I am a shareholder of A2M since 2017 with a small position and have never done really intensive DD on it. What I learned is that their latest half year report was well received by the market due to positive revenue-surprises. I had a quick look into the report and it doesn't look bad imo. Profitability in relation to invested capital (taking into account the huge cash-pile) does look good. But what concerns me is whether their suppy is secured. I learned that the majority of the supply for Infant milk is outsourced to Synlait - a company A2M is a 20 % shareholder of. They paid approx 280 m AUD for their stake Synlait seems to be in serious financial problems and insolvency is a concern. A2M did huge write-offs in their books on the Synlait-stake which lead to a charge of around 30 m AUD in the HY-report to write down the Syanlait-asset to appro 40 m AUD. I also learned that they aquired a 75% stake in a milk-supply-company called Mataura to bring supplies inhouse. my question is:
1. Will Mataura be able to supply the Infant milk-segment or parts of it ?
2. What happens when Synlait goes out of business - will A2M run out of supplies ?
Good profitability does not help if A2M loses the necessary supplies. I walked through their 2023 yearly report but didn't find any valuable information regarding this. 150 pages ob blabla and no word on this - imo - most interesting questions. Can anyone help me ?
- Forums
- ASX - By Stock
- Supply Side for A2M secured or not ?
I am a shareholder of A2M since 2017 with a small position and...
- There are more pages in this discussion • 17 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add A2M (ASX) to my watchlist
|
|||||
Last
$6.72 |
Change
-0.270(3.86%) |
Mkt cap ! $4.858B |
Open | High | Low | Value | Volume |
$6.96 | $6.98 | $6.63 | $20.41M | 3.023M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 50927 | $6.70 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.72 | 11848 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 750 | 6.670 |
4 | 53150 | 6.660 |
2 | 3391 | 6.650 |
2 | 22565 | 6.640 |
3 | 7272 | 6.630 |
Price($) | Vol. | No. |
---|---|---|
6.720 | 500 | 1 |
6.730 | 1011 | 1 |
6.760 | 4408 | 1 |
6.780 | 10000 | 1 |
6.800 | 80 | 1 |
Last trade - 16.10pm 17/06/2024 (20 minute delay) ? |
|
|||||
Last
$6.67 |
  |
Change
-0.270 ( 4.62 %) |
|||
Open | High | Low | Volume | ||
$6.97 | $6.98 | $6.63 | 1304757 | ||
Last updated 15.59pm 17/06/2024 ? |
Featured News
A2M (ASX) Chart |
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non Executive Director
Simon Kidston
Non Executive Director
SPONSORED BY The Market Online