Sean's Quarterly Portfolio Review

Quarterly Portfolio Update as at 15.06.19

This is my second post of my current portfolio on Saul’s board. I have found the process of creating this post highly beneficial, and it has helped me make some further adjustments to my portfolio.

Results Summary:
US portfolio gains for CY 2019 (ex. Currency gains): 39.5%
Non-US portfolio gains for CY 2019: 41.3%
The US portfolio has been held back by Stone Co. falls in April as a result of FUD. I expect this will sort itself out by my next instalment.

I have a non-US bias in my portfolio, but interestingly, there is little difference in the performance of my US and non-US portfolios over the past three months. Comparing the two portfolios have actually helped me identify areas to improve / refine each set of investments, and the competitive tension I think will lead to better investment decisions. I am now highly motivated to ensure my Non-US portfolio can keep pace with my current US portfolio.
My investments are made via our superannuation trust (retirement fund) and our family trust. I have combined the holdings of these two trusts and have split the portfolio into two. US and non-US holdings. I thought my non-US holdings would be of some interest, and includes names that are not mentioned on this board.
My approach is to take a more cautious approach to buying and selling, so I tend to change positions less frequently than other posters on this board, and the past 3 months has seen a steady transition to US holdings and out of lower growth, lower conviction holdings. I have added some try out positions in businesses that I think have potential to generate great returns, and will wither add to them of sell if the thesis holds or breaks.
I use Sharesight to monitor returns of my portfolios. Sharesight uses a dollar-weighted (also referred to as a ‘money-weighted’) return methodology. A dollar-weighted return measures investment performance taking account of the size and timing of cash flows. I love this platform, and highly recommend it.
So here goes:

Current cash position (4.3%)
I have reduced my cash position, adding to both my Non-US and US portfolios – more on that below. I typically use cash as a hedge in my portfolio. I am looking to increase my cash position, but I do not see too many weeds in the garden at this point in time.

US Portfolio
No. 1 – TTD (10.7% - up from 7.3% previously)
• Market leader and innovator outside walled gardens
• Top US position due to steep valuation discount in December.
• Sector tailwinds, high margins, high growth.
• Keep an eye on: Walled gardens, disrupters, agencies starting up own platforms, Chinese adventure.
I increased my position in TDD, buying more between $176 and $186 over the past 3 months.

No. 2 – TWLO (7.1 % – up from 6.2% previously)
• Market leader and innovator
• Developer tailwinds.
• Sector tailwinds, high margins, high growth.
• Keep an eye on: gross margins, customer acquisition costs, changes in growth trajectory.
I increased my position in TWLO, buying more between $123 and $124 in May.

No.3 – MDB (6.4% – up from 5.3% previously)
• Undisputed market leader.
• Accelerating growth, with Atlas now driving faster growth. Crossing the chasm???
• Major transition to NoSQL database in the early stages.
• Keep an eye on competition from AMZN, and GOOGL. Watch for issues with Atlas (reliability/security/onboarding).
I increased my position in MDB, buying more between $144 and $145 in June.

No. 4 – AYX (4.8% - up from 3.9% previously)
• Undisputed market leader.
• Continuing strong growth.
• Keep an eye on competitio. Tableau buyout a positive

No. 5 – STNE (4.8% - up from 0% previously)
• Unique and effective customer service model.
• Continuing strong growth.
• Great profit margins.
• Great operational leverage.
• Maintain holding – Q2 results critical to confirm FUD competition event.

No.6 – SQ (3.5% - down from 4.1% previously)
• Market disrupter, optionality galore.
• Software business is growth driver.
• Keep an eye on competition from “local” incumbents (usually banks), lending / financing risk. Watch for declining growth or issues with onboarding merged companies.

No.7 – ESTC (3.1% - 0% previously)
• Leading data search provider.
• Leading innovator in the search space.
• Ever growing optionality.
• Open source model – keep an eye on copycat competitors.

