ATM-A2 MILK

[BlackPeter]

Apparently a key ingredient in infant formula

cheers - interesting. Always learning ;

[Left Field]

Crikey, ATM reached $7.00 in late trading on Friday.

I guess helped by Fonterra's upgrade? https://www.nzx.com/announcements/403744

Anyway......ATM up around 60% in last 6 months. A rare recent success story in a tough market.

[Left Field]

Holding above $7:00. Closed today up another 2% to $7.16 on reasonable volumes.

Possible impetus is the lifting of Covid restrictions in China.

[Left Field]

Another good day....... up 2.5% to $NZ7.34

Looks like the ASX is heading to $A7:00 as the next target.

ASX closed up 4.21% to $A 6.93

ATM now up about 70% from recent lows.

[Left Field]

From HC - it appears a major competitor to ATM in the Chinese market is withdrawing...

Here's a translation of  edited parts of the Chinese article.

"At noon on December 14, according to related reports, Abbott Nutrition announced a business adjustment, gradually stopping the operation and sales of infant and children's nutrition products in the Chinese mainland market.

"In the next year, we will cooperate with all relevant parties to gradually stop our Abbott infant and children's nutrition products business in the Chinese mainland market."

Why did Abbott suddenly make such a decision?

"The first reason is that Abbott has had too many brand negatives in recent years, which has caused significant damage to the brand attributes in the minds of Chinese consumers....

The second point is that Abbott has not been very successful in its marketing plan in recent years. .... its market share has been declining.

The third point is the milk powder safety incident this year, which had a great impact on Abbott's formula registration in China, which is also an important reason why Abbott had to withdraw from the Chinese market. "

[Minimoke]

From HC - it appears a major competitor to ATM in the Chinese market is withdrawing...

Here's a translation of  edited parts of the Chinese article.

"At noon on December 14, according to related reports, Abbott Nutrition announced a business adjustment, gradually stopping the operation and sales of infant and children's nutrition products in the Chinese mainland market.

"In the next year, we will cooperate with all relevant parties to gradually stop our Abbott infant and children's nutrition products business in the Chinese mainland market."

Why did Abbott suddenly make such a decision?

"The first reason is that Abbott has had too many brand negatives in recent years, which has caused significant damage to the brand attributes in the minds of Chinese consumers....

The second point is that Abbott has not been very successful in its marketing plan in recent years. .... its market share has been declining.

The third point is the milk powder safety incident this year, which had a great impact on Abbott's formula registration in China, which is also an important reason why Abbott had to withdraw from the Chinese market. "

Maybe that's what caused the bounce over the last couple of days - though I see its settling back a bit today

[mcdongle]

Seems like Abbott have been having a lot of problems lately

[Left Field]

From a TA perspective ATM's SP looks to be on an uptrend. That's Good.

China opening up for 'business' again after lockdowns. That's Good.

China yet to face the reality of illness, deaths and a rampant Covid. That's not good.

Ssssooo it's not all rosey for ATM, and SP is likely to bounce around somewhat in the short term. Long term the trend is our friend.

He said hopefully

[Left Field]

Recent research validates what many ATM holders already know.....

https://academic.oup.com/jn/article-abstract/151/5/1061/6165053?redirectedFrom=fulltext

Abstract

"Acute-feeding and multiple-day studies have demonstrated that milk containing A2 β-casein only causes fewer symptoms of lactose intolerance (LI) than milk containing both A1 and A2 β-caseins. We conducted a single-meal study to evaluate the gastrointestinal (GI) tolerance of milk containing different concentrations of A1 and A2 β-casein proteins. This was a randomized, double-blind, crossover trial in 25 LI subjects with maldigestion and an additional eight lactose maldigesters who did not meet the QLCSS criteria. Subjects received each of four types of milk (milk containing A2 β-casein protein only, Jersey milk, conventional milk, and lactose-free milk) after overnight fasting. Symptoms of GI intolerance and breath hydrogen concentrations were analyzed for 6 h after ingestion of each type of milk. In an analysis of the 25 LI subjects, total symptom score for abdominal pain was lower following consumption of milk containing A2 β-casein only, compared with conventional milk (p = 0.004). Post hoc analysis with lactose maldigesters revealed statistically significantly improved symptom scores (p = 0.04) and lower hydrogen production (p = 0.04) following consumption of milk containing A2 β-casein only compared with conventional milk. Consumption of milk containing A2 β-casein only is associated with fewer GI symptoms than consumption of conventional milk in lactose maldigesters."

And if the research isn't enough; ATM has launched fresh lactose milk in Australia.

[BlackPeter]

Recent research validates what many ATM holders already know.....

https://academic.oup.com/jn/article-abstract/151/5/1061/6165053?redirectedFrom=fulltext

Not sure whether holding the shares improves the memory. Does it? Otherwise, yes, it does sound like another confirmation that A2 milk seems to have some benefits to some people. We all assumed that, didn't we?

