in Coppo Report re A2M today 2Milk {9.83 0.53 5.70%} BUY .. –...

in Coppo Report re A2M  today
2Milk {9.83 0.53 5.70%}

• BUY  .. – don’t forget in just over a week it goes into the MSCI – so will be even stronger late next week. I covered yesterday why stock was smacked & why mkt has got this wrong.  The stock has been hammered from $12.13 to $9.19 yesterday a drop of -24%. That’s a decent correction that is now over.
• There was very heavy selling by the Quant funds who looked at the numbers (but not into them) saw the “downgrade” & have been hammering it.
• The shorts have been increasing from 0.4% a month go to now 2.56%. Stock though today was very strong after a real piece of totally unexpected good news came out..
• today we saw some amazing numbers – mkt thought this would be a poor number as they wound down old labels – this number was not expected to be seen until the July 24 data release ..
• So this is a real (POSITIVE) shock … the big increase has come 2 mths ahead of schedule
• Obviously the key issue here will be how the “new” product sales are in Q1 FY 2019 post the recent announcement.
• Jonathon Snape didn’t think anyone was expecting a big month of Lyttleton exports given the label changeover, but the April data was surprisingly very strong, with record shipments to Australia and a resumption of volumes into China.
• The China is the important one as the new label product began printing in March and this may be seen as a sign that after months of selling down the pre-CFDA label(an inventory build was shipped in Sep-Cot ahead of CFDA registration to meet the Jan 1 landing deadline) , the restock following the sell through is beginning.
• Anyway a very positive set of numbers, he was expecting this to be a pretty average print, not the highest number since Oct’17 which included all the pre-CFDA stocking shipments.
• It should be noted that SM1 are the only exporter from Lyttleton, hence why it is viewed so widely & this is a really big number to watch…

TOTAL CHRISTCHURCH VOLUMES (SEAPORT)​

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