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clock Created with Sketch. 29/09/17
18:17
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Originally posted by winsomelosesome
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I am not saying A2M is a bad company and never have. What I am saying value is not growing like the share price would have us believe. If the price can come back to its real intrinsic value and not the imaginary one people are talking about. Then I will definitely buy. Also there are a lot of assumptions in your post. None of which are guaranteed as of yet. So just remember that. Now lets presume hypothetically those numbers ends up being true. 900m revenue. NAPT if 160 million. My value is between $2.50 to $3 range. Even with NPAT of 300 million. Value is around $4. Current price $5.90. Was $6.50 the other day. To me that indicates the market is expecting results to be better than what even you are quoting. If they are not expecting this. Then sadly they have all become irrational and simply buying this stock for no other reason than it is going up. And don't want to miss out on the rewards if it continues to rise.
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So at $4 market cap is less than 3 billion. With 300m NPAT you are assigning a <10 PE ratio?!? LOL you do know the banks grow 1% a year and have a ratio of 15. You will never make money in the market if you keep thinking like you do. You really lack basic valuation knowledge if you think A2 is a 10 PE stock.
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