A2M 0.88% $5.60 the a2 milk company limited

Why buy SM1 which is over earning and trading on twice book...

  1. 7,300 Posts.
    lightbulb Created with Sketch. 234
    Why buy SM1 which is over earning and trading on twice book value when it could build a plant for half the price?

    Makes no sense whatsoever.

    A2 already has certainty of supply from both SM1 and Fonterra. We don't need the business to be weighed down by big chunks of stainless steel that requires maintaining.

    A2 converts $1 of cash for every $1 of EBITDA. It then pays tax and that's it. No capex other than maybe a few computers for its 200 staff.

    ROIC after adjusting for refrained cash and SM1 investments is off the chart. it is this ROIC plus it's growth that is creating wealth for us all. Not hard assets.
 
watchlist Created with Sketch. Add A2M (ASX) to my watchlist
(20min delay)
Last
$5.60
Change
-0.050(0.88%)
Mkt cap ! $3.808B
Open High Low Value Volume
$5.62 $5.68 $5.55 $2.966M 528.0K

Buyers (Bids)

No. Vol. Price($)
19 19295 $5.59
 

Sellers (Offers)

Price($) Vol. No.
$5.60 533 3
View Market Depth
Last trade - 12.39pm 04/12/2024 (20 minute delay) ?
A2M (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.