Well done holders.
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Or could it also mean Synlait cannot handle the volume even with their new factory and A2 need more processing power
The result is fantastic but I think it will be the announced strategic relationship with Fonterra that will boost the SP today.
http://nzx-prod-s7fsd7f98s.s3-websit...467/274777.pdf
This is a phenomenal result in its own right, (EPS which is what really counts is up just on 150%) but when you consider that for much of this half they were supply constrained (Synlait's doubling of canning and drying facilities only kicked into gear in November) the future growth prospects look truly exceptional especially with the strategic arrnagements with Fonterra which look to secure their long term supply arrangements.
Synlait, (I also hold) will do just fine with their recent doubling of capacity and other growth initiatives.
For those that think the PE is too high I note half year EPS of 13.7 cps. It should be plainly obvious with the doubling of supply capability of Synlait now in full swing that the company should easily eclipse EPS for the full year of an absolute minimum of 30 cps, (my target is higher) and at $9.30 that puts ATM on a 2018 PE of 31.
This company is shaping up as the premier growth stock on the NZX and I think that PE is very cheap for the way the company is growing and its medium and long term growth opportunities.
ATM presents as an outstanding opportunity for shareholders to build wealth going forward. Disc: I topped up late last week and again yesterday.
Isn't it funny how ASB Securities shows the announcement at 8.31am on their site, but blocks you from reading it. Over half an hour now:t_down:.
You also think this is big acknowledgement by Fonterra that they need to jump onboard with ATM rather than try and compete a losing game. Good result for both companies.
http://www.4-traders.com/A2-MILK-COM...22/financials/
Before this announcement the average brokers expectation was for EPS of 23.7 cps for 2018. I'm expecting them to exceed brokers EPS targets for FY19 of 31 cps and am therefore expecting analyst upgrades on the back of this superb result.
pe still very high ... expensive if your buying now i reckon
beagle says — this company is shaping up as the premier growth stock on the NZX ....
NO NO you are WRONG
It’s the premier growth stock in the world
Already getting US punters interested .....watch the rush as they come after your shares
Do you really expect to buy a company growing earnings at 150% on a market average PE for 2018 earnings of about 22 ? If so its time for a serious reality check mate.
Companies growing earnings at this rate on the NASDAQ can trade at 100 times earnings or even more ! Bottom line is the PEG (Price earnings to growth) is just on 0.2. Anything less than 1 is considered good value. 0.2 is exceptional value and I would reiterate, for much of this half they were product supply constrained !
My one reservation with this company about how they are going to source enough A2 raw milk in the future has been solved with the Fonterra strategic agreement.