So you seem to be agreeing with me here. Converting a herd to A2 is only taking production from other retailers/wholesalers, and moreover they can't take 100% of another dairy suppliers herd as not all the cows are A2, plus it requires genetic testing etc etc which is all going to cost money and take time. If the curent A2 dairy farmers want to increase production they will likely need land to run these EXTRA cows on, unless they are not already at capacity, which at this stage I would guess most would be close to. Thus imo the growth rate that some folks are basing their SP estimates on is not in fact doable in the short term. I'd be 'confident' that synlait have contracts with other wholesalers/retailers, thus they would need a ramp up in production to meet a ramp up in the forecast demand from A2, again this will take time, bringing on NEW production will take a couple of years as breeding programs ramp up. You're kidding yourself if you can't see this. And just for the record even the 14day RSI has not been in oversold territory for months, and it certainly isn't now, 'oversold' would be when RSI is around 30 and below, not when it is simply below 50. Perhaps holders are all banking on a significant price increase to meet their insatiable appetite for growth.
A2M Price at posting:
$1.65 Sentiment: Sell Disclosure: Not Held
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