I’ll be the third to agree. Marketscreener is a guide and has been very accurate to date in regards to turnover figures, but I believe the public determine the share price not marketscreener.
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I haven’t been here for quite a while but I still see the same patterns. couta1 says cheap as chips = hes long knee deep. Over priced = He got out a few weeks ago.
For this company it seems true, as well as not discounting the massive cash bank looking like getting up to close to a billion $ this or next FY. That in itself opens up all sorts of possibilities.
Current share price presents better opportunity than missing out on the next leg up imo, with ATM one blinks and it’s gone, until fomo kicks in and accelerates the ramp up. The short covering when it kicks in will be epic. Today’s gap up open is suggestive.
The rounding bottom on the chart is looking promising as well, log scale of course 😉
Not in my book mate. Most DCF valuations I have seen are ostensibly a whole bunch of guesses clobbered together with a wild guess on the terminal growth rate clobbered together into a discounting model.
Forward PE was about the same,30, when Geoff Babbage was running the company and it was growing eps at several times the forecast rate for FY20.
Lower forecast eps growth for the foreseeable future says to me the PE needs to come down to a more realistic level in my book.
Time, as usual will tell.
Beagle me old mate - think about what you said through
A PE ratio is ostensibly a DCF in disguise or as they say in the trade ‘a lazy man’s DCF’
When you come up with what you assess a ‘fair’ PE for A2 to be it means you the one who is making ‘a whole bunch of guesses clobbered together with a wild guess on the terminal growth rate clobbered together into a discounting model.’
Observation - when posters start arguing about PER and how it is irrelevant etc, hope has taken over from greed as a driver of the stock sp.
Me? I think that the 'new' CEO is guiding the market towards lower growth and profit (than market) expectations and analysts are reacting accordingly to the 'guidance' by recommending a more cautious approach.
If she does a good job of massaging the guidance so that A2M always over-deliver on market expectations, the stock will be rewarded with a high PER.
One thing A2M can not afford is to not meet market expectations again - if it does, the sp will be down below $10 in no time.