Tax loss selling in A2 Milk (A2M)

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Question asked 28/05/2021

Tax loss selling in A2 Milk (A2M)

Can I please ask why not wait till just before end of financial year? Wouldn't be too many holding winning positions in a2m and one would think there would be a lot of tax selling coming. Frank

Answer

Hi Frank,

A valid point however in MM’s view, tax loss selling will never be the dominate force in a liquid stock, it may influence the moves but it’s unlikely to dictate them. We clearly got our initial purchase wrong, the timing was off and on Thursday we allocated a further 2% of the MM Growth Portfolio, which is an aggressive play after the dairy business has more than halved in 2021. Our view is that a strong bounce is not far off and the next 6 months for A2M will be better than the last.

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A2 Milk (A2M)

LAST UPDATED 28/05/2021 17:09

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