No. 8 – OKTA (1.9% up from 1.3% previously)
• Undisputed market leader in identity / sign-on as a service.
• New product innovations increasing TAM.
• Strong growth.
• Keep an eye on new product adoption, net revenue per customer expansion. Questions regarding size of TAM.

No. 9 – ZS (1.4% up from 1.3% previously)
• Undisputed market leader.
• Accelerating growth, and huge TAM
• Keep an eye on competition. Although competition hindered by legacy products, and fear of market cannibalism.

No. 10 – FB (0.1% down from 2.7% previously)
• Leading social media platform.
• Growth slowing, regulatory risks, taxation risks.
• Holding to retain daughter’s interest in investing.

Positions sold since March 19, 2019:
I am quite happy with my portfolio, and I have only sold down to holdings.
• NTNX (100% of holdings)
• FB (95% of holdings)

Positions acquired since March 19, 2019:

Positions I added to include:
• ESTC – new position

US Portfolio percentage = 43.0%, up from 34.4% previously
US Portfolio Return since January 1, 2019 = 41.9% (includes currency gain 2.42%)

Non- US portfolio

Appen -APX (ASX) – (6.9% down from 7.4% previously)
• AI Data feeder.
• 100% annual profit and revenue growth, but revenue growth slowing.
• Consistently beats guidance.
• Establishing top dog status through strategic acquisitions (competitive threats)
• Recently acquired
• Threats – Watch out for AI disruption to service. Look out for top customers DIYing (akin to UBER and twilio).
Sold 8% of holdings to reduce exposure.

Xero – XRO (ASX) – (5.9% down from 6.3% previously)
• Leading SAAS accounting platform.
• Pure cloud play (unlike INTUIT).
• Revenue growth = 37% pa ; gross margins = 82.8% !
• Top dog in AUS, NZ, and UK.
• Watch performance in UAS (Intuit fighting back hard), watch to see UK growth and dominance continues.
• REDUCE POSITON. Revenue growth around 35% pa, but may begin to decelerate in 12-24 months as UK matures. Higher growth opportunities available.
Sold 8% of holding to reduce exposure.

Nearmap - NEA (ASX) – (5.9% - NO CHANGE)
• Leading SAAS geospatial service in Australia. Hyper growth in USA.
• First mover.
• 45% revenue growth, and accelerating from low 30s. US growth = 108% pa.
• Watch for disruption from GOOGL, and other competitors.
Sold 25% of holding to reduce exposure. Upon a review of the opportunity, perhaps it was a mistake to trim. :frowning:

Altium -ALU (ASX) – (5.3% down from 6.7%)
• Chip design software company.
• Top dog / market leader
• IoT is a huge tailwind for the company.
• Strong cashflow.
• Revenue growth of 24%, but net profit growth of 58% due to operational leverage. EBITDA Margin expansion at about 10-20% pa.

Pushpay – PPH (ASX) – (4.5%, up from 4.2%)
• Leading SAAS provider in the faith donations administration sector.
• Top dog - First mover.
• 35% revenue growth. Reached cashflow breakeven.
• Increasing gross margins.
• Watch for slowing growth as management focus on generating cash, stabilizing costs, watch for poor acquisition execution.

A2 Milk – A2M (ASX) – (4.1%, down from 4.3%)
• A2 the only A2 only protein milk producer.
• Capital light model – A2M outsources production.
• High margin for “premium” milk product.
• High growth in china, US, and UK. Currently 40%+ revenue growth. 50% in China and US.
• Great optionality, with infant formula yet to be released in US and UK markets. Huge growth runway.
• Watch for branding – vulnerable to customer whims, and reputational damage.
• China announced regulatory changes that may impact Daigou channel. Economic risks could greatly impact A2M. Monitor Daigou channel, and sell on signs of channel stuffing.

