Further comments from Morningstar today. If what he says is correct why is the Market discounting this more than others.
Morningstar analyst Gareth James said Atlas' short-term targets were achievable but long-term production targets were less certain. "Their current production growth aspirations are going to cost money, but nothing like what it would cost to build a railway or to expand the port for longer-term growth," Mr James said. A slowdown in China and debt problems Europe had punished the company's share price, but Atlas continued to increase production relatively cheaply due to its conservative capital expenditure. "Atlas is a business that's in good financial shape," he said. "Things may weaken, but it's in a better place than most to withstand the downturn."
AGO Price at posting:
$1.69 Sentiment: LT Buy Disclosure: Held
