Should do well from a declining dollar. Not sure I would be a buyer at these prices, but a very happy long term holder.
Question: what do you value Synlait at currently?
Correct me if I am wrong, but If you wouldn't buy at these prices, you must then feel like it is fairly/overvalued and will not outperform the market moving forward.
Correct me if I am wrong, but If you wouldn't buy at these prices, you must then feel like it is fairly/overvalued and will not outperform the market moving forward.
For what it is worth: NTA $2.16; Analyst consensus $5.80; Value based on Graham's formula: $12.58; value based on 10 forward PE: $3.50; SP $7,96;
I guess this indicates that the analysts don't believe that they can stick with their roughly 15% CAGR - or that they factor in a risk premium. I guess the A2 story could either end at some stage, or alternatively it could take over the world. Interestingly - both options would be bad for SML. Option 1 would mean nobody wants their top line product anymore and option 2 would mean that there are lots of competitors selling the same stuff.
Very difficult to define a fair price for such a company without having a flawless crystal ball. Personally I think they are at the moment a bit too hyped up considering the potential risks, but then - if everything goes to plan they are still undervalued.
Discl: still hold some, but sold most of them. Might have been the wrong decision - or maybe not.
Last edited by BlackPeter; 21-10-2017 at 04:52 PM.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
All good news, and forward statements very encouraging, like the bit about growing at pace. Population growth in
markets should keep tailwinds moving in the right direction.
Time for a bump. I'm late joining this particular party but bought in today. Looking forward to positive attention going off ATM and back onto SML later in the week / next weeks as AGM nears.
Edit. And while I have your attention, whats with all these volume parcels of 1 - 10 shares going through at 12:49 12:50. Rats and mice 5 - 10 below other trades?
Probably bot trading minimoke. I have been buying too. Took a punt and bought up a few last week at just under $7 and a few more this week prior to the ATM annual meeting.
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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Originally Posted by ratkin
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