ATM - A2 Milk Corporation Limited

[kiora]

im no investment advisor , but my thinking for me was i had all this equity in the house which wasnt earning anything so as long as a wasnt silly in how much i borrowed at 5% (cheaper than a margin loan) and i invested in good div shares they would pay off my loan over time and i might make some growth as well. i started doing this in 2008 by the way i wouldnt do it now as the market has run a long way since then. i might do it again after the next crash though.

Like Bull I wouldn't be worried about borrowing against the house as long as the cash flow of all the investments can be easily managed.My view is an investor learns most about investing by just doing it & I wouldn't be worried about the next crash.By investing in the here & now,you can learn the smarts to be better positioned with 'knowledge' for the next bull market.Is Buffet worried about the next crash?NO.Why?He invests in good companies and doesn't get concerned about the daily noise of share price movements.

[gbogo]

Adam is asking about selling ATM though.. paying down a mortgage or investing is not the question.. he's already made that choice and now he has to move the invested money back to the mortgage. so anyone else got advice on how to sell ATM? picking a number you like doesn't seem that helpful - I could pick $150.. i love that number - but there's very little chance ATM gets there in the next 6 months, I think!

[sb9]

On the back strong reporting from Bellamy's across the ditch , I'm picking ATM could surge past $13 mark today if shorts are in a hurry to cover.

[minimoke]

Hi guys,

I've been following this thread (along with the others that are relevant to my portfolio) for a long time now but I don't post because I feel like an idiot, so please be nice.

Dont worry about that. I am content taking that role - frees everyone else up to post and learn what ever they like

I'm interested in people's opinions on where ATM is headed in the short term, although I guess the definition of "short term" depends on your trading horizon but I need to pick an exit in the next little while.

Following ATM is like being on a roller coaster. If you are a trader then money to be made short term. I'm not - I'm taking a long term view. That is five years. Happy with the ride . But I would be very nervous if I know I had to exit by a certain date. I'd sooner exit on my own terms.

I am an investor with a modest holding of ATM, which because of its recent success makes up nearly half my portfolio. I got in early (53c) and got a few more at $2.10 so have done really nicely and would love to hold on tight and continue to ride it north, however I am building a house and want to knock as much off the mortgage as I can (I know in the long run I will make more out of ATM than I will pay in interest but really need to keep the mortgage small in order to service it).

I'd be inclined to keep riding the highs on the way up. Come up with a number off this high and that's when you sell. Be content with your gain but don't get greedy.

So long story short - I will be selling down my entire portfolio over the next six months, herein lies the question. Am I going to be better off holding on as long as I can and hope that on the day/week/month I need the money the price is better than it is today, or do I pick a good number (and I don't know what a good number looks like at the moment) and jump ship when that happens?

I understand the basics of how fundamental and technical analysis works and seem to be doing okay despite the fact I am not an expert in either and don't use either to their potential.

What are your thoughts?

Cheers,
Adam

Long term I see ATM doing better than 5% per annum (or the prevailing mortgage interest rate. Especially when dividend kicks in. So the question is how best to utilise your capital

[RGR367]

Adam is asking about selling ATM though.. paying down a mortgage or investing is not the question.. he's already made that choice and now he has to move the invested money back to the mortgage. so anyone else got advice on how to sell ATM? picking a number you like doesn't seem that helpful - I could pick $150.. i love that number - but there's very little chance ATM gets there in the next 6 months, I think!

If your ATM price is $150 within 6 months then you're not selling it but daydreaming about it and the Market will not act in your play

[Dust]

Alternative to reverse mortgage borrowing would just be getting a broker that offers margin lending or consider CFD derivatives. You can leverage up as much as 8 times with the cost of borrowing smaller than the mortgage rates probably..

[couta1]

If I was you Adam in your situation I would be selling a third of your holding now, wait a week and sell another third, if the price starts dropping then sell the rest.

[bull....]

Adam is asking about selling ATM though.. paying down a mortgage or investing is not the question.. he's already made that choice and now he has to move the invested money back to the mortgage. so anyone else got advice on how to sell ATM? picking a number you like doesn't seem that helpful - I could pick $150.. i love that number - but there's very little chance ATM gets there in the next 6 months, I think!

adam has to decide himself when to sell and live with it for the better or the worse. dont think anyone even including financial advisors could pinpoint the exact time to sell

[Jay]

Yes has to decide for himself.
How about picking a number based somewhere around a recent low - sell if it drops to that price before the funds are needed, if not sell when required.

[Ggcc]

If I was you Adam in your situation I would be selling a third of your holding now, wait a week and sell another third, if the price starts dropping then sell the rest.

I would follow in similar steps. Whether it goes up or down you need to be content with your profits.

Many times you hear “had I just waited”, or “damn I should have acted sooner”. I can tell you I never get it right when it comes to selling. It always does the opposite to what I want haha