A2M the a2 milk company limited

Thanks for sharing. I do agree that there could be some more...

  1. 4,818 Posts.
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    Thanks for sharing.

    I do agree that there could be some more media activity from A2M that sits outside of market announcements (and the occasional tip-off to journos).

    The problem arises once you consider how that plays out in practice.

    Let's stay A2M is seeing great early 618 sales and wants to share this. They know it is not necessarily price sensitive (as these sales are still a drop in a bucket compared to their overall revenue) but they want to keep holders positive and show things are tracking well.

    A2M puts out a press release: "A2M experiencing strong start to 618 sales in China" it gets picked up by news outlets and SP surges 15%. ASX issues please explain.

    So then they still have to issue an announcement anyway and probably poor cold water on it to say that it is not necessarily material, as they may have already factored it into guidance.

    It's a similar story for most things, new products, roadshows, etc. If the company announces it, it either looks too focused on the minutiae, or gets the market over reacts. Hence probably why they are happy to let these things trickle out via other sources and then just update/confirm during reporting.

    You can probably tell I'm that one guy who loves to play devil's advocate

    BTW - Anhui province, aren't they the naughty ones engaging in malicious pricing ! Looks like A2M marketing in town to sort them out...
    Last edited by werdplaya58: Friday, 13:52
 
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