I think you are maybe being a little unfair to Frucor, surely its
good that
they are keeping shareholders
informed of progress. Remember they were quick
to inform us that sales in the uk
were suffering because of distribution problems.
I too found the announcement about
increased sales since 08/1 rather
amusing ,
However, if next weeks
results are bad why would they be so upbeat this week?
MY own feeling
is that sales in the uk may not be quite as good as hoped,
and that they are trying to
focus on the good points. I expect the company has
done really well in NZ and
australia but has had some teething problems in europe.
In my view this
was only to be expected and they have the european winter
to sort out their distribution in
the uk. I have every confidence in the ability
of the management team and have
been very impressed with the way
they have kept the market informed
of activities.
nick
What a very strange announcement
Frucor made on Friday 12/01/01. With its half year revenue results
due at the end of next week, why come out with some carefully selected
information a week early?
Strange to the point of surreal is their statement
that:
"Sales of "V" are ahead of budget since Frucor
Australia took over its distribution on 08/01/01"
Sorry, but between 08/01/01 and 12/01/01 is one working
week!!!!!!! In my experience, a company reporting progress to any
stock market after just one weeks' operations is unusual to say the
least!! Has Frucor made a mistake with its dates or are we now to expect
weekly reports from selected locations?
"Frucor Beverages advised that it has successfully
established its own Australian distribution network and has effected the quick
and smooth transition of "V" distribution from Spring Valley with increased
sales and a bright outlook for the company."
Okay - Frucor shares have been on a bit of a downtrend
lately and maybe Frucor are simply flying the flag and telling their
shareholders to keep the faith - but I still can't figure out why announce
this now rather than next week.
It can be imprudent for any company,
particularly one such as Frucor where significant growth and
shareholder expectation is already priced into the
share, to make announcements such as this. The
market can grow to expect progress reports and if, for whatever reason,
these are not forthcoming, the stock can be punished badly causing delight for
traders but anguish for the many who have invested in the hope of strong but
steady growth. For example, if Frucor make new
arrangements for distribution or marketing or sales or something in the
UK and we haven't heard anything for two or
three weeks should we begin to expect the worse?
p.s. I have followed Frucor with interest but I am
neither short nor long in this stock.
See IRG research reports
