Another interesting week upcoming. I think commodities will be...

Another interesting week upcoming. I think commodities will be the news an awful lot.

I've come to know that A2M is of big interest to many funds, yet they still are not in sync with many key particulars regarding the company. I came across such a commentary on Friday and had to face-palm myself. The assertions made was a divergent from truth, yet still pro A2M, but could be more intellectual than rambling wrong numbers and company trajectory.  I hope us all to be on the same page as well.

Products sales growth
A2M has 3 distinct product categories (for now); Milk, Infant formula, and Adult Formula.
Adult Nutrition or adult milk powder sales has grown by 124% when compared to the previous figures. This is a massive result and it should be respected. This second half, another adult nutrition product, a pregnancy formula has also been announced and will start to hit shelves. This product was conceptualised sometime ago and has come to reality, so we are talking growth on growth.

Cash equivalent position
This is where it gets really tricky for some. That cash position that was reported was for this half-year, not a full year. Please for the love of god, do not get confused here. The projected
cash at the end of this FY18 might be around $300 million, which is a simple outcome of less marketing spend and no significant CAPEX. To be more realistic, the figure will sit around $290 million after factoring in a flagged higher marketing spend. Now A2M also owns $111 million worth other financial assets (shares) which is also available to them if need be and disposed off if there's a significant value proposition. This would leave A2M with buying strength position of $400+ million.

Now what can A2M do with such a spendable position? I think christmas might come early for A2M holders.