A2M the a2 milk company limited

I hold for long-term value creation over appeasing traders—but I...

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    I hold for long-term value creation over appeasing traders—but I acknowledge concerns about execution. Buybacks can provide short-term price boosts, but their real value lies in reducing total share count, increasing EPS, and driving long-term per-share value.

    The last buyback’s impact may not have lasted due to broader market conditions, China macro issues, or sector-wide trends—not because buybacks inherently fail.

    If A2M executes buybacks at undervalued levels rather than inflated prices, long-term shareholders benefit. Dividends ensure cash returns, but I’m here for price appreciation.

    Dividends make sense for mature companies with limited reinvestment opportunities. A2M is still in growth mode and can better allocate capital toward expansion, brand-building, or even acquisitions rather than issuing dividends.

    Shareholders who believe in A2M’s growth story should prefer reinvestment over cash payouts that may not yield superior long-term returns. A well-timed buyback at low valuations benefits long-term holders through increased ownership stake and higher EPS.

    While dividends are attractive, they reduce reinvestment capacity. Inour competitive space, prioritizing long-term growth is critical. If capital allocation is disciplined, buybacks and dividends can eventually coexist—but right now, reinvestment is the better strategy.

    A poorly executed buyback can feel like a short-term scheme, but a well-executed one increases intrinsic value. A2M needs to balance capital returns (dividends/buybacks) with strategic reinvestment.

    If the company is confident in its future, buying back shares at undervalued prices is a better use of cash than dividends. You want management to buy shares. What’s really the difference?

    Is a2m overvalued and done growing?

    Educate me. Dividends are a reason to hold? • Pre-Dividend Run-Up • Ex-Dividend Drop • Post-Dividend Stabilization & Buybacks • Sector Rotation & Institutional Flows. Rinse and repeat is not a hold.
 
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(20min delay)
Last
$7.83
Change
-0.120(1.51%)
Mkt cap ! $5.669B
Open High Low Value Volume
$7.97 $8.02 $7.77 $13.40M 1.707M

Buyers (Bids)

No. Vol. Price($)
1 7033 $7.82
 

Sellers (Offers)

Price($) Vol. No.
$7.83 8457 3
View Market Depth
Last trade - 16.10pm 24/06/2025 (20 minute delay) ?
A2M (ASX) Chart
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