Motley fool
Why a2 Milk Company Ltd (Australia) shares sank 8% lower today
James Mickleboro | November 1, 2017 | More on: A2M
In early trade the a2 Milk Company Ltd (Australia) (ASX: A2M) share price had a terrible start and sank over 8% lower to $6.98.
It has since rebounded and is lower by just over 3.5% to $7.34.
Why did its shares sink lower?
With no news out of the company or broker notes to speak of, it is likely that investors have been spooked by a change in substantial holding announced yesterday afternoon.
According to the announcement, Colonial First State Asset Management has trimmed back its holding in the dairy company from a 6.4% stake to a 5.4% stake.
Although no explanation was given for the selling, it is likely that the asset manager has decided to take a bit of profit off the table following its stellar share price gain this year.
After all, a2 Milk’s shares are up well over 250% since the start of the year thanks to impressive sales into the lucrative China market.
Should you buy the dip?
While I think a2 Milk is one of the best buy and hold investment options on the market, I wouldn’t be a buyer at this share price.
At least not until the company has held its annual general meeting later this month. If it fails to deliver a sales update which justifies the recent share price gains, then there’s every chance that its shares could tumble lower.
In light of this, I think the prudent thing to do is to keep your powder dry and wait patiently for its November 22 meeting
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Last
$5.56 |
Change
0.030(0.54%) |
Mkt cap ! $4.025B |
Open | High | Low | Value | Volume |
$5.50 | $5.61 | $5.49 | $7.155M | 1.289M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 6277 | $5.54 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$5.57 | 11611 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 3438 | 5.520 |
2 | 2700 | 5.500 |
1 | 3000 | 5.490 |
2 | 6000 | 5.480 |
2 | 4049 | 5.470 |
Price($) | Vol. | No. |
---|---|---|
5.580 | 1000 | 1 |
5.610 | 1553 | 1 |
5.630 | 5000 | 1 |
5.650 | 220 | 2 |
5.660 | 4000 | 1 |
Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
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