ATM - A2 Milk Corporation Limited

[Ggcc]

Article about A2M ATM behind a paywall on the NZ Herald site but you can read all of it here Basically a summary of what has happened with some opinions on what the future might hold. An interesting read.

Disc: holding

I keep winning a phone with this link Lol. I just can’t read the article

[777]

I keep winning a phone with this link Lol. I just can’t read the article

Works for me. Try a different browser.

[Balance]

Hard to believe share price is in the 7’s

Providing the opportunity to short for the negative view holders.

[sb9]

Article about A2M ATM behind a paywall on the NZ Herald site but you can read all of it here Basically a summary of what has happened with some opinions on what the future might hold. An interesting read.

Disc: holding

Nice one Hoop, very well articulated summary. I'm sure DB would lay a clearer long term pathway than that of his predecessors.

[sb9]

Providing the opportunity to short for the negative view holders.

Or perhaps, bigger gain for glass half full believers. Pick your side...

[mike2020]

Hard to believe share price is in the 7’s

It does seem overvalued. I didn't see any positives in that article, no growth, more expenditure, competition and lower margins and less Chinese babies. Was there not a resounding boo hiss when it was suggested more be spent on marketing? And how much of that cash everyone dreamed of seeing in a divi is still to be had? Do the math people.

[JohnnyTheHorse]

Battle between the bulls and the bears playing out the last few days. Things tightening up with a nice equilibrium forming on the 4h chart. We will either get a bull break of AU$7.07 and we are looking for potentially just a daily lower high, otherwise continuation of weekly uptrend. Or we get a bear break of AU6.77 on higher volume confirming the start of weekly consolidation and we start looking for that weekly higher low.

[mike2020]

You may as well be trading bitcoin.

[Arbroath]

You may as well be trading bitcoin.

I hope you don't give investment advice. A2 not without risk but has no debt and c. $500m of cash after the MVM purchase.
Imagine if the sky doesn't fall in like so many on this thread seem to want, and also imagine where the world will likely be in 18-24 months when the populations are mainly vaccinated (at least those that want to be).

[Hoop]

Hard to believe share price is in the 7’s

Yeah..Its mind-blowing looking at this debt free company and noticing in hindsight how much expected future growth was factored into it's share price..

Hmmm.The question to be asked is..."is there still some residual growth factoring to be shaken out of the current price?"

Speaking about PE and Forward PE and how the future expected rate of growth effects PE...the other thing (not mentioned) is the inflation effect..Inflation is the primary driver in Share market Theory..So, in theory this could be another headwind for ATM (A2M) as for most equities... Inflation inversely correlates with the PE Ratio.. Higher inflation lowers the PE value .. as well as expected inflation lowers Forward PE..
So could we see ATM's price become under more pressure if rising inflation becomes persistent?...Will ATM rising rate of growth return?..If so will the share price be muted if inflation rises as well ?

Happily there is no Market evidence of an expected no growth or negative rate of growth + inflation scenario

Thoughts??