What is the stock?
The A2 Milk Company Limited (A2M)
How long have you held the stock?
On and off since 2015. First foray into the stock was at $0.495! It’s been a big lesson in not selling a stock while it is in an upgrade cycle.
What do you like about it?
This is a company that is in the early stages of a transformation from an Australian/NZ dairy company into a global dairy company.
How is it better than its competitors?
It has a marketing edge with the marketing of A2 protein, premium product in a category where people are willing to spend, margins have been growing and good control over the manufacturing process.
What is your target price?
It’s already looking expensive but happy to hold while upgrades continue.
At what point would you sell it?
I’d be reducing holding if an upgrade does not materialise at the AGM on 21 November.
How much has it added (subtracted) to your overall portfolio over the last 12 months?
It’s been responsible for 30% of the growth in the portfolio over last 12 months which has seen a return 27.8%. I’ve bought a few times at $2.44, a year ago, $2.44, $3.75, $4.48. The last time I bought the stock was just before its result in September at $4.48. The stock has increased by more 50% just since September this year.
Where do you see value?
I see value in Blackmores at the moment. Regulatory risk has died down. Growth and margins provided at 1st quarter update looks good.
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