Forum Archive Index - July 2000

["Mike Beal" <mike.beal@amb.co.nz>]

Frucor stats:

- Target market is primarily 18-24 year olds;
- Using mid-point in indicative price range ($2.10) P/E = 12.9
- F/cast Dividend yield of 5.7% 2001
- 60% market share in NZ AND Australian energy drinks market
- Recent sales in Australia exceed NZ and continue to grow strongly
- Earnings forecast for 2001 ten times higher than that of 1996
- Friend was recently looking after a bunch of kids, she purchased Coke for
them and they complained bitterly that it wasn't V!
- Interest coverage 7.7x f/cast 2000, 9.4x f/cast 2001
- In response to Donald's email about how poorly Pepsi has been doing,
Frucor only took over this brand in November '99
- In response to V tasting like medicine - that was Coke's original purpose
- In response to V being too sweet - Coke launched the disastrous 'New Coke'
because Pepsi was killing them in blind tastings (Pepsi's sweeter than Coke)
- Coke's response via 'Lift Plus' sucks.
- With a relatively tiny int'l market cap who knows, maybe a Coke will step
in and decide 'look at that pesky little company with a market cap of only
NZD250m, that little product V's doing quite well, perhaps we should buy it'
(with petty cash)
- Few capital expenditures, it makes the stuff and doesn't distribute it
- Per capita consumption in Oz of energy drinks is 0.5 litres vs. 2.3 litres
in NZ

Still maintain that this is an awesome growth stock opportunity with a value
stock price tag!

Mike B.



----- Original Message -----
From: Ben Malthus <bdm39@student.canterbury.ac.nz>
To: <sharechat@sharechat.co.nz>
Sent: Sunday, July 23, 2000 6:25 PM
Subject: Re: [sharechat] Frucor again


> >
> >
> > 1. Having first tried it and found it horrible what prompted you to try
it
> > again e.g. advertising, other students
>
> To be honest I can't remember. I probably tried it again about a year
later due
> to it's popularity or advertising. Alot of students like to use it as a
mixer
> with vodka or other alcohol  as the combined taste is quite good. The
marketing
> is definitely a success some people collect the bottles and it stands out
a lot
> better than lift plus. My local supermarket has been selling it quite
cheap for
> about a year, $1.99 a bottle and $5.00 for 4 cans.
>
> >
> >
> > 2. Having overcome the taste problem does it give you some sort of lift
?
>
> Hard to say probably not unless I drink alot as I think you get a
tolerance to
> caffeine & guarana and as I would probably drink either V coke or say lift
plus
> about once a day I think am likely to have a slight tolerance to either
> stimulant.
>
> >
> >
> > 3. Might it be addictive ?
>
> Most likely psychologically. I  like the taste now although sometimes I
find it
> too sweet.
>
> > (discl hold frucor)
> >
>
>
> --------------------------------------------------------------------------
--
> http://www.sharechat.co.nz/          New Zealand's home for market
investors
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/forum.shtml.
>


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.