So did I. It would be interesting to see someone who is thinking about worst utilisation of their investable funds and its future decline.
As for the WHS it was at $3 just over a year ago.
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Looks like the aussies pushed it off a small cliff today, down over 3% while the NZX listing is only down just over 2% (a fair difference)... although I'm somewhat surprised the share price is still over $10 (NZ listing), but as I've mentioned before, sometimes the fundamentals don't matter, just as long as the story feels good... and ATM still has a pretty good 'feel good' story around it.
Latest broker to downgrade A2M :
"Also weighing on its shares has been a recent broker note out of Ord Minnett.
According to the note, the broker has retained its lighten rating and lowered its price target on the company’s shares to $9.90.
It reduced its price target and lowering its earnings estimates to reflect the tough trading conditions it is facing.
One possible positive, though, is that the company is sitting on a sizeable cash balance. With its share price trading close to a 52-week low, the broker has suggested that capital management initiatives could be considered."
From a couple of posters on HC;
"...i read the same thing on Motley about Ord which is strange because Ord Minnet have been buying the stock as indicated by the broker data i have up till the 6th..."Well thats their standard tactic, accumulate whilst downgrading, such an honest transparent lot...."
"...Taxed said: ↑
Is it not the case that the brokers are simply buying on behalf of their clients, ie executing their clients instructions? So Ord Minnett et al can quite legitimately lower their price target whilst appearing to 'accumulate' the shares. It just tells me that clients are discounting their brokerage's advice and buying big at these levels.
BTW, I see that Forsyth Barr's latest research note* from 21 Dec has a revised target of $15.50 and retains their 'Outperform' rating. Just sayin'...
[* The FB research note also comments: The company does have a large cash balance which provides the option to help market confidence with a share buyback — this is “being considered”.]
I've seen a few share buy-backs and don't remember any of them having much of a positive effect. I would be surprised if ATM did a share buy-back to be honest and they can hardly be taken seriously suggesting the market has mis-priced the company given they seem to have so little handle on their own revenue.
The effect of a share buy-back often takes a while to be apparent in the SP - sometimes it just doesn't - but sharing profits among a smaller number of shares is still beneficial!
If they do a buy back might be one of those where every shareholder participates
That’s a share cancellation.
Personally I think any kind of buyback or payment of dividend will not be a good move - distracts from the ‘growth’ story. Could lead to a PE contraction.
Tough it out - fundamentals will ultimately prevail if the management and directors believe that the reduction in earnings growth is short term, let the market do what the market does.
Plus, a lower sp will give management & directors a lower entry point for their options or better still, for them to buy heaps of ‘cheap’ shares.
Interesting viewpoint from HC, as others have pointed out, any such news would see short positions basically incinerated.
"Contrarian view, but my belief is CAHG is gearing up to purchase a stake in a2(10-15%). Very similar to when Coca Cola purchased a stake in MNST. The fact a2 bought 75% of MVM even more so validates the rationale, along with the large push into MBS stores by which WE both benefit. Management will be privy to this information which is why a buyback or insider buying hasn't occurred. This has the potential to create an almighty short squeeze(APT/Tencent)."
Pardon my ignorance but who is CAHG?
BTW, you have not replied to how posters in HC are able to identify Ord Minnett as the huge buyer of millions of shares - genuinely interested to know as I have not been able to obtain said information from my broking sources since trades and depth were made incognito years ago.