Not quite sure though, why this recognition would be of particular benefit for the A2 company. Everybody can sell A2 milk (and everybody does). No IP. Its like discovering that eating pizza reduces hunger (which is good as well), but does this make RBD rich?

[Left Field]

BP, FYI simply not correct to say ATM has "no IP".

Here's a sample from the last FY22 accounts which shows the value of their IP and R&D increasing over past years.

Trademarks are allocated to the following cash generating units (CGUs) for the purpose of impairment testing: Australia and New Zealand $304,000 (2021: $283,000); China and Other Asia $3,436,000 (2021: $3,376,000); USA $165,000 (2021: $153,000). During the year the total value of research and development costs expensed was $4,389,000 (2021: $2,506,000)........

Just saying....

(FWIW I recall ATM fighting (and winning)  several past IP  legal battles in Australia. Not sure of the status of their current USA case.)

[BlackPeter]

BP, FYI simply not correct to say ATM has "no IP".

Here's a sample from the last FY22 accounts which shows the value of their IP and R&D increasing over past years.

Trademarks are allocated to the following cash generating units (CGUs) for the purpose of impairment testing: Australia and New Zealand $304,000 (2021: $283,000); China and Other Asia $3,436,000 (2021: $3,376,000); USA $165,000 (2021: $153,000). During the year the total value of research and development costs expensed was $4,389,000 (2021: $2,506,000)........

Just saying....

(FWIW I recall ATM fighting (and winning)  several past IP  legal battles in Australia. Not sure of the status of their current USA case.)

OK - they do have some IP - as far as I am aware related to the herd testing of A2 cows.

That's good.

What I meant is:
 - Anybody can hold and breed A2 cows without asking them and without infringing their IP.
 - Anybody can test their cows for A2 (though it might be a bit more expensive without the ATM patent, but you only need to do that once per cow or if you know you have an A2 herd, you don't need to do that at all.
 - Anybody can and is allowed to sell their A2 milk as A2 milk without infringing their IP.

ATM's "IP" moat is as effetive as the moat around a castle filled with soil.

[Left Field]

Glad to see you now agree that ATM does have some IP.

Perhaps you also will agree that ATM has considerable Trade Mark protection that has already won legal cases, particularly in the Australian market.

Perhaps you will also agree that Trade Marks can be very valuable, just ask Coca Cola in an industry where many other competitors can make a 'cola."

Perhaps you will one day understand why Fonterra has licensed the A2 Brand in NZ.

But perhaps not.

[BlackPeter]

Glad to see you now agree that ATM does have some IP.

Perhaps you also will agree that ATM has considerable Trade Mark protection that has already won legal cases, particularly in the Australian market.

Perhaps you will also agree that Trade Marks can be very valuable, just ask Coca Cola in an industry where many other competitors can make a 'cola."

Perhaps you will one day understand why Fonterra has licensed the A2 Brand in NZ.

But perhaps not.

Amazing ... softly falls the condescenison ;P . You clearly try to tune into the spirit of the season, but it appears you have got an attitude problem.

Look - I am sorry for you if you lost heaps with ATM (as many investors did) ... but you won't fix this issue by pointing aggression and arrogance towards other posters. Behaviour like that won't ramp the share price up, it only might kill a sensible discussion and take others an opportunity to learn.

Anyway. I hope at some stage the spirit of Christmas will meet you as well.

Related to your "argument"- have a good read of the ATM thread on the other forum and thatn go over to hotcopper. No fun, but maybe a useful reading for the quiet time. All your "arguments" have been already boosted when ATM's shareprice was 3 times of what it is today (and this is not a long time ago). Neither these arguments nor the absolute arrogance and aggression of some other posters on sharetrader and hotcopper did help to keep the share price up, it just made everybody feeling miserable.

Have a good life.

[Left Field]

Look - I am sorry for you if you lost heaps with ATM (as many investors did) ...
.....Have a good life.

You  now claim I lost heaps with ATM.

I got the abacus out and here's how my investment in ATM has worked out FYI.

In the last 12 months ATM's SP low was $4.20. Yesterday it closed at $7.10 That's a gain of 69% in 2022. During the same time the NZX fell 11.8%

I first purchased ATM in Jan 2013 at .53c a share. At yesterday's close of $7.10 my 'loss' as you claim, is actually a gain of 1,239% .

Thus on an annual basis over the last 10 years ATM has yielded me a 123% pa SP growth.

I appreciate that some investors who purchased ATM at higher prices may currently be in a loss situation,  and as a long term investor I understand the pain.  However all investing is about DYOR and taking responsibility for your own decisions.

I wish you well and merely wanted to correct some of the incorrect statements you have made re ATM's IP  and my investments.

I'll say no more now on this topic and wish you a happy life too.