ASX Shares A2Milk Shares (A2M)

I've actually had a small parcel of A2M since early July 2016 and letting it run:

• Scalable business model that's asset light (no ownership of cows or facility - except for 1 processing facility in NSW). Their moat is their IP re: selecting/isolating A2-only herds; testing; delivery etc
• Diverse product range
• Infant formula growth in the marketplace (especially Diagou shoppers)
• MD/CEO - Geoff Babidge (experience + skin in the game - equivalent shares to 20x annual salary)
• Strategic holding in Synlait Milk (improving their production schedule) (March-2017)
  
• Valuation Upgrades +6% above previous estimations (26-April-2017) - NZ$525Mill
  • http://www.asx.com.au/asxpdf/20170426/pdf/43hqgmj1czjcxg.pdf
• Another Valuation Upgrade + 4% above recent valuation upgrade (June-2017) - NZ$545Mill
• Global expansion/interest in A2M proprietary knowledge
• Balance sheet in great shape

Risks:

• Any potential damage to A2 brand

 

Have you read The Zurich Axioms? It is a great little read that touches on this in quite a bit of detail.

 

Never heard of it - would be interested to know more.

 

It's a great book on some share investment strategies by a Swiss bankers son living in the US. From memory it was an easy read and I got quite a bit out of it. I am by no means active in shares at the moment, however, I will be in the future and will definitely be reading it again a couple of times prior to jumping in.

 

Have you looked at Telstra lately?

 

Hi jchan86

I live your analysis of A2 Milk and agree with all of it 100%. May I ask is A2M something that you have particular interest in or do you do a bit of share investing and analyse other companies in the same you have looked at A2M?

Regards,

alicudi

 

I analyse a few companies of interest but try to do a deep dive. Keep tabs on the companies and then look for opportunities (e.g., recent movements like with RFG and BWX)

Still learning though. Adopt a fundamental analysis approach with thoughts for the long haul.
Same approach I take to investing in real estate... you don't need to be an expert at eveything... know your strengths/interests and leverage those whilst not diluting research efforts everywhere

 

Hi

Well I am very impressed of your analysis of A2M. It is the only company that I know everything about and I thought for a moment that you had some internal relationship/knowledge with the company. If you analyse the fundamentals to that level on all of your share investments I would appreciate to know how long you have been investing in shares for and what your average returns are, that is if you are prepared to share that some of information.

Regards,

alicudi

 

PM sent; hope it helps

 

Being a contrarian , with this much interest is it time to sell and buy in again when it retracts

 

$4.65 now

 

who knows, if you have made the big $, I would be bailing, someone told me prices don't always go up would you believe

 

Very good results for A2M, a lot better than I expected. Reap the rewards.

 

FY17 reporting out today with a 5% jump in the share price from yesterday's close:

Revenue of NZ$549.5 million which is marginal NZ$4.5Mill improvement on their recent double upgrades:
+6% valuation upgrade on 26-April-2017 to NZ$525Mill;
+4% valuation upgrade June-2017 to NZ$545Mill;

Drink Up!

 

I know - found that out the hard way with SRX. Almost doubled my money (and was going to sell) - left it two days too late, and for the past two years have been waiting to get it back up to a value worthy of selling (currently, less than what I paid for it..... )

 

Interview with Peter Nathan

 

Experienced almost 40% growth in my A2M share holding, but regret not buying them earlier! Good fortunes for all.

 

$5.02 today, missed the boat, what's the next hot tip?

 

Placed limit order to sell half A2M holdings at $5.45.

Will aim to buy back lower, still deciding on re-entry prices, need to see where and when pivot high forms and price retracement behaviour first.

No advice

 

Sold half holdings at $5.45 for + 38 % in a few months. Once we have more bars on the chart will use TA to set a buy back price.