbons: starch, oil, fat, fiber, fruit, vegetables, meat, ...
As defined by IUPAC nomenclature of organic chemistry, the classifications for hydrocarbons are:
- Saturated hydrocarbons are the simplest of the hydrocarbon species. They are composed entirely of single bonds and are saturated with hydrogen. The formula for acyclic saturated hydrocarbons (i.e., alkanes) is CnH2n+2.[1]:623 The most general form of saturated hydrocarbons is CnH2n+2(1-r), where r is the number of rings. Those with exactly one ring are the cycloalkanes. Saturated hydrocarbons are the basis of petroleum fuels and are found as either linear or branched species. Substitution reaction is their characteristics property (like chlorination reaction to form chloroform). Hydrocarbons with the same molecular formula but different structural formulae are called structural isomers.[1]:625 As given in the example of 3-methylhexane and its higher homologues, branched hydrocarbons can be chiral.[1]:627 Chiral saturated hydrocarbons constitute the side chains of biomolecules such as chlorophyll and tocopherol.[5]
- Unsaturated hydrocarbons have one or more double or triple bonds between carbon atoms. Those with double bond are called alkenes. Those with one double bond have the formula CnH2n (assuming non-cyclic structures).[1]:628 Those containing triple bonds are called alkyne. Those with one triple bond have the formula CnH2n−2.[1]:631
- Aromatic hydrocarbons, also known as arenes, are hydrocarbons that have at least one aromatic ring.
Hydrocarbons can be gases (e.g. methane and propane), liquids (e.g. hexane and benzene), waxes or low melting solids (e.g. paraffin wax and naphthalene) or polymers (e.g. polyethylene, polypropylene and polystyrene).
add a little water will disrupt the hydrocarbons
I saw this in the shelves of Moore Wilsons today, but have not seen it before. Is it actual A2, or someone's effort of a "done it myself" without realising there is a trademark in play?
https://drive.google.com/file/d/15fo...w?usp=drivesdk
Cows produce either A1 or A2 milk.Most milk you buy is a mix of A1 and A2 milk..
Most Jersey cows produce A2 milk.
So the label is most probably correct.
Now, I am more confused than I was when I saw the bottle. It makes me worry that those without the desire to investigate would be even more confused, leading to A2 not reaching potential in some circumstances (people thinking they are buying real a2 milk from the a2 Milk Company when they aren't).
Family run business out of Matamata
https://www.jerseygirlorganics.co.nz
Or people could be happy that they are getting 'A2' milk and don't care if it comes from ATM - it's the A2 bit they want.
After all, buying Fonterra A2 milk isn't really buying ATM milk is it.
But then ATM is a marketing company - they don't actually make anything do they?
Actually - I doubt it is possible to trademark the term "A2". Too short and too generic. And anyway - that's not what ATM did.
Here is ATM's trademark:
https://trademarks.justia.com/854/53/a2-85453431.html
To violate the trademark competitors would need to use an "a2" using specific defined colours and a particular shape:
There is no law stopping cows to produce A2 milk ... and I don't see any reasons why sellers would not be allowed to state this fact (if it is true). The A2 milk company has no monopoly on selling and marketing milk which contains only the A2 and not the A1 protein.Quote:
The mark consists of the term "a2" in white contained within a blue oval all appearing above the term "milk" in blue, wherein a white droplet appears within the lower portion of the letter "a".
Competition is good ...
The hype surrounding A2 milk came about after the patenting of a genetic test by the a2 Milk Company. The patent allows the company to determine what type of protein a cow produces in its milk and therefore license dairy farmers that prove their cows express only A2 protein in their milk (and not A1 protein). A2 milk is marketed by the a2 Milk Company to contain only the A2 type of beta-casein.
the staff leaving has begun
I think it's more related to the overnight NZ dairy price auction, which down 1.7% But IMO, nothing serious. Business as usual.
Mark Lister from Craig’s is annoyed as well .....does make you wonder why a guru would come out and tweet things like this
Mark Lister (@MarkListerNZ)
8/08/18, 10:56 AM
It’s so annoying how some shares go up and some go down, and you can’t really predict with great accuracy which of them will do what.
Apparently Citigroup downgraded A2. But then they did this when it was under $2. Also apparently Australian Aumake daigou seller will sell their own branded A2 milk powder.
massive downgrade to sell
https://www.fool.com.au/2018/08/08/w...sinking-lower/