ARCTIC GROUP AGP-ASE Message Board

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Gold/Mining/Energy : ARCTIC GROUP AGP-ASE

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To: Roy Cetlin who wrote (33)	3/22/1998 1:39:00 PM
From: Ice-Man	Read Replies (1) of 101

Hi Roy! I think it's tough to predict where AGP may go from here. If you look at the one year chart, it appears the uptrend looks like it hasn't run out of steam yet for the long haul. I guess it all comes down to what kind of developments continue to unfold. You have to figure a company with now over $50 million in annual sales with the completion of the already announced acquisitions, will start to attract more & more attention. YF has only 100 million in sales and the arctic group should pass that figure this year I think. YF is trading at over $10. The arctic group also has a far better profit margin of around 20%. It's a growth story now, but I think the earnings potential is not too far away. Remember these ice companies they're buying (besides being profitable) enjoy long established, dominant localized markets, so the forecasted revenues will at the very least be stable over the long term. It's what I think you could call a niche market situation. As they say... "Don't fix it, if it's not broken." The only thing really changing in AGP's acquisitions is the ownership of the company's they are acquiring. Operations & management (unless companies they are acquiring compete in the same marketplaces) in the majority of cases will remain the same. Hopefully this means the costs associated to consolidation of operations will be minimized. Also now being Canada's largest ice supplier could help open a few more doors. Quebec to British Columbia. That's one heck of alot of ice bags floating around the country this summer. Glad to hear you made some money & are still figuring there's some upside left in the ice story. I think there's short term upside left in AGP if for no other reason, spring has officially arrived, so summer can't be too far away! Here's hoping for an extended hot spell, or two across North America this summer!

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