Ann: Appointment of Executive Director, page-76

A2M is a market leader but I don’t see how the contracts are all hot air. It’s no different from a mining company signing an off take agreement in some respects. The new ASIC rules also support disclosure of size and parties involved in contracts. You go to a bank as a developer and they will want to see some proof you can achieve pre-sales. The market is extensive and China won’t give a toss where the organic milk comes from as long as they get it. The margins are there and WHA have stated it does not see A2M being a competitor. In other words the addressable market is plenty large enough for more players.
China likes competition and A2M or anyone else does not have a life time guarantee of continued success. One contamination scare will smash a share price. I think WHA can just keep plodding away and get their CFDA. Once that happens, I think many people will see it’s real and things should change.
I’ve had products made in China, I’ve imported from China and I’ve exported fruit to China. They are about price,supply and Quality just like everyone else. Get that right and you should do ok.
The argument that big players like A2M are the only winners and upcoming companies won’t change that is a risky mind set. That’s like saying BHP is king and up and coming miners wont get scale.
WHA management have managed to raise $60m at 6 x the float price in a short period of time or 14 x your money at it s Hugh point. New companies can sometimes do things in much shorter time frames because they know the short cuts. They may partner up with the right aggressive people as well.
Everyone said Fortescue would never happen and it took RIO decades to do what they did in a fraction of the time frame. WHA has work to do, but it’s not junk from what I’ve seen so far.
There remains risk in everything we buy. Dyor.