Don't undersetimate growth

I love how everyone thinks the A2 story is near an end when January 1 2018 is the start of the brand consolidation.

Chinese brands are going to consolidate from over 2000 to less than 100 currently (Growing back to 300 on registration).

So basically holding their market share relative to the other registered producers results in a 2 fold growth outlook from here.

Also gross margins are likely to increase further as A2 has pushed prices up plus input prices have declined. I expect these to improve from 48% to 52-55%. A 1% lift in GM is equal to $9m of EBITDA. So a lift to 55% adds $63m of EBITDA. Another point is EBITDA to Cash conversion is almost 100% so the majority of this lift goes straight into the bank....

This is a $20-30 stock over the next growth period. Forget about $10 targets which only exists because it is the next round number. I have no doubt it will work hard technically to get through this round number but don't lose sight of the wood from the trees.....

All my own opinion but I can have one as much as anyone.