Wisetech Global – WTC (ASX) – (3.3% up from 1.6%)
• World’s leading SAAS supply chain / logistics platform – CargoWise.
• 68% revenue growth, NPAT up 48% (yes, hyper growth and profitable).
• 38 of the top 50 3rd party logistics providers use Wisetech products.
• 7 of the top 25 freight forwarders use CargoWise. Note: all the top 25 use a Wisetech product. Great expansion opportunity for transitioning all customers to the CargoWise platform.
• Customer attrition <1% pa.
• Existing customer revenue expansion: 127% pa.
• Acquires local logistics businesses to establish geographic foothold, increasing competitive moat.
• Watch for emerging competition, trade disruption.

Acquired more Wisetech as part of a capital raise at $20.90.

Afterpay Touch – APT (ASX) – (2.6% up from 0%)
• World’s leading buy now pay later lender.
• Business model is to take 4% of purchase price of item up to say, $1200, with the customer repaying Afterpay over 4 fortnightly installments. Retailers win by raising sales and bringing forward customer spending. Customers win by having a frictionless way of buying goods and services NOW, and not having to save for it (Very millennial).
• Current sales growth over 100% pa.
• Successful establishment in the US, with 7900 new customers signing up PER DAY. Afterpay active US customers have gone for 0 customers to 1.5 million in 12 months! It looks like Afterpay has crossed the chasm in the US, with a long way to run.
• With its runaway success. Australian regulators are auditing Afterpay’s anti-money laundering policies and safeguards. There is regulatory risk now for Afterpay in Australia, and costs will increase to address regulators requirements in the short term.
• UK version launched this month – it’s called Clearpay.
• Capital raising announced to accelerate global expansion.
Acquired Afterpay Touch in April and June at around $23.

Audinate – AD8 (ASX) – (2.2% up from 1.7%)
• World’s leading AV networking protocol, Dante (converts audio / video to digital signal).
• Sells to OEMs – Dante AV use cases – Sports Bars, conference rooms, classrooms, Courtrooms, retail AV, transport hubs.
• Adoption accelerating – Dante now the leading protocol.
• 51% revenue growth, with huge TAM.
• Tailwind with the adoption of zoom, which integrates with Audinate.
• Market penetration – 7=8% of audio, and 0% of video.
• Video product to be being released this year to double TAM.
• Cashflow positive.
• Watch for decline in adoption, slowing revenue growth.

HUB24 – HUB (ASX) – (2.4% down from 2.7%)
• No. 2 SAAS investment platform in Australia.
• FUA growth of 45% pa.
• 35% revenue growth, NPAT growth of 39%.
• Watch for margin compression – it is already happening, and operational leverage is affected.

Electro Optic Systems – EOS (ASX) – (2.1% up from 0%)
• Defence technology company, being a world leader in remote weapon systems, and satellite tracking/defence systems.
• Founder led, with impressive management team.
• Over $600 m order backlog, with a further pipeline of around $1.5 B in orders. Forecast revenue growth of 50% pa over the medium term.
• Satellite tracking and high power laser system also has non-military uses, such as clearing out space junk to protect commercial satellite assets.
• NPAT growth in line with revenue growth at an PE ratio of 18
• Watch for sovereign risk, and reputational risk with defence orders.
• HOLD at this level and monitor execution.

Acquired EOS at around $3.30 in May.

Readcloud – RCL (ASX) – (1.7% up from 0%)
• No. 1 digital learning / e-book platform in Australia.
• Over 100% revenue growth (off a low base).
• Over 100% revenue growth (off a low base).
• Gross margins only around 35-40%.
• Expansion into tertiary / vocational training is widening the TAM.

Acquired RCL at around $0.24 in MARCH.

Advance Nanotek – ANO (ASX) – (1.4% up from 0%)
• Innovator in cosmetics, with patented technology to produce nano particles of zinc oxide, making them invisible to the eye, yet the most effective sunscreen on the market.
• 100% revenue growth for 2019, ++50% growth expected for 2020.
• ANO struggling to keep supply up with demand.
• Massive tailwind as the demand is driven by desire for reef safe products and US FDA considering banning alternative sunscreen chemicals.
• Cashflow breakeven in 2020.
• Net profit margins good at around 40-45% as the company scales.
• Expansion into tertiary / vocational training is widening the TAM
• Management are either a little naïve or unprofessional with some announcements. Some funny business going on with bonuses and share purchases – red flag perhaps. No ne seems to care with a share price appreciation of 500% over 12 months.

