ATM - A2 Milk Corporation Limited

[Beagle]

http://www.4-traders.com/A2-MILK-COM...022/consensus/

I see average N.Z. analyst expectations of EPS growth and current PE and therefore PEG ratio line up with aforementioned analysis.
PEG of 1 is cheap in my book.

[kizame]

PEG of 1 means it is reasonable value,meaning it is priced right compared to expected growth rate.
Less than 1 and you are getting really good value,the lower the number under 1 the cheaper compared to expected growth the stock is.
More than 1 and you are paying a premium.

[Beagle]

In this market with an average forward PE for the market as a whole of circa 18 times earnings a PE of about 29 for a company with expected growth of 30% per annum it seems to me that ATM is cheap relative to the market overall. Market and valuation theory needs to be reviewed contextually and in relativity to interest rates and overall market PE.
One only needs to look at the must slower growth rate of other companies on the NZX50 with a PE of circa 30 to validate my viewpoint.

[kizame]

In this market with an average forward PE for the market as a whole of circa 18 times earnings a PE of about 29 for a company with expected growth of 30% per annum it seems to me that ATM is cheap relative to the market overall. Market and valuation theory needs to be reviewed contextually and in relativity to interest rates and overall market PE.
One only needs to look at the must slower growth rate of other companies on the NZX50 with a PE of circa 30 to validate my viewpoint.

I think if you start looking at the over value in some of the other stocks with a PE of 30 and much less than 30% projected growth,and comparing,thinking maybe a peg of 1 or maybe 1.4 for the stock your looking at is now reasonable,you run the risk of getting caught out in a correction. The whole idea of peg is to buy value,and a good way to put a value on a high growth company with an expanded pe ratio. imhop.

[Beagle]

I think if you start looking at the over value in some of the other stocks with a PE of 30 and much less than 30% projected growth,and comparing,thinking maybe a peg of 1 or maybe 1.4 for the stock your looking at is now reasonable,you run the risk of getting caught out in a correction. The whole idea of peg is to buy value,and a good way to put a value on a high growth company with an expanded pe ratio. imhop.

I generally avoid stocks with a forward PE of 30 unless they're supported by that growth rate.

[Snow Leopard]

ATM kicking AIR out of the top 20 on 20-Mar.

Best Wishes
Paper Tiger

[Vish]

Came across this.

http://www.prnewswire.com/news-relea...300418553.html

Might be a good thing for them in the US market. Who doesn't like chocolate milk

[kizame]

ATM kicking AIR out of the top 20 on 20-Mar.

Best Wishes
Paper Tiger

It is, it is , it is ! OMG you just have to talk about it and stuff happens.

[see weed]

Came across this.

http://www.prnewswire.com/news-relea...300418553.html

Might be a good thing for them in the US market. Who doesn't like chocolate milk

I suggested to the CE0 a couple of years ago at the AGM about chocolate milk. It was about the same time as that other company Creamy Road, I think, started making it. Once those Americans get a taste of choc. milk, they will prob. double their growth. My sister in LA told me she is drinking a2 now. Hope NZ gets to share some of this chocm.

[Vish]

Good suggestion! 👍 Wouldn't mind trying some though, bring it to NZ ATM!