ATM-A2 MILK

[Basil]

While all attention has been on SML's cap raise survival strategy, it seems ATM has negotiated themselves a much stronger position.

1.) ATM now has full control of its IP
2.) ATM is able to manufacture its IP products elsewhere, or with third parties
3.) ATM has negotiated a new production slot at Dundandel ( likely for a second China label SAMR product.)
4.) ATM is now a stronger partner with Bright Dairy in its control of SML
5.) Bright dairy now has a vested interest via a stronger partnership in helping ATM expand in the key market of China
6.) ATM's approx 76 mill new SML shares at $0.43 are at a substantial discount to Brights $0.60c.... and if the new SML shares start trading around $0.50c (as seems likely) then ATM is already 'in the money' with their new shares. 

Interesting times.

Good post but the elephant in the room which to date the market is not ignoring, is that we have a very low growth company with a subdued growth outlook trading on 27 times FY25's earnings.  Just as well growth is going to be much stronger in FY26 and beyond, or is it ?

[Left Field]

Basil I get your point. I've posted previously that ATM need to get MVM on line and diversify away from their reliance on China via other markets such as USA, Singapore, Sth Korea etc. I think they are in a strong position to do this successfully, but it won't happen overnight......

In the meantime I only have 3% of my portfolio allocated to Dairy via free-held ATM shares. Happy to sit on this. I've never held SML.





 

[Minimoke]

While all attention has been on SML's cap raise survival strategy, it seems ATM has negotiated themselves a much stronger position.

1.) ATM now has full control of its IP
2.) ATM is able to manufacture its IP products elsewhere, or with third parties
3.) ATM has negotiated a new production slot at Dundandel ( likely for a second China label SAMR product.)
4.) ATM is now a stronger partner with Bright Dairy in its control of SML
5.) Bright dairy now has a vested interest via a stronger partnership in helping ATM expand in the key market of China
6.) ATM's approx 76 mill new SML shares at $0.43 are at a substantial discount to Brights $0.60c.... and if the new SML shares start trading around $0.50c (as seems likely) then ATM is already 'in the money' with their new shares. 

Interesting times.

SML opened at$0.45. So it appears they have made a bit on their  added investment. But goes no way to recoup the SP losses from all the other cash they have pumped into Synlait.

I suppose A2 have come out of this reasonably well. They essentially have got what they need - which is DUnsandle. Along with support from Bright.

It does come with an anchor in Pokeno - so hopefully that rights itself.

This outcome has essentially cost A2 nothing  in the way of cash. So time for a dividend.

[Left Field]

Interesting developments in China could benefit ATM/Bright/SML

https://edition.cnn.com/2024/08/21/business/china-eu-dairy-trade-tariffs/index.html

[Left Field]

Crikey MVM not likely to be profitable till 2026/7......one wonders why?

https://www.stuff.co.nz/business/350387702/mataura-valley-milk-not-expected-be-profitable-until-2027

They are probably saying "good things take time."

[winner (n)]

Interesting developments in China could benefit ATM/Bright/SML

https://edition.cnn.com/2024/08/21/business/china-eu-dairy-trade-tariffs/index.html

Investing in shiny steel was always going to be a drag on profits

One reason I hope they dont end buying a big factory

[Teitei]

Investing in shiny steel was always going to be a drag on profits

One reason I hope they dont end buying a big factory

Likewise sitting on $650+ cash year after year.

[winner (n)]

Trading halt ASX

What's up guys

[Minimoke]

Trading halt ASX

What's up guys

Had a big spike in SP earlier on. And then a big drop.

[Minimoke]

Heres the action on the ASX today. Note opening SP. Early trades and volume

You cannot view this attachment.

[Greekwatchdog]

Possible take over offer, let the games begin.

https://api.nzx.com/public/announcement/439048/attachment/428317/439048-428317.pdf

[winner (n)]

Wonder who they acquiring

Maybe one of the Fontera brands ...or an Aussie company?

[Minimoke]

Wonder who they acquiring

Maybe one of the Fontera brands ...or an Aussie company?

Presumably it is reasonably substantial given it will take until Tuesday to write up the announcement.

[winner (n)]

Presumably it is reasonably substantial given it will take until Tuesday to write up the announcement.

Hope it's not heaps more stainless steel ....marketing is their game

[winner (n)]

Be funny if they bought Synlait ...
But no way