From today’s Coppo Report oA2Milk{10.81 -0.06 -0.55%} yesterday...

From today’s Coppo Report

oA2Milk{10.81 -0.06 -0.55%} yesterday we saw A2M sold off -3.8% with many dismayed & disappointed after its chief executive Jayne Hrdlicka sold all her shares in the company (worth $4.3m) – the reason was to pay a “tax bill”. I have no doubt that is correct, but no matter why is still looks so bad when a new CEO (just 3 months into the job) sells every single share they own (but does have exposure – or ‘skin in the game’ - via options coming later). I had one retail shareholder say that “should I also sell all my shares, if the CEO has that can’t be good”– they were serious – I said NO … Others just could not believe a CEO would do that. Was there no other way ? Who knows. This does not impact the company in any way – yes it hits the share price & maybe a few PE points & probably means it’ll be hard for the share price to rally too far in the next month or 2. Plus maybe the shorters will see that as a great opportunity to hit the stock while its down before any new news flow comes (i'll keep an eye on them). One thing investors remember was when Bellamy’s executives sold all their shares. Now that was different as (1) it was done rather secretly and a few wondered why (2) there was more than 1 director selling – which is always a really bad signal & (3) the company was decimated by poor performance after this.   For A2M I see this as a distraction – like being at a BBQ and a fly keeps landing on your burnt sausage – annoying & frustrating – but it will soon pass & be forgotten.. A2M is a BUY here…