I think they would have estimated EPS for year ending 30 June 2024 at say 30 cents.
30 cents divided by $5 is 6%, which is minimum return for the stock market.
If they wanted a higher return than 6% then their forward 12 months price would be less than $5.
But do your own sums. There are only two variables, estimated EPS and the return you want = share price.
I think the hard reality for a2 is they are changing their profile from a high sales low marketing cost company to a more boring medium sales growth higher marketing cost type company, with a much higher overall strategic risk profile, e.g. registration for Synlait. The share price reflects this.
I am anticipating a long hard road ahead for A2. the medium/longer term should be ok because its a good product.
GLTASH
A2M Price at posting:
$5.95 Sentiment: Hold Disclosure: Held
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