Buy Alert - A2 Milk (A2M)
It has been an incredibly tough time for A2M over the past 12 months with the share price halving as a combination of management issues and demand reductions thanks to COVID at a time when the company was maturing, and growth was becoming more difficult. As earnings growth deteriorated and the market lost faith in management, they experienced a significant P/E re-rate and a large short position (42m shares) built.
We have been looking at A2 for many months, targeting a move below $10. That has now played out and we believe a lot of negative news has already been built into the share price. We are bullish from current levels and are adding it to the Flagship Growth Portfolio around $10.10 with a 3% portfolio weighting.
We view this as a high risk stocks given their upcoming result and plan to hold over the medium term.
MM are buying A2M in the Flagship Growth Portfolio
– around $10.10 with a 3% portfolio weighting
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Sell Alert - Costa Group (CGC)
Costa Group (CGC) has enjoyed a strong resurgence over the past year and that has allowed MM to see a big improvement in our position.
We are using this strength to sell CGC and recycle funds into A2 Milk. We are cutting CGC for a small loss.
MM are selling CGC in the Flagship Growth Portfolio
– taking a small loss around $4.09
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