A couple more similar dips and we might see that $3.50 range tested as several participants oaths thread have been advocating for some time. Yikes, must have nerves of steal for those to still be holding at this point.
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Balance, looks like you and I are both "ex-holders who did well". I'm interested in the $2.50 buy comment because I had a similar idea and then thought maybe even such a very low price is still a risky price. I need to do more research - but it is possible that this company could go under?
It is sitting still on over $500m cash, has no debt and is profitable.
I do not see it going under but I do see its profitability continuing to come under pressure from markets dynamics (declining birthrate in its biggest markets, increased competition and higher costs).
Back of envelope calculations done by Beagle and I last year assessed ATM to be worth $2.75 and we were laughed at. It’s not that far off!
So $2.50 will be a good price and a good level for a takeover play.
Balance, thanks. I'll check those; pretty sure I had similar when I did it a while back. Book value will be hit at a certain point with cashflow & profit protecting it. BUT, there's something - negative - that I can't quite put my finger on about this company now and I'm not having much luck bringing it to the surface. Something is off.
Baby formula production halted at Abbott's Michigan plant due to flooding after severe storms
https://www.foxbusiness.com/lifestyl...n-plant-storms
Bubs Aus (BUB) has upgraded their earnings today on back of strong China demand, bodes well for the sector.
The unemployment rate for age 16-24 Chinese is 18.4% in April. No job no babies......
Chinese are not stupid...not like young kiwis...keep popping babies without future plans.
Chinese plan thier future, especially with family n kids...big decision...most of them want the best for thier kids.
Not like kiwis...just pop the babies...worry about it later...no money..no problems...stay home...claim government...claim everything..keep breeding