Forum Archive Index - June 2000

["nick" <acummin@es.co.nz>]

           Ril may have a point when using fruco as an example

of the poor state of our market.  They had planned to list for around

2.00 a share but realised in the current climate that they were maybe

over optimistic.   By listing at 1.50 im sure they were expecting the

shares to be snapped up on listing.  When i heard the price was going

to be 1.50 i was kicking myself for not participating in the float.

               The question is , is fruco now at a bargain price?

    Many commentators were recommending the float when the expected

price was around 2.00, including frank newman, author of "making money

on the nz share market" Others felt the companys forecasts were rather

optimistic.   Even if this is true surely that has been more than compensated

for by the present low price.

      .  So why is the share price so low?

      1. General market malaise

      2. Plenty of other undervalued stocks

     3.  Wait and see approach

     4. Small size of stock keeping big institutions away

     5. Stags are now selling as they realise that no initial profit

         is possible

 

        WHY SHOULD YOU BUY

1. Stock has huge potential, if they can break into british market

    the sky is the limit

2.   Good product range

3.  Good management ,which have done wonders with the company

4. Anecdotal

   I was very sceptical at first about their product V

.  However since hearing of

the planned float i have been keeping eyes and ears open and have to say that

the drink certainly seems popular.  At work i noticed quite a few people drinking

it at lunch. I asked the woman in the canteen how many they sell , she

said about 200 cans a week.  Many in the manufacturing area are doing long

shifts, when i asked them about v they definatly felt it gave them energy for the

afternoon. Some felt it was psychological but bought it anyway. It wasnt just

the teenagers drinking it either, several others from management were inbibing.

              The competition dosent seem up to much and V with its distinctive yet

simply designed can  seems to be the drink of choice.

 

            Nick

Disclosure   i have put in a buy order at 1.45