Stay put because A2M have a better chance than Kraft a 72b USD company to be a new world dominant dairy company if they were started at the same starting line. 8.8b market cap is tiny for a2m with good brand image and ability to make the customer to come back for more.
If we keep looking back and thought this company raising 327% in 14 months is too much, we should also view this in light of EPS growth, from -0.3 to 4.1cps (2016) to 11.4cps(2017) and estimated to reach 21.8cps (MQG forecast) in 2017. By comparing EPS growth and PE ratio, we can see that A2M is now a clearer buy than when it was 2.0 back in 2016.
EPS growth from 2016 to 2018e = 532%
Share price growth from 2016 to 2018 = 484.69%
There is more certainty now in 2018 at price of $11.46 than $1.76 back in 2016.
I remember the struggle I had in 2016 to allocate fund to A2M given the lack of sales history and uncertainty in IF market.
It is a much easier decision nowadays as the uncertainty is gone.
I also suspect that the recent price drop is a result of credit tightening and therefore squeezing liquidity out of high PE stock.
Stay put because A2M have a better chance than Kraft a 72b USD...
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Last
$7.16 |
Change
0.010(0.14%) |
Mkt cap ! $5.176B | |||
| Open | High | Low | Value | Volume |
| $7.19 | $7.26 | $7.15 | $10.39M | 1.447M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 11484 | $7.15 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.17 | 9537 | 4 |
View Market Depth
| Last trade - 16.10pm 06/06/2024 (20 minute delay) ? |
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Last
$7.16 |
Change
0.010 ( 0.05 %) |
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| Open | High | Low | Volume | ||
| $7.20 | $7.26 | $7.14 | 491499 | ||
| Last updated 15.59pm 06/06/2024 ? | |||||
| A2M (ASX) Chart |