ATM - A2 Milk Corporation Limited

**kizame** · 23-02-2016, 06:13 AM

Originally Posted by Ginger_steps_

Its very popular in aus at the moment, sentiment is strong and they have released 3 substantial profit upgrades in 4 months, with another likely to come soon. Add in instos, I think this stock has got plenty of volatility ahead over the next 3 months, with a bias to the upside! IMO if a2 continue on this trajectory for the next 12 months we could see it trading at a PE of 60-80 (not Snoopy's PE!!), such as many other growth companies on the ASX.

On another note - I have moved from my little hick town to Coffs Harbour. I was in Coles today and noticed a2 400g tins of a2 platinum (usually 900g), sold at a price premium of course. They are the only brand from what I can see who have these small tins - their profit margins are being fed meat pies hourly!

Ginger steps, say they do 20m net profit,I work that out as .028 cents per share,putting them on a pe for the year of 65.
You must be looking a year or so ahead with your PEs?

**Ginger_steps_** · 23-02-2016, 11:51 PM

Originally Posted by kizame

Ginger steps, say they do 20m net profit,I work that out as .028 cents per share,putting them on a pe for the year of 65.
You must be looking a year or so ahead with your PEs?

Yep sorry that wasn't too clear. I thinks its safe to assume that with formula supply increasing monthly, direct sales increasing heavily, and UK reaching breakeven - they will smash forecasts and fetch a NPAT in the high twenties. Hence why I think we will see a further profit upgrade in the next couple of moths. Also Interesting to hear a2 discussing the possibility for dividends in the not too distant future.

**silu** · 01-03-2016, 09:54 AM

Bloomberg writes about A2 milk
http://www.bloomberg.com/news/articl...he-dairy-world

**Golfer01** · 01-03-2016, 10:15 AM

Originally Posted by silu

Bloomberg writes about A2 milk
http://www.bloomberg.com/news/articl...he-dairy-world

Great article. Might see some US investors buying in. A bit disappointing though, I thought A2 was a NZ based company! Once they get on top of their supply they'll be exporting the infant formula to USA.

**dobby41** · 01-03-2016, 11:07 AM

Originally Posted by Golfer01

A bit disappointing though, I thought A2 was a NZ based company!

They are - those Aussies will steal anything successful.

**stoploss** · 01-03-2016, 11:45 AM

This is what Bloomberg have to say in reply ....

Hi thanks for your feedback. ATM certainly got its start in New Zealand and retains an office in Auckland but all its key management are in the Sydney headquarters now, including MD Geoff Babidge. Australia is also, by far, its main milk market. The story details how ATM was started by two Kiwis and how it is also listed on the NZX.

**Trigger** · 01-03-2016, 12:25 PM

Pavlova, Pharlap, Crowded House, ATM...what next?

**stoploss** · 01-03-2016, 12:34 PM

Originally Posted by Trigger

Pavlova, Pharlap, Crowded House, ATM...what next?

I wouldn't describe Nestle as anything but a Swiss giant ....suppose it's headquarters is in Switzerland , but they for sure sell most of their products in the Americas .....