MENU

Why the A2 Milk Company Ltd (ASX: A2M) share price is climbing today

A2 Milk Company Ltd (ASX: A2M) had a fantastic year with the share price up over 200%. At the time of writing, the company’s share price was up 5% after being sold down following a disappointing investor presentation by the company on 16 May, which indicated lower revenue in FY18 by around 5%. 

According to analysts, the main reason for the lower forecast revenue is related to a change in the packaging for the baby formula, which resulted in the holding back of some product until the change took place. 

A2 Milk Company sources and supplies the A2 brand of milk in Australia as well as owning the intellectual property. The company also supplies the A2 brand of milk in New Zealand and the United Kingdom. The company is trading on a forward price-earnings-ratio of 40x. 

Other companies bouncing today include Aristocrat Leisure Limited (ASX: ALL) and Metcash Limited (ASX: MTS). 

This “Holy Grail” Technology Could Produce World’s First Trillionaire

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

And when a tech billionaire – several times over – speaks, it pays to listen.

This could be your chance to get in on the ground floor!

Click here to discover a $19.9 trillion dollar idea — hidden in plain sight!

Motley Fool contributor Rosemary Steinfort has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.