Chart Update, page-12245

A little bit of observation. The downward trajectory trend established on that chart was not broken back into during the sell off last week, despite volumes of selling being higher than average historical volumes. Furthermore, the current reattempt at a consolidation trend break is on higher volumes.

I argue the stock is becoming a potential safe heaven. Reasons for a sell off I can think off include:
Potential reasons for sp depreciation or deceleration- Regulatory changes in china are a huge issue- Shunning of non-chinese brands in China would devastatea2m's revenue base- Scandal involving a2milk - Tarriff changes in China for Australiasian goods- Acquisition not liked by the market, and one thatends up being a poor fit and just increasing theoperating costs.

Whereas potential sp appreciation reasons I can think of include:
- Continuing venue for operating leverage. I argue verticalintegration strategies will achieve this. - Cost cutting, once marketing costs start to reducethe bottom line will be artifically inflated in a positivenote. Marking costs can not be fixed at such high levels- American, Canadian and Korean sales upgrades yoy can also help drive sp appreciation. - Increasing product mix- The release of dividends- I argue covid protection will boost the likeliness of thisstock being adopted to big portfolios + to the additionto the top50 index on the ASX

I'm always very hesitant to enter stocks in this stock pricerange as I feel the requirement for a 100% return isway too large, i.e. the need to reach $40 a sahre. But thenI think about ATM and the fact that it's opportunitiesto expand still exist. Ofcourse there isa risk the newmarkets fail like the UK, however I feel if operating leveragecan truly increase and growth in China continues to improvethrough this 200m additional market spend they've decided toventure in, maybe $40 isn't being unrealisitc for this company still demonstrating growth despite achieving above 1billionrevenue?