A2M 0.30% $6.72 the a2 milk company limited

Cheapest growth stock on ASX, page-6

  1. 501 Posts.
    lightbulb Created with Sketch. 84
    sure but what happens if they fall below 20-30% CAGR? Especially in EPS growth - given expenses are rising due to marketing and revenue growth is slowing.

    I'm very bullish long term on A2M and am already very overweight so would love A2M to hit this 30% growth, but you can't assume they will hit these huge growth figures. High growth stocks have a high potential to disappoint the markets very high expectations, and if/when they do, there is a big correction due to the implied higher valuation the market gives in the hope that it will grow earnings into the P/E, rather than shrink Price into the P/E. Look at Wisetech, look what is happening to Appen and Afterpay last few days. Only saving grace in the high growth sector is Xero as they continue to outperform expectations.

    If you are a retail investor with little knowledge, I would wait until after the AGM to decide whether to invest here, there is a lot of risk even at these 'deflated' prices. You might miss the first 2-3% upside, but if management show that even with higher marketing expenses they are growing revenue at a consistent pace, then it will be green light go.

    Just my 2c. Not trying to downramp, just trying to provide a reasonable counter-argument to all the blatant upramping going on here.

    GLTAH - DYOR
 
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Last
$6.72
Change
-0.020(0.30%)
Mkt cap ! $4.858B
Open High Low Value Volume
$6.81 $6.89 $6.68 $14.52M 2.142M

Buyers (Bids)

No. Vol. Price($)
1 13046 $6.71
 

Sellers (Offers)

Price($) Vol. No.
$6.73 17123 4
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Last trade - 16.10pm 14/08/2024 (20 minute delay) ?
A2M (ASX) Chart
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