attn gaweb - for your information...

  1. Yak
    13,672 Posts.
    I'm a past holder of SRP - not @the momnet

    Saw this in my daily from Macca's - thought you might be interested

    Southcorp (SRP) $4.63

    Short term Hold, long term Buy, risk factor Low/Medium

    Southcorp yesterday released AC Nielsen data for the
    Australian, US and UK markets and its major wine brands
    within those regions.
    The Australian data is new information and highlights that the
    market is growing strongly and, for the previous quarter, at a
    faster rate than last year. Southcorp has underperformed the
    market over the last 12 months but has achieved a significant
    turnaround in the quarter, more than doubling the 12% growth
    of the market.
    The data includes sales for Coles and Woolworths and the
    turnaround has been due to increased business with these
    major retailers. This suggests the growth has come at the
    cost of higher promotional spend, a shift in mix to lower
    $/case brands and possibly some discounting activity.
    The US and UK data are less reliable estimates of shipment
    growth in the first half given long lead times between
    shipment and subsequent sale to consumers due to time
    spent on the water and in customs (and the distribution
    network in the US) of approximately 10 weeks.

    We maintain our short term Hold, long term Buy for
    Southcorp and our valuation of $6.42 per share.
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