I’m not a regular poster here, you can call me a newbie, but I...

I’m not a regular poster here, you can call me a newbie, but I would like to post my own thoughts on the current free fall of A2M’s SP.

I’ve taken interest in A2M stock for quite a number of months now. Having thoroughly researched A2M I’ve finally decided to invest in A2M, as I strongly believe that they are truly a great business with solid financials. Most importantly they are a company that has grown exponentially and continues to have very good growth prospects for the future and many years to come.

I think A2M has strategically aligned and well positioned itself for both competition and advancements with its deal with Fonterra, along with its expansion into new markets such as the US, and the launching of its new products such as pregnancy formula in 2H18.

A2M’s success in IF is partially or if not mostly due to the influence of Daigous and is dependent on the Daigou channel to maintain and increase it’s revenue stream in regards to IF. Like many posters have already mentioned already, A2M offers product differentiation and is purchased by mums who don’t mind to pay a premium price in return for its purity, quality and reputation. If not for this point, many daigous cannot make a living out of it, can they?

I have friends who are daigous, and the top brands that they are selling and have sold for than extensive period of time is A2M, which is constantly out of stock and their customers are loyal and place orders in advance to ensure they get it. It is then followed by Bellamy’s then Aptamil, they simply don’t promote any of the Nestle brands as it’s not in demand as the above mentioned.

As such, I personally don’t see Wyeth Atwo formula is much of a threat, but just another additional IF made available to the market in CHINA, not NZ/AUSTRALIA. If it was the other way around it would be a different story.

People are entitled to their opinions and this is mine. I’m not here to encourage people to buy or sell their shares as that is a decision for themselves to make. I’m just stating the reality of the daigou business and how it makes continuous and significant contribution to the A2M brand for those who do not realise the importance of it.

The market is always susceptible to volatility and there are bound to be ups and downs whether due to macro or industry related factors. It certainly is not a P&D stock. So I’d say just to sit back enjoy the ride for medium to LT holders. I, as many holders here have faith in this company.

GLTA & have a wonderful Easter holiday.