I wonder how they can make the claim, or prove that all of the milk is A2? Can someone with more knowledge of A2's IP enlighten me please?
it is relatively easy for Appleby Farms to prove their claim and I think you will find they are being v careful and conservative about their A2 heritage at this stage. To understand more about the 'technology' and IP, I suggest you read some of the posts by Prof Keith Woodford.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
it is relatively easy for Appleby Farms to prove their claim and I think you will find they are being v careful and conservative about their A2 heritage at this stage. To understand more about the 'technology' and IP, I suggest you read some of the posts by Prof Keith Woodford.
Thanks LeftField. Appreciate the link. I missed out on ATM but have Synlait.
it is relatively easy for Appleby Farms to prove their claim and I think you will find they are being v careful and conservative about their A2 heritage at this stage. To understand more about the 'technology' and IP, I suggest you read some of the posts by Prof Keith Woodford.
Good post yesterday about how outrageously overvalued ATM is at the moment ....buts it has disappeared ...hope a voluntary deletion by the poster
One point the poster made was that ATM is trading at 9 times sales ( multiples like SaaS companies get rewarded with)
I was going to reply that when sales double in the next year it will be down to 4.5 times sales ....as long as the share price stays up around the $12 mark.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Good post yesterday about how outrageously overvalued ATM is at the moment ....buts it has disappeared ...hope a voluntary deletion by the poster
One point the poster made was that ATM is trading at 9 times sales ( multiples like SaaS companies get rewarded with)
I was going to reply that when sales double in the next year it will be down to 4.5 times sales ....as long as the share price stays up around the $12 mark.
It's all about massive potential, so it's currently undervalued. SP $20 by this time next year.
Good post yesterday about how outrageously overvalued ATM is at the moment ....buts it has disappeared ...hope a voluntary deletion by the poster
One point the poster made was that ATM is trading at 9 times sales ( multiples like SaaS companies get rewarded with)
I was going to reply that when sales double in the next year it will be down to 4.5 times sales ....as long as the share price stays up around the $12 mark.
Could this be because ATM have similarly low capital requirements, similarly high margins and actually make money?
The last jump (from $9 to $12-$13) was in response to continued outperformance/growth, but also the JV with Fonterra and what that could do for sales but most importantly volumes and supply going forward.
Even the reported PE of 60 will come down to 45 if they repeated their last 6 months - which they clearly are going to do better. I think the Hungry Hound mentioned he expected PE to be down around 30-35 by the next HY.
I'm not worried about share price to sales, it is what comes out the bottom line.
I thought you would also love the cashflow statement W69?
Forward thinking investors are looking at the 2019 PE already which by my estimates in the mid 20's gives excellent prospects for ongoing SP outperformance in the year ahead as the company continues to grow strongly and remains with outstanding long term growth prospects.
MSCI inclusion and the effect of that process on 1 June is less than a month away now...
Last edited by Beagle; 02-05-2018 at 12:15 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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