TA price target 1.06 A2M, page-123

A2 has fallen quite a mile without any news. Yes, investors are getting spooked out and selling out....there's two ways this can head (obviously)

1) A2 Milk comes out with a depressing annual report - SP falls
2) A2 Milk comes out with a great report - SP will recover what it has lost in the last 2 weeks (More than 20%) and will go higher...meaning a single announcement can potentially cause a spike in the SP of over 30%.

This leads me to the next obvious question...what will the report be (positive or negative). Judging by the increase in support for premium milk (AHF ann today - http://www.asx.com.au/asxpdf/20160527/pdf/437jbp3qyn6gtb.pdf), I think locally we are okay and will most likely at least maintain the A2 forecast.

In the previous ann. in February by the A2 management, UK was set to break even by the end of 30 June, which is a positive...also meaning that going forward, the UK sector will likely to bring positive cash flow for the company.

With regards to China, multiple sources from management:
1) http://www.copyright link/news/worl...inese-avoid-blackmores-swisse-20160525-gp409e
2)

have been stating that their sales of infant formula, have been "very strong" despite the tax in April and that they are expecting "continual growth". Now, with the recent delay in the Chinese tax implementation for 1 year, this can only be an additional positive for the company.

Now I hope, I don't get flagged for unsubstantiated info lol. But in my honest opinion, I think A2 will provide a great result. There is always the regulatory risk of China, and I'm not here to deny that. This however, applies to every single company that does business with Chinese consumers. The thing that comforts me a little with this is that the product A2 is mainly selling to the Chinese are baby formula....which I would arguably say is a more inelastic product when compared to say items like luxury handbags or cosmetics.