ATM - A2 Milk Corporation Limited

[Muppett]

And a very good one at that. ATM SP was being suppressed because of the uncertainties around these regulations. That uncertainty is now removed so that risk is removed so its onwards and upwards once again. We can now go back to the detail provided at the AGM which was all good news.

Why is it on wards and upwards? The SP is capped at $12.20 for a long time into the future.
Nothing very revealing in the announcement.

By the end of next week there will be an opportunity to purchase shares at under $10.

[minimoke]

Why is it on wards and upwards? The SP is capped at $12.20 for a long time into the future.

SP currentyl $10.38 so I am more than happy to go onwards and upwards to $12.20. We can agree its not if, but when?

Nothing very revealing in the announcement.

Market seems to think differently (currently up 3.8% for the day.

By the end of next week there will be an opportunity to purchase shares at under $10.

This is what ATM does. As long as the lows get higher and the highs go higher as well, its a roller coaster worth staying on.

[Muppett]

I'd like it to go up, up and up, but don't think it will for awhile yet.

The announcement came out at 3.17pm. SP has been tracking South ever since.

I agree, this is what ATM does.

[minimoke]

I'd like it to go up, up and up, but don't think it will for awhile yet.

The announcement came out at 3.17pm. SP has been tracking South ever since.

I agree, this is what ATM does.

We've known about it since first thing this morning - see earlier posts above in the day.

[Muppett]

We've known about it since first thing this morning - see earlier posts above in the day.

The official company release was at 3.17pm today on the NZX and ANZSecurities website.
GS and ML and other earlier posts from 3rd parties??? One guy even said he couldn't read it all because it was in Chinese.
What does this mean?

[mondograss]

A2 icecream anyone?
https://www.nzherald.co.nz/business/...ectid=12164057

[minimoke]

The official company release was at 3.17pm today on the NZX and ANZSecurities website.
GS and ML and other earlier posts from 3rd parties???

and other "analysts". ATM's is simply another interpretation.

One guy even said he couldn't read it all because it was in Chinese.
What does this mean?

He cant use Google Translate?

[777]

What does this mean?

That ATM and SML are slow in advising the market.

[BlackPeter]

Before we all get too excited (again) - might be worthwhile remembering that the SP is at current still below the MA200, though admittedly - close.

Might be worthwhile to wait whether it manages to take off from the MA200 (and stays above, not just a brief flight finished by a rather unpleasant landing ...) - quite bumpy experience at the moment.

Question is - do we expect hype to take control again? I guess it is possible, but isn't it more likely that people will look into what is sustainable and price the company accordingly assuming a realistic PE and sustainable growth rates?

Fun data: backward PE (2012 - 2018) is 161; PE based on 2018 earnings is 38.5; forward PE (based on 2019 consensus) is 28 and forward PE based on analyst forecasts for the next 3 years is 25;

It is probably debatable, whether the current PE ratios (as above) are "fair", but if people talk about rising SP's, than they seem to think ATM is still too cheap?

What would be an apropriate PE for ATM in a time of PE contraction? And what sustainable growth for say the next 10 years are we assuming to justify this PE?

[Muppett]

He cant use Google Translate?

Brilliant answer.