I’ve sold my holding in A2M following the Synlait guidance...

I’ve sold my holding in A2M following the Synlait guidance announcement and prior to the agm.

Yes, there has absolutely been a fundamental change and A2M is heading into a lower growth paradigm for at least the FY17 financial year.

The Synlait guidance suggests FY17 infant formula growth for A2M will be in the order of 10 to 15%, if one allows generously for all other A2M market performance than it still becomes a struggle to suggest that A2M will achieve more than 10 to 20% overall revenue growth for FY17.

That is what I expect the market to receive as guidance on agm day. The difficulty for shareholders is that analyst consensus estimates, the market if you like, still remain at 45% growth for overall revenues.

So the market will probably experience a shock and a drop on agm day, in my opinion.

My present valuation for A2M is generously NZ$1.60, so A2M a sell at this point in time in my view.
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