Acquired ANO at around $4.00 in April.

Tinybeans – TNY (ASX) – (1.0% up from 0%)
• Facebook for Millennial families - secure and private.
• Big advertising wins, with Lego buying advertising on the site.
• 3 revenue streams, advertising, subscription, and printing revenue (for photos / memories)
• 143% revenue growth for Q3 2019.
• Subscriber growth at 29%, and retention rates around 80-85%. Acquires customers through relationships at hospitals, and work of mouth.
• CAC is 9c per customer, and $11.30 for a premium customer, whilst ARPU grew to $2.48 (89% growth pa).
• On track for cashflow breakeven.
• Revenue seasonal, with the peak revenue occurring in December.
• Google US trends indicates Tinybeans has the top dog in this segment.
• Focus has been on improving engagement on the platform, with a new content platform, and AI for advertisers to more effectively target customers. i.e. infant formula to families with babies, lego toys for infants, etc.
• THIS IS A TOUGH ONE TO EVALUATE IT COULD BE WORTH ZERO OR 500% MORE THAN IT IS NOW. SELL IF ARPU or customer growth slows. BUY if the opposite occurs.

Acquired TNY at around $1.12 in April.

Credible Labs – CRD (ASX) – (1.0% up from 0%)
• No. 1 student loan platform in the US.
• Expanding to personal loans and mortgages.
• Founder led – I like him – ex. Banker who saw an opportunity in the US student loan market.
• Highly scalable – lipping the ticket off loans sourced from the platform.
• Over 100% yoy loan growth
• Revenue up about 80% on PCP.
• Healthy cash balance

Acquired CRD at around $1.55 in May.

Knosys – KNO (ASX) – (0.9 % up from 0%)
• Enterprise knowledge platform SAAS.
• Over 100% revenue growth (off a low base).
• Gross margins only around 70-75%.
• Released new offering KIQ cloud, and has partnered up with Microsoft to market product.

Acquired KNO at around $0.09 in May.

Raiz Invest – RZI (ASX) – (0.8 % up from 0%)
• Mobile micro investment platform. Targeting millennials.
• Expanding to Indonesia and Malaysia.
• Provides access to ETFs, cash savings plans, at low fees. Revenue through 3 streams. Platform advertising, buy/sell spreads, and account fees.
• Revenue per customer growth: 40%
• Active customer growth: 30% pa.
• Advertising revenue growth: 330% off a low base.
• QUESTION ON RETENTION OF CUSTOMERS (AS THEIR WEALTH GROWS, THEY MOVE ON IT SEEMS). Yet to reach cashflow breakeven, but forecast to occur this calendar year.

Acquired RZI at around $0.5 in May.

Positions sold since March 19, 2019:
I sought to reduce my “de-worsificiation”, and offloaded a number of holdings where the thesis had broken, or their rpsopects did not compare favourably with other opportunities. .
• (BAP) –solid but increasingly stagnant car parts business. Better places for my money.
• Envirosuite (EVS) – growth story evaporated when it turned out SAAS revenue wasn’t so sticky and recurring.
• Nanosonics (NAN) – High valuation fo ra 30% annual revenue growth rate. Better places for my money
• Sold Redbubble (RBL) – rapid deceleration in revenue growth – thesis broken.
• Sold Vista group (VGL) – Revenue and profit growth solid in 25% pa category, but again, better places for my money.
• Trimmed Nearmap, Xero, Appen. Will not trim nearmap again unless thesis breaks.

