Got milk? Why we are getting bullish on A2 Milk
The dogs of the ASX in 2021 had several names you can instantly think of – Nuix, Crown, AGL and perhaps – the worst of them all – A2 Milk (ASX:A2M).
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The company is the subject of two class action claims over its consistent downgrades in earnings. In late October during an investor day, Chief executive David Bortolussi outlined his new plan to overhaul its China strategy, which meant operating margins will be sacrificed for revenue growth.
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More recently, chairman David Hearn responded to shareholders’ concerns by saying the various updates were based on “the best information we had at the time.”
Enter Stuart Roberts from Stocks Down Under who says the worst days are behind us. Why? Listen in for his reasoning.
Disclosure: Stocks Down Under directors own shares in A2M.
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