ATM - A2 Milk Corporation Limited

[glasszon]

You originally weren't sure whether to hold or to sell. After some comments by anonymous posters, some of whom are likely biased in favour of this company, you think you might buy? It's a good idea to have a strategy before you buy any share, depending on what your goals and temperament are. Never a good idea to make up strategy on the fly in response to share movements or other peoples comments, you will naturally let your emotions make your decisions and it will cost you money.

Don't worry, I am not making a decision in one day, I am looking to do more research before making a decision. It is very difficult to value ATM properly, so either way there will be some judgements involved.

In hindsight it is probably a mistake to buy into ATM when there are many companies at historic lows and are much easier to put a value on.

[Gregnz]

I have been flipping back and forth if I should buy today or also wait, i am tossing up with at least waiting until after the US election.

What impact are you expecting the USA election to have? It’s a given that either Trump or Biden will win. It’s only uncertainty in the financial markets which is driving volatility.
The fact that US futures are heading back in the green with what appears to be a potential Biden landslide would suggest to me that the financial markets were not as dependent on a Trump victory as we perhaps thought.

[Gunner]

Don't worry, I am not making a decision in one day, I am looking to do more research before making a decision. It is very difficult to value ATM properly, so either way there will be some judgements involved.

In hindsight it is probably a mistake to buy into ATM when there are many companies at historic lows and are much easier to put a value on.

Out of interest what are the stocks at historic lows you are referring to?

[macduffy]

In hindsight it is probably a mistake to buy into ATM when there are many companies at historic lows and are much easier to put a value on.

I'd suggest that any company trading at an historic low in this market has a good reason for doing so!

[glasszon]

Out of interest what are the stocks at historic lows you are referring to?

They are mostly oil and gas company, REIT or banks listed on ASX but some of the banks are dual listed on NZX too. An example would be WPL

I'd suggest that any company trading at an historic low in this market has a good reason for doing so!

For travel industries, absolutely, but I think the drop in REIT is overdone in Australia: Melbourne has just lifted the lockdown and with covid getting under control in Australia, the retail industry should really benefit.

[Biscuit]

Don't worry, I am not making a decision in one day, I am looking to do more research before making a decision. It is very difficult to value ATM properly, so either way there will be some judgements involved.

In hindsight it is probably a mistake to buy into ATM when there are many companies at historic lows and are much easier to put a value on.

I'm not sure there are many companies at historic lows, most NZX companies seem to be on fairly high PEs these days. ATM's phenomenal growth rate is slowing, maybe quite a lot. But it's still a good growth company and I am happy to add while there is price weakness.

[RGR367]

.................... It is very difficult to value ATM properly, so either way there will be some judgements involved.

In hindsight it is probably a mistake to buy into ATM when there are many companies at historic lows and are much easier to put a value on.

For your peace of mind, we were buying/valuing ATM in 2015 at around the 50 cents and we're still buying it now at 1420. So what can you learn from that?

And Hee Hah! MET is paid so I got another 6 digit amount to spend more on ATM if and when it falls below my 1420 top up earlier

[couta1]

You originally weren't sure whether to hold or to sell. After some comments by anonymous posters, some of whom are likely biased in favour of this company, you think you might buy? It's a good idea to have a strategy before you buy any share, depending on what your goals and temperament are. Never a good idea to make up strategy on the fly in response to share movements or other peoples comments, you will naturally let your emotions make your decisions and it will cost you money.

Always a good idea to take notice of those who are willing to share real experience with having made mistakes in the past, if in doubt do nothing.

[clearasmud]

I bought before ATM announced its issues with sales relating to the Melbourne lockdown and Australian export to China is having a hard time at the moment. So now I am thinking whether it's better to deploy the capital to companies with turnaround potential (such as WBC, there's no way the Australian government can let one of the big 4 bank fail and it is trading at ten year low) rather than holding onto ATM when it isn't clear where the bottom is, given the PE of ATM is still very high.

Lets face it Banks are on the back foot with all the challenges they are facing eg 0 rates, rise of digital currencies etc but ATM is a genuine growth Co, not without volitility and risk of course.

[couta1]

I'm not sure there are many companies at historic lows, most NZX companies seem to be on fairly high PEs these days. ATM's phenomenal growth rate is slowing, maybe quite a lot. But it's still a good growth company and I am happy to add while there is price weakness.

Your right, i don't see much value elsewhere on the NZX currently, this stock stands out like pee stains in the snow.