DON'T PANIC A2 HOLDERS, YOU ARE IN A BETTER SPOT THAN MOST, page-356

Good luck to your future undertakings in the market. Deep pockets are lining up and lurking in the bush ready for the pounce on A2M and you’re leaving the party. Understand you had a Disallowed and your misus 30bagger , but true investors and market traders don’t stop there. In market , vast amount of wealth is made and positions built when people are panicking.

A few Q&A as food for thoughts
1) Is A2’s Covid issue an industry wide drag on earnings for others? ( Yes Bub Apitamil and other brands are all experiencing same issue. Mead Johnson recently had to write off a big chunk for IF loss due to Covid )

2) Is A2 an industry moat? ( I think so , and it will probably have the quickest recovery among all its peers)

3) Are A2m gaining market shares in China ? ( Yes their market share is increasing rapidly and they’re ramping up their awareness campaign / marketing in line with their expansion.

4) Is the pandemic close to an end and will Daigou improve ? ( Well vaccines are being rolled out and recent upbeat sentiment on travel shares indicates also. Foot traffic to Daigou shop will increase if not already doing so and logistics will improve from here on in)

5) Has all the dirty laundry been out and will there be a new downgrade? Has the potential downgrade already priced in ? ( Well, if they didn’t throw everything out in the last downgrade , I think the entire board need to go. If it wasn’t the reaction for a potential downgrade in the next report , why the sell-off ?

6) Are the big players buying? ( Yes Morgan Stanley and UBS are voraciously buying at current SP and building their position)

7) What’s the outlook for the SP ( Morgan Stanley MQ , UBS , JP Morgan have various SP target between $10.5-15 , City at $7.4 but acknowledge it will improve once Covid is over)

8) Is the SP going to slip further ? ( Well, you don’t pick a bottom every time in the market , do you? Is this even mathematically possible? The current forecast P/E is at 26-27 with pandemic close to an end and you want to start accumulating when P/E drifts towards 20? So have you seen what’s happening with FLT and WEB? Are they making profits at the moment and guaranteed to regain their market share?)

Good luck to your future pursuits. Adios Amigos