ATM $110,000 ps:t_up: on ASB site
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ATM $110,000 ps:t_up: on ASB site
What on earth is wrong with ASB??
Seems to be on all shares. So not only are NZX systems crap so are ASBs.
Do we live in a third world country?
Maybe thats ASB securities way of compensating ATM holders for management debacle precipitated by Covid .... Xmas magic :D
My take on it. What if it goes down to $6 ? Don't know about others, (that's their own business with their partner if its joint money), but my approach is when I am investing joint matrimonial property finances I am forever mindful that I have very strong fiduciary obligations to act in my wife's best interests at all times and not expose her to undue risk or financial danger. Nothing about the future growth rate of ATM is certain and they remain on a very high forward PE for a company that faces considerable current headwinds that may prove to be enduring.
Short term levels to watch on downside ...10.90 to 11.20 current , 10.40-10.55 next downside support , 9.80 to 10 solid support !!
I just listened to the conference call from the other day.
Certainly, as is to be expected, a lot of attempted butt-covering going on by the board and management
"we did caveat our forecasts when we made them" etc etc
Putting that aside though, IMO the analyst from Bank of America asked the most pertinent question of Jeff B (around the 22 minute mark)
The question was along the lines of
"how can we be sure that the information systems that ATM has in place are appropriate and timely given that we analysts, and ATM itself, have now been blindsided with two sudden and unexpected profit downgrades in the space of just a couple of months"
Babbage's reply was along the lines of
"yes, we believe that our information systems are timely and appropriate, if we had known any extra information at the time of our AGM (which was late November) we would have revised our guidance then"
After a bit more butt-covering he went on to state
"I am looking at the finalised sales numbers to the end of November (ie as at the time of this conference call) and I can tell you they are not materially different to what we were forecasting when we issued our guidance and I can categorically tell you that EBITDA numbers are not below what we were forecasting. December was always going to be a big month and it became clear last week that December wouldn't meet expectations"
So, it would appear, to me at least, that to go from a first half revenue projection of 725-775m down to $670m given that everything was rosy up until the end of November must mean that December sales have absolutely collapsed (or is there another way to look at this)
I personally think that these people are engaging in magical thinking, and just continually pushing out the miracle recovery that is just on the horizon - "didn't happen in December, not to worry, we will just assume it will happen in the second half year"
Be very afraid people
Discl - out yesterday