Hi Afzal,
We do not provide personal advice hence we won’t discuss your positions, we can only discuss how we see both stocks today:
Mesoblast MSB) $1.065 – we don’t intend to invest in the Biotech industry because the stocks tend to have very binary outcomes and backing a winner can at times feel like looking for a needle in a haystack.
- We have no interest in MSB after its bounced around four-fold.
a2 Milk (A2M) $6.27 – After a shocking few years A2M has come back to life over the last 6-months. We like this recovery play helped by a 40% rise in profits on FY23 levels by FY26e driven by strong infant formula sales growth across both English and China-labels, and some daigou channel recovery. We believe investors remain too cautious with its valuation suggesting no significant recovery is priced in.
- We like A2M even after its strong advance.