Originally Posted by
BlackPeter
I guess it is up to the market to decide what 25 or 30 cents EPS are worth. It is as well up to the market to decide whether they do see any risks to this earnings potential - or, on the other hand - growing potential.
Personally I would not pay a PE of 25+ for a boring old agricultural company (what ATM without the growth would be), more like half of that. I would be however happy to pay this PE if I would believe in a earnings CAGR of say 10 to 15.
I assume, this is what the (rational part of the) market prices in at the moment for ATM and hey - it might be right if they are lucky and the stars align. It is just that I don't see the management pulling this off, and investing just based on hope does not work for me :):