Ahh back from holiday, and come back to a2 disappointing again (management wont care they get overpaid regardless if retail get stolen from).
On travel i noticed while in Vietnam at the airport on arrival some people lugging in alot of a2 product (as came from Australia I assume purchased here). So seeing this at the airport i made sure to check the supermarkets shelves for a sight of a2... what did i find? Nothing. No formula, no milk product.
As china is failing apparently, it reiterates the argument against the management competence again and their iron strategy on focusing on China. I noticed to that Vietnam s definitely on the rise and there is some real wealth there, so why are management still pushing China so heavily which the instos use instability there as a weapon hence destroy the SP, when there is rising countries right next too.
Even Thailand is growing, lots of money being pumped from massive tourism, foreigners moving there and even the major corporations setting up shop there. Note that some areas there put Aussie infrastructure to shame despite being supposed developing. A2 could start to push these nations (NZ looked to increase trade with Thailand last year, thanks Nat), yet they dont. This could be a real way to see risks of china fud mitigated. If its there then likely people will buy, see plenty of other high end brands in both Thailand and Vietnam (Bno diff to aus prices, some even more) so clearly there is enough people buying expensive things.
Again in the new year we see weakness and is anybody even really sure what management are doing? A divvie sure, but the risk mitigation on china fud that is ever present is still there and management do nothing. Where is the targeting these new fast growing markets?
Take a look again at price 4 years ago when DB took over and now, garbage, how much has he leeched in salary now? Now is time to step up and add finally deal with the longstanding risks, Personally i would see him booted (as any employee with such poor performance would have been sent packing), sick of seeing CEO protection.
The report is next month, so what if gains 20% If good news, it wont cover half what was lost in aug drop. What about the rest since DB took over to recover? Divvie had better be a damn good one to make up for the bs that management has put retail through.
A2M Price at posting:
$5.61 Sentiment: Buy Disclosure: Held
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