The A2 Milk Company Ltd (ASX: A2M) share price suffered another blow as it fell after comments made by former CEO, Jayne Hrdlicka. What is all the fuss about and how will this affect a2 Milk?
The a2 Milk share price has declined by more than 50% over the last six months and the Australian Financial Review article on Jayne Hrdlicka’s comments about the a2 Milk chairman likely pushed the share price down further.
A2M share price
Negative publicity
According to the AFR, Jayne Hrdlicka allegedly accused a2 Milk’s chairman, David Hearn of sending an email of confidential and private correspondence to the media to “inflict maximum” personal damage upon her.
The AFR wrote that this alleged act by David Hearn was brought about by his feelings that Jayne Hrdlicka was disparaging the company through her comments in a story about her departure in December 2019.
It is difficult if not impossible to determine who is telling the truth, so I would rather spend time focusing on the fundamentals of the business.
A2 Milk – the business
The a2 Milk business is facing an uphill battle mainly due to the border lockdowns adversely impacting its supply channels to China. However, it is experiencing strong growth in the US.
Readers should check out Rask Media’s Lachlan Burr-Jensen’s comprehensive analysis of a2 Milk as he provides his bull case and bear case:
The bull case for A2 Milk Company Ltd (ASX:A2M) shares
The bear case for the A2 Milk (ASX:A2M) share price
If you are interested in other ASX growth shares, I suggest getting a free Rask account and accessing our full stock reports. Click the link below to join for free and access our analyst reports.