For me its pretty simple. A2M is a very strong brand. Brand...

For me its pretty simple. A2M is a very strong brand. Brand equity is aspirational to all brands, and A2M has this in bucket loads. In-fact I would propose that A2M hasn't lost any brand equity during the recent downgrades, but rather lost market value due to the shift in supply and demand (and therefore missed forecast earnings) - caused by a global pandemic, which I assume we can agree is an outlier.

The new CEO is also a plus. He handled himself well at the most recent announcement where he 'kitchen-sinked' the current situation. Like Reckett, Danone, and Nestle, the A2M management team also suffered the impact of inventory surplus leading to the recent impairment. Think of it like this, the market in China is the field they all want to play on, and god-forbid if they ran out of inventory to give up market share. All the major players (Danone, Reckett, and Nestle) declared issues with excess inventory. A2M was not alone here.

Inventory is being rebalanced, a new marketing campaign and sales strategy for a 'proven strong brand' is being engineered, a new ERP system project is on-foot, and a new leadership team being built. Also, SEA is ripe for the introduction.

I am of the view that A2M will be a dominant force again. There is blood on the streets now. This ship will turn in my view. Opportunity now and whilst the negative sentiment continues, the opportunity will only get greater.