Think the problem with brokers is that they don't do enough...

Think the problem with brokers is that they don't do enough research. They will take a macro like declining birth rates and apply it to A2's growth profile.

But the A2 idea is to take market share, irrespective of where birth rates are going. Much the same as new petrol service stations popping up every where in a limited, possibly declining fuel market.

Also most brokers don't provide their assumptions. In the case of Morningstar, if I recall correctly, their valuations are largely based on net asset valuation not on discounted cash flows. These valuation techniques are worlds apart.

Also brokers using discounted cash flows often do not give us their assumptions such as length of terminal periods, terminal values and discount rate used.

When you change these 3 variables the present day value of the share changes a lot.

Hence the herd tends to rely a lot on charts and we need to understand many will sell on herd mentality not fundamentals.

Enter the short seller.

I remain bullish on A2.

Time to crank up the lawn mower. Hope it starts. Enjoy the weekend everyone.