A2M 8.89% $6.25 the a2 milk company limited

"Big investment loss"? A2 plans to invest 20 million in three...

  1. 235 Posts.
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    "Big investment loss"? A2 plans to invest 20 million in three years, which is 7 million each year in average? That's not much compared with the booming sales of Baby formula. Plus, it is investment, not expense. Like what I said earlier, as long as A2 doesnt get excited by sales of baby formula and make aggressive investment in US, as long as A2 put its feet on the ground. "We can afford a few years loss in US", It is never easy when entering new market, A2 suffered loss when it entered into Australia, so is UK market, but A2 Australia set up a good example.
    As I know, A2 CEO Geoffery Babidge used to be a partner of big accounting firm, surely he knows how to manage its own Finance. I think he is a conservative man. Every A2 shareholders know the net loss last year, but it included one-off expense. Put ASX listing cost and Employee Share Scheme cost aside, it also incurred big amount of consulting expense, which I think it is for entering US market. FY 2015 expense already included initial expense related to US market but which contributed little sales to the group during FY2015.
    I am not comparing A2 to any other shares because A2 is the only one! No one can predict future, like no one predicted the big jump on last Friday. (otherwise it is inside trading) I was surprised by the jump as well and there may be corrections (who knows), but from long-term, it is just not enough!
 
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