A2M 1.67% $6.48 the a2 milk company limited

Ok guys I was pondering a thing lately on A2m that inspite of it...

  1. 882 Posts.
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    Ok guys I was pondering a thing lately on A2m that inspite of it being asx55 stock, a consumer staple and defensive nature stock like Nestle, P&G and Unilever (may not be in the same league but still same sector) Y is A2M's SP so volatile....... I mean wen SP starts to fall y is it its fall not getting arrested between 10 to 15% (Y is it falling 15 to 25)........ After thinking a lot i found the answer in Analysts over built up expectation........ The example for it we saw in the recent results as well. Just before the results some analysts extropolated the online sales data into over all sales of the company and made the SP run up before results and we all know what happened on the results day and since......... All this for what was a great results but not so great.......... This is where we all need to give jayne all the creditcoz she has identified the problem and trying her best to rectify it (tempering analysts expectation down).

    Imo this effort will bring in much needed stability to the SP and also results in less manipulation of SP especially just before the results.

    Jayne ever since the results day till recently concluded strategy day in china has been consistent in her communication and the message is very clear she wants to temper the analysts expectations down and for all who have been questioning her communication ability need to think again coz she got the message out where it needs to go and results of it is very clear. Soon after the strategy day the fund houses have come up with their SP targets roughly between 15 to 17(still a whopping 20 to 40%)


    Now if u think about it, this will do 2 things firstly brings in the stability (I know its not there yet but once the dust settles) and secondly it gives the SP enough room to surprise us on the upside after the results (there wont be any more buy the rumor and sell sell the news but a stable upmove like Nestles of the world)............

    As i called before this fall of SP will soon be arrested IMO and should resume a slow steady and hopefully a sustained uptrend going forward

    All of the above is just my opinion only and Iam a average SS in the market (No expert)
    Please do your own research
    SS
 
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