Positions acquired since March 19, 2019:

• Afterpay Touch
• Readcloud, and added a second time after execution of good acquisition.
• Electro Optic System – hi quality business, well run. Investing in what is increasingly looking like killer robots is giving me second thoughts about the ethics of this investment though.
• Advance Nanotek – My confidence I growing in this one, as there appears to be a very strong tailwind behind it. May need to meet management to see what I am dealing with on key person risk.
• Tinybeans, Credible Labs, and Knosys are highly speculative investments, and it is possible all three may disappear form the portfolio in a short space of time. My intention is to whittle these three down to the one best idea.
• Added to Wisetech.

Non-US Portfolio percentage = 51.8%
Non-US Portfolio Return since January 1, 2019 = 41.3%

If you have any feedback, I would really appreciate it.


Quarterly Portfolio Update as at 15.06.19 This is my second post of my current portfolio on Saul’s board. I have found the process of creating this post highly beneficial, and it has helped me make some further adjustments to my portfolio… If you have any feedback, I would really appreciate it.

Sean, I loved your report, especially how you included, for each position, how you see it, what you like about it, what you are watching for, and what you have done recently and why. Brilliant. I don’t have to agree with everything you are doing but I can sure learn from it.


Hi Sean, thanks for sharing and I like how you formatted your positions summaries. It’s very clear with the bullet points and easy to read and reflect on.



Hi Sean,

Again, excellent! In addition to presenting great information, you are an outstanding writer, and it is a pleasure to read your posts. (This is also a strength of Saul’s; I wonder if there is a connection between investing acumen and writing ability? Probably not; Mark Twain was a notoriously poor investor . . . .)

From here on is JMO, given only because you are a nice guy and asked for feedback.

APT is just now getting hammered a bit due to regulatory concerns about money laundering, terrorist usage, etc. I think this is a short term problem that will be resolved with steps and maybe penalties that will not affect the main business over time, which (being small transactions by lots of users) is unlikely to depend on evildoer patronage. The larger issues, IMO, remain credit risk and regulatory risk relating to more the quotidian consumer creditor aspects of their business.

That said, I think APT is a great risk/reward proposition, given its growth in the vast greenfield of the US market (enhanced by the vigorous support on social media of the omnipresent influencer, Kim Kardashian!). It has grown to be my largest position, and I am OK with that, because despite its significant risks it does avoid some of the risks (e.g., political and macroeconomic) common to my high growth US stocks.

So I am glad to see you on the APT train! I would suggest considering using the current problems as an opportunity to increase your position, although of course that is JMO.

As before, I endorse ALU as well, and I like many of your other picks (e.g., AD8, NEA).

I am glad to see that NAN has disappeared, but again encourage you to consider PME in its place.

Also, well done sending BAP on its merry way; I would suggest doing the same with HUB. It appears you are (correctly, IMO) heading in that direction, and Saul has done a pretty good job of showing that there is no virtue in delaying once the writing is on the wall.

I know Joe M has long been a big supporter of XRO, but its troubles in penetrating the US market make me think its upside is limited. I would dump it and reinvest in your many higher-upside, higher conviction ideas.

Here is my only big disagreement with your portfolio: A2M. I understand its many strengths, but it comes with so many big, big risks. Milk? China? Where is the moat – a brand? No network effect, no switching costs . . . To double sales, you have to procure and sell twice as much milk – it is sort of like a hardware company, as opposed to a SaaS company. So, again, I see its attractions, but you have so many companies with upsides that are at least as good, and way less risk . . . . I know you disagree, though, and that is what makes a market, right?

I still find WTC uninteresting, but I am having trouble supporting this view, and may have to concede that you have the better side of this disagreement.

Finally, STNE – I don’t know . . . . Brazil? A highly competitive payments market where price competition with large market players is rampant? A business dependent on adding new clients, but where growth in net adds has been declining the last two quarters? I guess I am left wondering why bother with all this? The game is not worth the candle, maybe.

