A2 Milk’s Share Price Up 3.15% Following Good Six Months

By ,

Shares of A2 Milk Company Ltd [ASX:A2M] have been steadily climbing higher over the last month, upon recent news the company had established two new senior roles. A2 Milk have announced the roles of Chief Commercial Officer and Chief Technical Officer, aimed at improving strategic and technical capabilities.

A2 Milk’s share price is currently trading at $11.78.

What these roles mean for A2 Milk’s share price

It is only early days but the last few weeks of trading have seen shares in A2 milk pick up momentum, little by little.

Melanie Kansil, chief commercial officer (effective first half of 2019), deals directly with emerging markets in the UK. While Phil Rybinski, chief technical officer (effective April 2019), deals with existing quality and regulatory affairs, as well as product development.

Mr Rybinski’s role offers an integrated approach to quality, research and development and science, which if successful could keep supporting A2’s share price.

When a company as large as A2 Milk is actively expanding its senior positions, it can mean many things. It could be a good sign that the company is planning for bigger things.  Particularly as A2 milk has enjoyed a strong share price that has almost doubled its worth in two years due to China’s milk powder demands.

Or, it could be a sign of trouble here at home.

If the number of people buying milk suddenly decreases, which has been proven possible with the US having a 7% decline, then it certainly isn’t going to help A2 milk’s share price.

Plant based alternatives are vastly becoming not only available, but preferable to some households and cafes. This could potentially hurt the shares of A2.

In terms of big announcements, A2 has been pretty quiet. But there’s still a lot of things happening. For example, China’s deal with A2 Milk that is still seeing an effect on the share price.

A2 milk learns new lessons for 2019

In September 2018, the A2 Milk share price plummeted after CEO Jayne Hrdlicka sold $4 million of shares, naturally hurting A2’s value by placing doubt in investors’ minds.

But things quickly recovered. It looks as if things are turning around for A2 milk, but as to how far the share price can go is anyone’s guess.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Take a look at this Free report: Aussie stock picker, Sam Volkering (with gains as high as 1,431% in the last 18 months) reveals what he believes are his next four big potential winners. You can read more about it here for free. 

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

a2 Milk Share Price Sinks 11% on New Strategy (ASX:A2M)

‘Unprecedented change’ in the China infant formula market over the last 12 months led a2 Milk to alter its growth strategy, setting a medium-term goal of hitting NZ$2 billion in sales. a2 Milk Company [ASX:A2M] share price is currently trading for $6.09 a share, down 11%.

Bubs Share Price Soars 30% on Rebounding First Quarter Sales (ASX:BUB)

Bubs Australia Ltd [ASX:BUB] share price was up a significant 30% at time of writing. Despite the big jump, the infant formula stock is still down 40% over the last 12 months.

a2 Milk Share Price Falls on Class Action News (ASX:A2M)

The A2M share price tumbling 6%. The a2 Milk Company Ltd [ASX:A2M] is set to face a class action lawsuit led by Slater and Gordon on behalf of unhappy shareholders.

This 500% Gain Is Causing Headaches for Nearly Every Industry

In today’s Money Morning…backlogs for months…how to navigate a freight crisis…any company heavily reliant on exports may be at potential risk…and more…

Bubs Launches in the US, Share Price Jumps 25% (ASX:BUB)

The Bubs Australia Ltd’s [ASX:BUB] share price are up 26% after BUB’s infant formula range goes live on Walmart.com. BUB shares spiked as high as 32% in early trade.

What Does China’s Child Policy Mean for Bubs Share Price? (ASX:BUB)

After soaring on Tuesday, Bubs Australia Ltd’s [ASX:BUB] share price is currently down 7% today as the market assesses China’s child policy…