a2 just about the worst performing stock last mth down 13%
With your continued daily trolling comments it's no wonder a lot of people can't be bothered posting anymore, near the end of my ski holiday now but I feel another forum holiday coming up, I'm going to have to get my wife to change my password again.Lol
You only have to reference to latest Investor Presentation provide by the company at time FY results to figure out that question if its still a growth company or not.
Peter Nathan has time and again in many post results interview suggested what they haven't even scratched the potential that lies ahead in China and their investment into more MBS channel. And this also to tackle the disappearance of the retail daigou and they have what he calls multi channel offering into that market to meet demand.
Investment into new plant of Mataura Valley Milk is another example of what kind of growth they're envisaging in years to come and also to diversify reliance single operation in current Synlait.
Continuous growing market share in Aus fresh milk market.
And lastly, US operations going strong as evidenced by reported numbers in FY report with growing awareness and recent venture into Canada.
I'm probably very biased as holder from 58c days but the fact that I still hold more than 90% of my holdings is a testimony to what I believe is there's still massive growth and potential that lies ahead for this company.
Originally Posted by winner69
There is such a thing as 'growth rate decay'. As guru Moosie alluded the bigger a company becomes the harder (impossible) to maintain historical growth rates.
Yes growth is slowing....but still growing. Don't think anyway is arguing otherwise.
A2 is moving from a very high growth company to just a high growth company and one day to just a growth company. A combination of growing size and to some extent a sign of becoming a 'mature blue chip' (think that is what you said)
No doubt your question was a hint that A2 is over priced and will struggle to see a shareprice of say $25.
Maybe A2 is becoming a bit like FPH with consistently good solid earnings growth with exceptional returns on capital. Those are the sort of companies that market rewards with high valuations.
Yes, A2 growth is slowing but still a high growth company....and the share price will continue to prosper
Only concern is that with this strategic move into investing in factories that one day they might own these capital intensive outfits and become bloated and end up like another Fonterra .... hopefully that won't happen but if it does happen there will be early warning bells
Well said folks. Thank you...... and I hope that answers Beagle's call for 'debate' on the growth of ATM. Time to move on IMHO.
Of course growth with slow from the early incredible numbers. An interesting figure in the latest results, their Australian fresh milk sales grew at 14.1%. This is faster growth than recent years, in their most mature market. Incredible result. I would be very surprised if the next few years EPS growth only just match the current growth of their most mature market.
Fully agree not to overextend into a moderately risky company, especially if China gets any more difficult to deal with. But as a little chunk of my portfolio, I'm very happy to stay invested.
im having intellectual discussions about why a2 not so hot know for various reasons.
did you know when they become more manufacturing based we will have to value them on a lower pe because that the way it is
Excellent! I'm glad we all now know and thanks so much for the enlightenment. You can now move on and provide your deep wisdom to holders of some other stocks.
Excellent! I'm glad we all now know and thanks so much for the enlightenment. You can now move on and provide your deep wisdom to holders of some other stocks.
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Originally Posted by bull....
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