I just addressed areas of difference of opinion. Your portfolio is great, your analysis is great, and you undoubtedly will do better than I in terms of investing results, so please take the above with a grain or two of NaCl.

And best wishes; thanks again for a great and informative post.



Hi Sean,

Excellent write up and nice to see another Aussie on the board. I hold a few of the Australians names you do A2M, Altium and Nearmap (which is my favourite). Thanks for the tip on sharesite I’ve been looking for a new platform so I’ll check it out. Well done on an excellent year.


Thanks Sean for your review. Well written.
I am an Australia based investor as well. I share most of your views.
Though I have a non-US bias portfolio, my US returns are much higher than OS one. Thanks to the board and Saul. Last couple of write-ups by Saul is an art in investing.

I am in the transition from Non-US to US as well since mid last year. I did some research on WAAAX stocks I am heavily invested in and compare them with Saul type stocks. I think not all WAAAX are good value at this moment, like Rich said I am not very confident on XRO due to US expansion and relatively low growth.

I also agreen with Rich about A2M. Lots of risks are involved especially Chinese regulation changes.

I did my first deep dive of WTC on the board, WTC’s growth accelerated.

I felt that it was very tiresome to manage two portfolios(US and AU)so that I reduced the number of stocks in each portfolio. Currently I am sitting at 24-25 stocks for both. I am in the process to reduce the number of stocks further to 20.
Thanks again for your review and it is very informative.


Thanks for a clear summary that’s packed with useful ideas. I save these.

It may be OT but as a Canadian, similar to Sean, I look for companies to invest in
in $CAD so these need to be in Canada but A. (Most of my portfolio has been and is US) Besides SHOP, I’m not good such companies.And B. I don’t believe that there is anything SaaS with the qualities of the one followed here.

I only know of Kinaxis, Descartes, Open Text, Constellation Software but I already get why those don’t fit with smaller organic growths etc.



thank you again for your feedback. I really value your thoughts and feedback, and some of your comments from my previous portfolio review prompted me to take action.

I agree with you on APT.

PME is on the watchlist - It has been there a long time :frowning: Its success is outpacing my ability to value it. I should just take a starter positon when a half - opportunity arises - stay tuned.

HUB will be sold, it is just a fair way off its highs atm. If there is a fall in the market, it will get absolutely hammered, so I have set myself a time limit to exit. HUB has been good to me, and is a multi-bagger…but yes, the time has come me thinks.

XRO - I think XRO can continue to grow at around 35% for another year or two, under accelerating growth in the UK. But the US market is looking like death valley, as Intuit has it tightly sown up. It would have to change its platform to non-english versions for the ASEAN market - a big investment, and lower returns. I will reduce my position over time, but I will take things slowly.

A2M - I love A2M because I think I have an edge over analysts following the company, and I believe that as a consumer, we will see the signs of problems well before an analyst can conduct a write up. You see, A2M profit is driven by Chinese babies. Over 15 million babies were born in china last year. Of these 15 million babies, the majority go onto infant formula, and stay on infant formula intil 3-5 years old. Culturally, Chinese use a high proportion of infant formula vs breatfeeding, and tend to keep their children on formula for longer. They often continue on formula into primary years, as it is perceived to be safer than the local milk.

Ok, A2M has about 6-7% market share (and growing), and lets say 60% of babies go onto formula for 3 years. At $35 AUD per tin, that is lifetime revenue of 0.06 x 0.6 x $35 AUD x 18 (cans per annum) x 3 years = $68 per chinese baby per year goes to A2 M, or $1.22 Billion per annum. This is the ARR of A2M, and it is grown rapidly.

