A2M 4.32% $7.01 the a2 milk company limited

Why holding so much cash?, page-21

  1. 359 Posts.
    lightbulb Created with Sketch. 2
    Well they've done it up till now without the benefit of your superior advice. A2 products pay a good margin and don't need vast amounts of market subvention.

    Again you have avoided providing any real answers, but you talk about simple economics. Well, part of the economic equation is that there's only a limited amount of A2 product available for "rolling out" into new markets worldwide. It earns premium prices because consumers are aware of its health advantages, often based on personal and anecdotal experience..

    Learn a bit about the realities of A2 production and you may begin to understand it is not just any old typical commodity that depends on huge expenditure to persuade millions of consumers to look at it.
    Last edited by monsooner: 29/09/16
 
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