Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

A2 Milk (ASX:A2M) shares are trending up… Is the worst over now?

Shares in the A2 Milk Company Ltd were the 8th most traded on the ASX last week according to Commsec data.

Since reaching lows of just over $5 last month, A2’s shares have rallied close to 20% to the current share price of $6.03 at the time of writing.

Is the pain finally over for shareholders of A2?

A2M share price

Source: Rask Media A2M 1-year share price chart

What’s caused the share price turnaround?

When shares hit a 52-week low of $5.04 last month, that represented a drop in market valuation of close to 75% since reaching highs of over $20 per share last year.

Despite the challenges that A2 may still be up against, there comes a point where any company can start to look attractive solely based on valuation grounds.

Now that the trend appears to have reversed for the moment, some investors may be thinking the worst is over for the A2 share price.

What else?

Another catalyst that could explain some of the upwards movement in A2’s share price was the announcement of a Chinese policy change to allow couples to now have three children.

Prior to this policy, Chinese couples were limited to two children each as a way to curb explosive population growth.

The rationale here is that there could be an increased demand for A2’s infant nutrition products with a larger addressable market.

However, my colleague, Raymond Jang discusses in his recent article why this policy change might not have as much effect as some may think.

More recently, it was revealed that the US is investigating a reported leak at a Chinese nuclear power plant.

Not too much more information has been provided as of now, but it would seem that investors could be buying up A2’s shares thinking that consumers may preference imported products rather those that are domestically produced.

Is it finally time to buy shares?

There’s certainly been a change in the sentiment towards A2’s shares, but I’d rather be looking for evidence in the form of financial results before I would consider becoming a shareholder.

If your belief is that A2’s daigou and cross-border e-commerce (CBEC) channels will rebound to that of pre-COVID levels, the current share price may represent fantastic value.

This isn’t a belief I hold personally, as I think Chinese consumers will prefer domestic products over foreign brands such as A2. For a more detailed explanation on this, click here to read: A2 Milk (ASX: A2M) shares are now below $6… Is it finally time to buy?

If you want to become a better investor, I’d recommend getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.