This is a phenomenal result in its own right, (EPS which is what really counts is up just on 150%) but when you consider that for much of this half they were supply constrained (Synlait's doubling of canning and drying facilities only kicked into gear in November) the future growth prospects look truly exceptional especially with the strategic arrnagements with Fonterra which look to secure their long term supply arrangements.
Synlait, (I also hold) will do just fine with their recent doubling of capacity and other growth initiatives.
For those that think the PE is too high I note half year EPS of 13.7 cps. It should be plainly obvious with the doubling of supply capability of Synlait now in full swing that the company should easily eclipse EPS for the full year of an absolute minimum of 30 cps, (my target is higher) and at $9.30 that puts ATM on a 2018 PE of 31.
This company is shaping up as the premier growth stock on the NZX and I think that PE is very cheap for the way the company is growing and its medium and long term growth opportunities.
ATM presents as an outstanding opportunity for shareholders to build wealth going forward. Disc: I topped up late last week and again yesterday.
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
This is a phenomenal result in its own right, (EPS which is what really counts is up just on 150%) but when you consider that for much of this half they were supply constrained (Synlait's doubling of canning and drying facilities only kicked into gear in November) the future growth prospects look truly exceptional especially with the strategic arrnagements with Fonterra which look to secure their long term supply arrangements.
Synlait, (I also hold) will do just fine with their recent doubling of capacity and other growth initiatives.
For those that think the PE is too high I note half year EPS of 13.7 cps. It should be plainly obvious with the doubling of supply capability of Synlait now in full swing that the company should easily eclipse EPS for the full year of an absolute minimum of 30 cps, (my target is higher) and at $9.30 that puts ATM on a 2018 PE of 31.
This company is shaping up as the premier growth stock on the NZX and I think that PE is very cheap for the way the company is growing and its medium and long term growth opportunities.
ATM presents as an outstanding opportunity for shareholders to build wealth going forward. Disc: I topped up late last week and again yesterday.
I agree - they always have tons of cash. How many fastly growing companies can say that?
You also think this is big acknowledgement by Fonterra that they need to jump onboard with ATM rather than try and compete a losing game. Good result for both companies.
Before this announcement the average brokers expectation was for EPS of 23.7 cps for 2018. I'm expecting them to exceed brokers EPS targets for FY19 of 31 cps and am therefore expecting analyst upgrades on the back of this superb result.
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
Bookmarks