Nothing till 60 :eek2:
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Nothing till 60 :eek2:
Fantastic, huh? The train is leaving the station, there may just be enough time to jump aboard if you haven't already!
Focussing on the sales growth of a2, I believe that the infant formula will become massive in Asia (to be launched in May/June). From the research I've done, many Chinese mothers will ONLY buy infant powder from New Zealand as it is seen as pure and trusted (although this has been somewhat tainted over recent scandals). The Chinese also love to purchase anything that claims to be a health product or natural remedy (i.e. a2 Milk). Chinese mothers will want only the best for their babies. This means a2 infant formula will have a massive selling point/point of difference over the current "best" infant formula (formula from NZ) and will most definitely appeal to their target market.
The chinese infant formula market is worth around US$6 billion per year, with an impressive 12% growth p.a. If a2 can capture even 1% of this market, that's US$60 million in sales per year. Capture 10% and that's US$600 million in sales per year.
Some interestingly big parcels changing hands in the last hour !
10.5M now... Will be interesting to see who it is. Would be a good sign if Milford is accumulating even more.
How much to punt in this one?
I've been patiently waiting for this. Should give the SP another boost.
On another note, I'm pretty impressed with the a2 marketing campaign in the UK. After bit of an issue, they have launched their "Try a2 milk for free" campaign. Anyone in the UK can sign up on Facebook for a voucher to get free a2 Milk at their local supermarket. They are certainly spending some coin on the campaign, which is very nice to see (money well spent in my eyes). IIRC, their Facebook likes have gone up a few thousand in the last week or so.
https://www.facebook.com/a2MilkUK?fref=ts
Thanks sparky. Great advise.
Punt nothing. Do your homework and invest wisely.[/QUOTE]
People stacked up at 55 and 56 are starting to up their price. 273k buy shares at 57 now. Should easily get to 58 today.
Waikato is one producer also the BOP its possible to run a 50% mixture on any farm thou farmers know there cattle that produce that protein etc http://www.stuff.co.nz/business/farm...hore-expansion
I've been trying to estimate what a "fair" SP should be, but am having some difficulty. Just wondering if anyone could add their two cents (Sparky?).
Looking at a couple of fundamentals:
Price/Sales ratio = 3.7 (based on a projected estimate of $100m full year sales)
PE ratio = 187
In my view, the P/S ratio is quite small for such a high growth company like ATM. Compare this to DIL and XRO, who have P/S of ~10 and ~20 (although this may be somewhat chalk and cheese). Could the low P/S ratio be attributed to the fact that the margins are likely to be much smaller? On the other hand, the PE ratio is extremely high. However, this is justified by their expenditure into growing the business very quickly. The fact that it is positive is always a good sign.
Would drought have any effect on their earnings?