ATM - A2 Milk Corporation Limited

[longy]

There's a whole lot built into the current share price and happy to watch the hype from the sidelines until we get a correction. PS-PE ratio around 38 at current price.

Ooops...I was meant to say "Not chasing its SP"...Lol.

[JeremyALD]

There's a whole lot built into the current share price and happy to watch the hype from the sidelines until we get a correction. PS-PE ratio around 38 at current price.

I sold out to Couta. Looking at the charts one ounce of bad news will have this will dropping back significantly. ATM has a habit of overreactions (both on the sell side and buy side).

[Beagle]

Only one reason the short squeeze is on....looks like shorters covering their positions.

They have too, margin calls must be getting pretty serious at the current SP.

[Leftfield]

Interesting to see the Simply Wall St site sees even more value ahead to $A3.85. (The following in $A)

Attachment 8781

Disc - Holding and happy.

[blobbles]

Snoopy must be staring in unbelief at the current share price.. PS-Im also staring from the outside in after exiting too early myself.

Indeed, Snoopy had once, not so long ago, convinced himself that A2's SP was worth about 10c from memory.

I notice Snoopy is very good at analysing companies negative possibilities but appears to not take into account positive possibilities very well at all...

[couta1]

Interesting to see the Simply Wall St site sees even more value ahead to $A3.85. (The following in $A)

Attachment 8781

Disc - Holding and happy.

For long term holders who bought in early, no worries, but for those who paid $2.50 plus, I wouldn't be putting my faith in one opinion which happens to be out of step with all the other analysts.

[Jonboyz]

For long term holders who bought in early, no worries, but for those who paid $2.50 plus, I wouldn't be putting my faith in one opinion which happens to be out of step with all the other analysts.

Interestingly, simplywall.st reckons, from a summary of 7 analysts, that ATM earnings could go +107% in the next 3 years.

NZSE-ATM 1 and 3 year EPS growth Simply Wall St (1).jpg

[sb9]

Go you lil beauty....

[couta1]

Go you lil beauty....

Although I'd stay well clear of buying in at these lofty prices, you could get trashed when it drops (And it will) Why pay a premium when you don't have to?

[Leftfield]

Although I'd stay well clear of buying in at these lofty prices, you could get trashed when it drops (And it will) Why pay a premium when you don't have to?

Perhaps ATM is looking 'toppy' at a market cap of $2.2 Bill (at SP $3.14) and a PE of 38 however its record is very impressive, sound management, great geographical spread, sound technology and still only just scratching the surface of the many products it could offer/licence (at a premium) e.g. flavoured milk, yoghurt, cheese, ice-cream, etc. Crikey, ATM is even offering the carrot of dividend payments in FY2018.
FY2013 Revenue $94.7 mill
FY2014 Revenue $110.8
FY2015 Revenue $155.1
FY2016 Revenue $352.8
First half FY2017 Revenue $256 mill so ATM may achieve $500 mill plus for the full FY2017.

I welcome other posters estimates of a fair value for ATM, but at the moment Mr Market would seem to be indicating a SP between $NZ 3:00 and $3:50 is achievable. Clearly we all await the next market update with interest.

Disc; DYOR. Holding and happy.