ACOPY - The a2 Milk Company: Current Nutritional Science Suggests It's A Long-Term Sell
2024-06-24 10:10:22 ET
Summary
- The a2 Milk Company Limited sells dairy products containing a protein it claims to be easier to digest, but nutrition research suggests that consuming any dairy protein has negative health impacts.
- I expect the company's growth potential to be severely limited if this nutrition research is acted upon by consumers and regulators, since The a2 Milk Company Limited's only competitive advantage is protein-based.
- The company has performed well financially, despite facing recent pandemic-related challenges, but this does not make up for its potentially limited growth prospects.
Thesis
The a2 Milk Company Limited ( ACOPY , ACOPF ) is a company that sells special dairy products. It makes dairy that comes from cows just like other dairy, but a2 Milk's dairy is slightly different from ordinary dairy. In the past, a2 Milk implicitly claimed that its milk products are healthier than competitors' products due to a difference in milk protein, and nowadays a2 Milk explicitly states that this protein difference makes its milk products easier to digest....
The a2 Milk Company: Current Nutritional Science Suggests It's A Long-Term Sell