The market does what the market does for whatever reason it does...

The market does what the market does for whatever reason it does it. Australia's tension with China has influenced those that think A2M is an Australian company and the lack of air travel has reduced the Daigou sales out of AU.

Also I suspect there will have been a fair few Margin loan calls that would have prompted selling from retail holders.

At the end of the day you look at fundamentals and risks;
1. Are the company fundamentals still the same - Yes, they are still selling product and making a profit. However growth has slowed due to a black swan event. So their sales growth has probably slowed but we are told their store sales in China are growing so teh market has shiftet and they are not making the 31% margin on retail sales in AU to Daigou anymore.
2. Is there any loans/ ownership event tied to a share price drop - No, so the company cannot be taken over by someone they owe money too
3. Do they have funds to continue trading? - Yes, and then some
4. Will the black swan event change/cease in time - Yes, but no ones 100% sure when
5. Is there any other events interfering with sales/ revenue - Yes;
a. Logistics are nasty at the moment with port costs etc rising and containers hard to get, however the product is still getting to market
b. USA has been severely disrupted by Covid and market penetration there would have been disrupted
6. Anything else affecting it - No, China's slowing baby growth rate doesn't really play into eh mix as the market share of A2 means there is still plenty of market to gain with the existing volume.


Also be aware that there has been a constant 10-20M shorts sitting out there since around the $5-$6 mark. I have always assumed that these were black swan insurance, now maybe they are being cashed in as several big boys have taken some big loses in the market lately ... Who knows..... we will now when the shorts do a big drop and UBS etc no longer play the games.

I feel for those that bought in at the highs, that hurts, I bought more at $15 and $16 but my avg is under $5 and I continue to hold and will be looking at more soon.