Originally Posted by
Ogg
On that calculation Comvita is worth $1b then?
You're not looking at the full picture. A2 went into administration at one point. Comvita have had really good years. Sure, A2 is outperforming in the last few years. My point is that they're both good/similar.
Would you be shorting A2 now? The real question is what's the long term valuation. Where will these companies be in the year 2030? I'm not asking for mega bucks for Comvita, just a decent premium given the situation and long term outlook.
I see it's at $7. Supply looks tight. Weak hands have probably sold out looking for sub 20 PE companies. Mostly the believers holding now.