There are 3 ways chinese families can get hold of A2M. Option one is buying at their local store, Option 2 is buying online via a chinese website, and option 3 is buying online, direct from australia, via Daigous (chinese buying agents). Buying direct from Australia is cheaper (A2M have structured their pricing this way to protect Daigous, a vital source of sales to the business). This means, the chinese consumers first preference is to buy direct. This in turn means that Daigou sales are a leading indicator of trouble ahead for A2M. Daigous buy their stock from Australian Supermarkets. Walk into a an Australian supermarket at any time, and you generally find A2M formula out of stock - this is the norm. Daigous work co-oroperatively, and use Wechat to alert fellow Daigous when A2M formula is in stock. Daigous clear the shelves within 48 hours. This is despite a can limit of 2 per customer. What this means is that investors with a keen eye, and a network of other investors will be able to spot signs of the Daigous channel stopping, well before analysts receive data, or begin drafting up a report. This advantage gives me a high confidence in holding the stock, as I can monitor Chinese consumption through my network.

A2M also has great optonality with the US and Uk markets in the very early phase of growth. A2M simply cannot introduce infant formula into these markets yet because they do not have enough production at the moment.

Onto STNE. I hear the Brazil market is competitiive, but you look at what businesses are being charged, and for such poor service, I would beg to differ. I belive STNE’s hub model is creating a powerful moat, and is a model that is uniquely Brazilian (it would not work in the US or Aus). STNE is well managed, and is in the very early phase of developing, and growing their small business software platform. There is a not insignificant risk in relation to the currency, and the economy, but I think the current share price provides an asymmetric risk/reward equation. Time will tell whether I am right on this call. It is a heavily shorted stock, and we will know within 3 months whether the shorters , or I am right. The best thing about this investment for me personaly, is I know I will learn greatly from this investment, and I think that is a great long term investing strategy.

Rich, I would love to know some of your other ideas.

Best, Sean



Each country has its strengths and weaknesses. Australia has two:

  1. New Zealand - A truly innovative country, punching well above it weight. A lot a Australian success stories originated in NZ. I wathc New Zealand companies closely.
  2. Technology niches - With the exception of say TEAM, XRO, & APT, Australia tends to innovate in small niches that are overlooked by bigger tech companies due to the limited TAM. This is where I am focusing my attention locally, on these interesting little niches. I think I can achieve Saul like returns in this area, which is a strength of the Australian tech sector.

Perhaps Canada has similar niches you can focus on?



Hi all,

I thought I would follow up on a recent decision. I sold out of Knosys(KNO), following a review of its competition, and a comparison of its product agianst the competitors, such as Zendesk.

I concluded the Knosys product is inferior, and more expensive. I also concluded that Zendesk is expending far more resources in Australia on Sales and Marketing, and is growing market share at a higher rate than Knosys.

Knosys may continue to grow strongly off its current low base, but in the long term, I think the execution risk is high, and chances of success relatively low.


A2 Milk – A2M (ASX) – (4.1%, down from 4.3%)
• A2 the only A2 only protein milk producer.
• Capital light model – A2M outsources production.
• High margin for “premium” milk product.
• High growth in china, US, and UK. Currently 40%+ revenue growth. 50% in China and US.
• Great optionality, with infant formula yet to be released in US and UK markets. Huge growth runway.
• Watch for branding – vulnerable to customer whims, and reputational damage.
• China announced regulatory changes that may impact Daigou channel. Economic risks could greatly impact A2M. Monitor Daigou channel, and sell on signs of channel stuffing.

A blog post published today is a must read for us A2 Milk investors :


"A new paper relating to A2 milk has been published this month in the Journal of Pediatric Gastroenterology and Nutrition (JPGN). The paper provides strong evidence from a clinical trial with pre-school children in China that A1 beta-casein relative to A2 beta-casein has negative effects on both digestion and cognitive performance.

The evidence is sufficiently strong that those who have argued until now that A2 milk is just a marketing gimmick will find it increasingly difficult to sustain that argument. This has major implications for the mainstream dairy industry which continues to downplay the A1 versus A2 issue." :…

1 Like

A blog post published today is a must read for us A2 Milk investors

What companies are producing A2 milk. Who are these these
A2 investors and what are they buying?

Sorry I missed reading whole thread…early morning and lack of coffee.

Probably didn’t have an A2 in it:-))