ATM - A2 Milk Corporation Limited

[Gregnz]

When it comes to P/E , there are many companies which appear to be attractive to investors, yet A2 seems far more attractive from a P/E perspective. I’m thinking AfterPay, Xero, Apple etc.
I don’t think you can necessarily expect the initial high growth rates of a company to continue year on year as your growing from a much higher revenue baseline. Ie when your revenue is $500 million, 30% growth could be reasonable. But is 30% growth reasonable when your revenue is $1.5 billion, $2 billion, $3 billion? I’m not sure, just doesn’t seem a reasonable expectation.

[Scrunch]

I'm actually very calm after having sold a good bunch this morning and have now just completed buying more back.PS-Lets go revisit that wage subsidy off market thread to see Beagles definition of calm reasoned debate.

While Couta1's strategy is being labeled as 90% exposure to one stock, would appear to also be arguably investing 90%+ of time/resources into trading one product. Many FX dealers will focus on a narrow set of currency pairs. Many stock market makers (in countries with market makers) will have a limited set of stocks they make the market for. Many sole traders will invest all their time and resources into the company they are building up. Many property investors will focus only one property type in one area. It can increase the risks, but also the rewards - if done well. Many of the very rich have got there by taking big bets on one company/industry, not a wide mix (but often they are influencing or running those companies). Just some thoughts to also consider for anyone reading.

And I'm not sure on this, but if Couta1 recognised himself that he was trading (not investing) 90% in one stock, that could be a sensible allocation of resources. With where ATM opened on the 18th, and where it had traded by 1pm there was a lot to be made trading. A sell in the morning and a re-buy later is likely to have gained at least 60c and $1/share is entirely possible. Did Couta1 make 1%, 2%, 5% or maybe even more relative to a straight by and hold strategy on that one day? Only he, any accounting support and possibly the tax man will know that. How many times has he made good gains in a similar way - again only he knows. I'd be amazed if the gain relative to a buy and hold that day wasn't a 5-figure sum. A 6-figure gain is within the realms of possibility.

For most people, a high exposure to a single stock is a very bad idea, but it can be the right strategy in certain circumstances.
Disc hold ATM, but only as a modest sub 10% of portfolio holding.

[Justin]

will atm be 2021 institute’s top pick？i wonder.

[alokdhir]

will atm be 2021 institute’s top pick？i wonder.

Normally when its darkest is the time for tide to change ...So to answer your question ...Surely ATM has already become top pick for 2021 . Risk reward favours long term investments . KFL has increased its holding by good 2% in last 3 months which means all NZ oriented Fisher funds would have done the same . They dont invest in penny stocks and need volumes and market cap etc to do big investments , ATM will be surely their top pick as they look ahead to quality stock with prospects of Growth . FPH was traded up to 50 % on that basis early March .

[see weed]

Seems to me the only people nagging about this stock are those who missed big time since it was in 40c range and now trying to convince themselves that they’ve made the right choice by not investing in it

Bought shares with BRM and MLN for 63c and 83c on 13/10/14 and 14/10/14. Closing price for those two shares yesterday was 90c and $1.24c. Bought ATM on 18/11/14 for 60c. Closing price yesterday was $14.54c. I am not an Accountant but just a small time trader. I enjoyed the free lunches BRM and MLN put on at the agms, but prefer the excitement of ATM. I was naughty and was 100% ATM a few months back for a little while. Nothing wrong with being over 90% for a little while .

[DownTownJr]

Bought shares with BRM and MLN for 63c and 83c on 13/10/14 and 14/10/14. Closing price for those two shares yesterday was 90c and $1.24c. Bought ATM on 18/11/14 for 60c. Closing price yesterday was $14.54c. I am not an Accountant but just a small time trader. I enjoyed the free lunches BRM and MLN put on at the agms, but prefer the excitement of ATM. I was naughty and was 100% ATM a few months back for a little while. Nothing wrong with being over 90% for a little while .

Solid work dude. Some good entry points. Yes being 90 percent of even 100 is ok, as for all you know it's only a small value

[see weed]

Solid work dude. Some good entry points. Yes being 90 percent of even 100 is ok, as for all you know it's only a small value

Have locked in 197k profit so far this financial year before fees and losses, steady as she goes for a learner trader.

[Biscuit]

An excellent post and very accurate diagnostic of the situation. I have been trying for years but unfortunately some people are completely incorrigible and incapable of reform. They simply cannot acknowledge they are profoundly addicted to trading and extreme risk taking.

I think, as you say, everyone should find an investment strategy(s) that suits their style and circumstance. if someone is "addicted to trading and extreme risk taking" then they should go with that - after all, that is part of their natural style. That is not intrinsically bad, as long as it is constrained by strategy and discipline. Also, the only statistical certainty is that the more diversified you are the more your return will be pulled to the mean and, as I said, the harder it is to exceptionally lose money and the harder it is to exceptionally make money. Having said that, personally I am extremely diversified - I don't need exceptional return and I have other things to do with my time than constantly think about investment.

[Sideshow Bob]

Have locked in 197k profit so far this financial year before fees and losses, steady as she goes for a learner trader.

Nooice! Beats a real job!!

[Waltzing]

ATM has been exposed to Geo Risk. Investors often trade over 25 year horizon and their large gains on one stock doesnt mean a diversified approach to sector investing wont bring some big gains and rewards at some time in the fullness of time.

Note that when a company gets to this stage in its life cycle it does have farther growth risk but the market brand here is extremely valuable.

If they can keep market share then the 14 range has tested support at least 6 times.

Investors who got in early in this growth stock have been rewarded but its a lottery out there.

With the USA about to shut down again there may be another move down just around the corner.