Michael likes A2 Milk (A2M). “Analysts were unimpressed by last week’s Investor Day but the numbers still add up, he says.
“With long-term growth above 15% and a price-to-earnings ratio around 30x, the 25% share price pull back looks like an opportunity,” he adds.
Michael doesn’t like Collin’s Food (CKF). “Its share price is boosted by its addition to the S&P ASX200 index,” he says.
“However, at close to $10, the share price is at all-time highs, on a P/E ratio around 24x.
“The KFC and Taco Bell franchise holder would need spectacular growth to justify this sort of multiple,” he adds.
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