A2 SP Where Next, page-80

Thanks Legacy,

I have to say your analysis is spot on. Having said this, my two main concerns are that any bad news e.g. even a sniff or sneeze from A2 and the SP dips 25% (which we've already seen). The main problem with darling stocks is that they're priced to perfection, and imperfection means a HUGE dip (often giving back 1 year of gains) - other examples are FB, NFLX, Tencent (I'm getting murdered here), etc.

My second hesitation is that my other holding AMI:ASX is posting equally impressive numbers. They've also paid of 100% of their debt in one year ($85mn); actually I dare say AMI's numbers are even more impressive than A2, yet they're trading at a trailing PE of 4, PB of 2.9, and forward PE somewhere around 2.5. They've currently got the world's lowest AISC of $509/oz gold and have forward hedged 76,000 oz of gold at a higher price than the current low - basically gold will have to go below $509/oz for them not to make a profit.

What are your thoughts in regards to the points I've raised? Also, do you think FY 2019 will see A2 post equally impressive numbers?

Cheers,
SB