I am accumulating more. I don't think there is anything left to see. The results are already out. The only question mark is the macro economic picture which every business is susceptible to not only ATL.
Here are a few reasons why I'm accumulating:
#1 - The P/EBIT (adj) is 2x. I can't even buy a private business for 2x EBIT.
#2 - From an adj EBIT valuation point of view, it dropped by ~10% from 40m (FY18) to 35m (FY19) but the market cap of the business dropped by ~75%. If that's not an overreaction, I don't know what is.
#3 - They are well funded to execute on their growth strategy. They don't need a cap raise to fund working capital unlike 90% of the small caps out there.
#4 - The founders (Luke and Karl), chairman (Stephen), non-executive director (Sophie) have all increased their holdings since last FY.
#5 - Management owns > 50% of the shares.
ATL Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
