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.
For Money Morning
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