Yep, I'm calling it - I've officially lost confidence in management.
I've been on the train since $1 and topped up along the ride because I believed in a company that was forward thinking, responsive and revolutionary.
All the reasons I invested, and continued to invest, and believe are gone.
Whilst the move to ship baby formula to the US may not be part of the strategic outlook, success comes from taking advantage of both strategic and tactical opportunities. And as A2M were coming up with excuses as to why it couldn't or wouldn't, BUBS was mentioned by the President of the United States and made front page news at Reuters. Even if we had no plans to roll out infant formula long term in the market, can you imagine the boost this would have been for A2 brand recognition in the (allegedly) strategic fresh milk sector in the US?!?
In so far as the focus being on "maximising our opportunity in China, as outlined at our Investor Day in October 2021", I'd be right behind that if our share price hadn't capitulated from $7.39 at the time to a touch over $4. Where is the evidence this strategy is yielding results - because I haven't seen anything positive coming out of the company in over half a year, so all we've got to go on are a a bunch of excuses for not responding to things the competition has (which has led to a recovery in *their* share price) and a continuing erosion of our financial investments in the company.
Don't get me wrong - I don't think management are completely incompetent... I just don't believe they are the visionaries, the risk takers, the brilliant minds that made people believe in better and turned a milk company into a tech sector darling. A2M is going with the flow and is no longer a champion of its own destiny.
I'll hold, because I don't have to sell. But unless that inspiration up top returns, I'll be cashing out once the effects of Covid have cleared (which I believe are artificially curtailing company value right now). With the current stable of leadership, I just can't see this being a market outperformer.
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