A2 Milk

In by Alex Hall1 Comment

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Alex Hall

Hi,

Apologies if you have already answered this question, but I have only just started listening to your podcast. I am a fan of what you guys are doing, however in episode 2 I note that Ren states that A2 milk is not worth buying due to the fact that it is trading at 52x earnings. However this was in February 2017 and the stock steadily increased for the next 12 months to grow approximately 460%.

Now I am not trying to point this out as a mistake in advice, however I would like to know for what reason this stock increased despite trading at 52x earnings and if the signs were there that it could in fact keep increasing (in retrospect). Did you learn anything from watching these gains? Also, did you guys sell your stock or did you keep riding the wave??

Thanks,

Alex Hall

  • Edit
    EquityMates

    Hey Alex,

    Thanks for reaching out, and apologies for the late response. But, what a question! Epic!

    This deserves an answer on an episode, which we will do in mid-Jan when we are back, because there is a lot to this. I hope you don't mind waiting until then.

    I can answer the selling question though. As far as I am aware, Alec (Ren) still holds some of his stock and did have a stop loss in there if it began to fall. I'll quiz him on this in the episode. I bought into the stock much later on, so didn't quite get the returns that Alec did, and I have since sold them. I have learnt a lot from watching A2M, as I'm sure Ren has as well, and we'll dive into it on our 'Ask Us Anything' ep in mid-Jan.

    Cheers,
    Bryce