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Re: [sharechat] Frucor's Friday Announcement


From: "nick" <acummin@es.co.nz>
Date: Sat, 13 Jan 2001 19:13:35 +1300


 
          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.
 

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