ATM - A2 Milk Corporation Limited

[airedale]

Just looking for reasons to explain the SP, perhaps that board member who was on the Coca-Cola board?? Maybe it is the "next thing". How is that for a bit of hot copper style ramping?
Discl: still holding most of mine.

[silverblizzard888]

Just looking for reasons to explain the SP, perhaps that board member who was on the Coca-Cola board?? Maybe it is the "next thing". How is that for a bit of hot copper style ramping?
Discl: still holding most of mine.

Proven company, proven product and management that seems quite competent in their strategy and belief.

Its as simple as 10 times revenue. Current 150 million revenue = 1.5 billion market cap, but soon to be 300 million = 3 billion market cap
The closer we get to June the more it will continue to go up.

[skid]

Proven company, proven product and management that seems quite competent in their strategy and belief.

Its as simple as 10 times revenue. Current 150 million revenue = 1.5 billion market cap, but soon to be 300 million = 3 billion market cap
The closer we get to June the more it will continue to go up.

Until now? Is the stampede doing a turnaround?--Its been a dream run but this may be the time to consider some profit taking.
In my opinion we are out of the domain of fundamentals and into market sentiment(the psychology of investor behavior) DYOR

[silverblizzard888]

If you look until the 18 Dec announcement the market was not so bullish, but once the new upgrade came in it reaffirmed that previous guidance was conservative and that the company was going to achieve an extraordinary growth in revenues. The valuation is that it will revert to a growth company now, while in the past growth was growing at a steady pace and profits and cash flow seemed more relevant. Taking some profits is always a wise move because markets are unpredictable to anyone and judging by the price fluctuations today there seems to be a lot of profit takers. Based on what I've seen in companies and my study into valuations my projection is this company can enter a 3 billion valuation next year as long as they execute once the June financial year ends.

[Leftfield]

Been a great run so I sold 10k at 2.47 today. Balance well and truly FREE for a long term hold as I'm living testimony to how ATM can benefit an irritable digestive system (as well as keeping my wallet v happy!)

[Joshuatree]

Great timing there LF ,$2.06 finish. Spruikometer tells us top stock A2M 700 posts followed by AHF Australian dairy 317.Next closest BUD 123.

[okay]

With the introduction of Platinum baby formula to A2's stable clearly being an outstanding success, would it not make sense to capitalise on this momentum and follow Bellamy's lead and introduce follow up A2 baby food products?

With the extra cash these products will generate at good margins they can have a real good crack at the US and UK.

[janner]

Now I am not saying that ATM is not a good company..

However..

Massive daily increases in just a few chosen companies reminds me of1987..

Be careful out there !!!..

[Ginger_steps_]

With the introduction of Platinum baby formula to A2's stable clearly being an outstanding success, would it not make sense to capitalise on this momentum and follow Bellamy's lead and introduce follow up A2 baby food products?

With the extra cash these products will generate at good margins they can have a real good crack at the US and UK.

have a look at your nearest supermarket shelf (if in aussie) - they have 3 formula products.

[Ginger_steps_]

That’s mighty generous of you Sir, regardless of that or not when this stock hits above $3.50 next year I think I'll personally just be happy for you full-stop.

For now it should consolidate within the $2 range and start pacing up as we get closer to June (financial year unless prior announcements), unless this market becomes very bullish and realises it quicker. Regarding the next few years I think they have great potential, but I never trouble myself to predict that far.


I think Hotcopper has a mixed number, some who do understand it but no longer talk about it as much and those traders who are new to the stock and feel it’s a industry boom again rather than a unique moat by the company. All people understand is that baby formula is big and that if it sells formula, then that’s the formula for success.
The unique moat around A2 milk is that it locks customers in through the better product approach both psychologically in the mind that drinking A1 would be damaging to your body after what you know of A2 and physically that this milk actually works, except they just need better science results to further prove it.

Even this video: https://www.youtube.com/watch?v=Z_T_OBGf3QE
Explains simply how it works and why it works, if they can educate consumers then its going to gain a lot of traction in the US.

I don't think many people are being flexible about their approach especially those who have only seen this stock move like a snail year after year and have the mentality this is a temporary rise. Yes it’s a shock to the system that all of a sudden this stock has gathered pace, but with that comes more awareness of what this stock truly is. Its earning between 10-15% margins in cash flow from revenue, given the rate this business grows thats big stuff and can match the tech firms out there.

How many stocks have you seen grow their revenue 100% especially at this size? That growth is more than Xero, but unlike Xero they are profitable and their retention rate will be a lot higher.

Thanks for your input Silver - I hadn't seen that video yet. The burning question I have is - will you be buying?!
Lets hope a2 were being conservative with their last profit upgrade. Furthermore, lets keep an eye on China, in 9 months there will more likely than not be a flood of new babies - if a2's milk supply is increased....... In the words of Will Smith "tick tick tick tick BOOOM!!"