Had a quick look at results to 30/12. Noticed earnings per share (EPS) was about 10 cents so full year result probably around 20 cents.
So if 10% net profit growth, EPS for year ending 30 June 2024 will be about 22 cents.
If I pay $7.00 for a share on 1 July 2023 my expected return for 2023 - 2024 will be 22 cents divided by $7.00 which is 3.1%.
That's a poor short term return so I think the share price will struggle to get over $7.00 until there is a material improvement in EPS.
Think that's why the share price got smashed this week.
They absolutely have to get MVM up to 100% operating capacity to absorb fixed costs into saleable product.
I think the only upside for a2m is that they have good growth opportunities so the medium to longer time horizon looks good.
Think the stock will range trade up to $7 over the next 12 months..
Suggest you all model your own forecasts using above methodology and see what share price you get.
I.e. the share price is simply a ratio of your estimated EPS, and the return you want. i.e. if you want more than a 3.1% return your share price valuation will be lower than $7.
I still hold a2m, I am disappointed, but I am not selling.
GLTASH, We push on.
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Last
$6.70 |
Change
0.110(1.67%) |
Mkt cap ! $4.843B |
Open | High | Low | Value | Volume |
$6.64 | $6.77 | $6.64 | $12.36M | 1.844M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 10812 | $6.69 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.70 | 12740 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 22349 | 6.670 |
2 | 17277 | 6.660 |
3 | 11128 | 6.650 |
1 | 3468 | 6.640 |
1 | 5000 | 6.620 |
Price($) | Vol. | No. |
---|---|---|
6.700 | 12740 | 3 |
6.710 | 20797 | 3 |
6.720 | 9552 | 4 |
6.730 | 4993 | 1 |
6.740 | 24993 | 3 |
Last trade - 16.10pm 04/07/2024 (20 minute delay) ? |
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