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$6.91 the a2 milk company limited

FDA Approval, page-29

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learned_one

308 Posts.

38

11/06/22

06:18

Post #: 61952819
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Originally posted by talk-less: ↑

I agree, @jossette
The a2 Milk Company is the answer to all of their problems.
It was foreseeable that with the trade barriers and four domestic producers controlling 90% of the US market, they set themselves up for failure, but "America First" and all that.
To protect the consumer, the FDA should break up the monopoly and introduce high-quality international players, allowing the free market to regulate itself while alleviating the pressure on the WIC program.
But over the past X years, I have lost faith in the USA doing what's best for herself. The American System is broken, and I don't see them finding a way to fix it soon. If only thoughts and prayers worked.
I do expect the US to accept a2m's offer of a few million tins of formula, as an 'outsider', to get them over the line, but will they let foreign companies stay and contribute to the market long term?
I wouldn't say I like our chances when it comes down to a vote, see image below, but it could be close.
I can hear it now; "They took our jobs. Took yer durr!"
a2 can counter that with the fact that they are in a fantastic position to offer an investment in manufacturing and creating jobs, expanding on what they have already built while setting themselves up to distribute throughout the entire continent, all while avoiding tariffs in the US.
Thinking out loud. Dream scenario, but some would prefer a special dividend, so who knows.
As you say, Abbott's reputation has been shredded, and China won't touch an Abbot tin for a long time.
The fallout will be far-reaching, and a2 will profit.
Interesting thought regarding the Indo-Pacific economic alliance.
I am focused on 618. I think the sales will provide many answers to what the future holds for the company.
Whatever happens in the US happens. It is out of our control, and while I will be disappointed, I will not blame the company if they don't open the doors and lay out the red carpet.

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Trouble is, A2 have only entered this current US infant formula fray grudgingly, and really only on the heels of the success of BUB's early and aggressive and ultimately successful offer to help offset the US problem. A2's publicly stated position, up until 2 weeks ago, was that they had no interest in entering the US market and were quite content to keep working on their China plan - even in the face of major regional Chinese Covid-related lockdowns. Complete stupidity. I sense that Bortolussi and his team of half-wits became embarrassed over the BUBs success and were basically forced to enter the fray to save face. Let's face it, Bortolussi was moderately successful selling women's panties for Hanes and probably should have stayed there. God knows what these ex-Hanes boys do after hours in front of the mirror in private!

A2M Price at posting: $4.51 Sentiment: Hold Disclosure: Held
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