On Friday 29/6 I received a phone call from A2m investor relations in response to an email I had sent in May in relation to the revenue downgrade one pager in May. They acknowledged my points that the one pager was rather brief of detail. They were of the view that it should have been read in conjunction with the presentation pack to Singapore and Hong Kong investors which was released thereafter that morning. They acknowledged that that was not widely understood by the market, nor me, although I read both, as did others.
They also acknowledged my points re need to provide details as to why revenues were lower than analyst expectations ie new packaging changeover and the fact that as year end approaches you gain greater clarity of revenues. I emphasised that Goldman Sachs had done a better job of explaining the change over in packaging. I said that some market commentators had inferred that there had been a drop off in demand in China. We agreed that such parties will interpret as they see fit.
They also agreed that it was somewhat unclear if marketing expenditures were more or less than previously communicated. Ie it was up to the reader to work this out. This should have been black and white and not subject to misinterpretation
They also stated that they carefully consider their communications so as to be in compliance with their continuous disclosure obligations ie not spruiking news for the sake of it
They stated that they put a lot of effort into their presentations which I acknowledged were very good and packed with information for the discerning
I thought it was good that they actually took the time to call me. It helped to clarify understanding for both parties and that they would take onboard the points I raised. It also shows to me they are professionals and can acknowledge feedback. They are focused on running the company which they acknowledge is a growth stock. See their presos re references to global possibilities and this if prof Woodford.
It’s important to emphasise that they only release news per their continuous disclosure obligations
Trust this helps clarify some matters and calls for updates.
It’s been a tough few months as well I know but
We have a long way to go and fy19 and beyond could be even better
Don’t sweat the small stuff and keep your eye on the end game/goal.
Andrew
A2M Price at posting:
$10.52 Sentiment: Hold Disclosure: Held
(20min delay)