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Investing

My Portfolio On The 24th Of May 2021

Here’s how my portfolio of publicly listed shares looks on the 24th of May 2021.

As you can see, I culled my holding in ATM and bought some retail stocks (HLG & KMD) and a wafer of MFT stock.

Why I sold My ATM Shares

The thinking behind this was that ATM had indicated that they were looking to return shareholder wealth (attempt to push the share price up) with a share buyback scheme. While this is arguably a more tax efficient way to return wealth to shareholders, I was looking to hold for growth and then a dividend income. So in this very basic way, ATM no longer fitted in my portfolio. I needed to sell.

The next question was when they should be removed. The share price looked like it was still falling, with bad announcement after bad announcement. I had already lost my trust in the directorate during concerns around potential insider trading, but was feeling displeased with what I considered to be flowery words around the strategy in the reports.

The final straw was when I saw the LinkedIn suggestions of all the people working in ATM with “Strategy” in their job title, and my feeling of no strategy being successfully implemented – it reminded me of when I worked in a government IT department that had more managers, analysts, project managers, coordinators, etc. than actual qualified, hands-on IT workers (of which by my estimate, numbered less than 25%).

With this final feeling of frustration and disappointment as it seemed that money was not spent to get more MBS shops in China added to their stockists – which was part of the growth I was hoping to see, I sold my ATM shares a few weeks ago, before the share price dropped below $6.00.

To wrap up my final, final thoughts on ATM, I also have concerns that the price of their milk & infant formula is more expensive than other A2 branded milk. I was also displeased to read how long it would take for the recent acquisition to become profitable.

I believe that ATM have a superior product, but I have concerns that the market may not see it the same as I do, so I sincerely hope that ATM recover their position – my gut feeling is that they will once COVID is gone from the equation and we can see another great Kiwi success story, but that will be at least a year in my opinion – and there are other places I would rather have my money invested elsewhere, in order to enjoy a year or two’s growth and dividends before ATM recovers.

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