OK - shall we talk for a change about ATM, shall we?
They are still on my watchlist and I could imagine buying some at some stage again. However ... this does not look like an uptrend:
Attachment 12241
From a more fundamental perspective ...
Not sure I would call the board a see of red flags, but they certainly didn't came smelling like roses out of the Hrdlicker saga. Is there any evidence that they have learned from their mistakes and been more skillful in picking the next CEO? Do we know when he starts anyway, or is he still pondering whether he really wants to take the job?
Looking into the history of the second down grade ... did anybody feel that they have a good command and understanding of their trade channels, or did it more feel like the downgrade crept upon them as surprise because they don't really understand their sales channels?
In my view was the story not really a recommendation for a switched on management team knowing what they are doing ....
ATM is still not really cheap. Sure - a forward PE of 21 combined with a forward growth CAGR of 25 sounds really sexy, but only if the analysts predictions come true. What evidence do we have that they might be right? If we learn from the past ... analysts said 12 months ago the stock is an accumulate (i.e. should grow better than average), but SP dropped in 12 months by 30 percent while NZX 50 did grow. Are we sure the same analysts are this time around righter?
Just saying ... I don't know where the stock goes from here - and nobody else does either, but I certainly would not bet the farm on them going up from here, and hey - as the legend KW used to say: "Never drink and buy into a downtrend, you bl**dy idi*t". Do I need to confirm that she was usually right :)?
Discl: not holding;
DYOR and do not sell or buy based just on my or anybody else's posts. They are only meant to provide some food for your own grey cells. "Do Your Own Research"