ARCTIC GROUP AGP-ASE Message Board

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Gold/Mining/Energy : ARCTIC GROUP AGP-ASE

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To: SurfForWealth who wrote (91)	7/18/1999 9:41:00 PM
From: SurfForWealth	Read Replies (1) of 101

I found this piece as part of a daily news wrap. It talks about a competitor to AGP with a similar acquisition strategy. I found it of some interest. I also took the comment about small caps with it. It has been a very hot and sunny summer so far in the Toronto area. Too hot for my liking but the ice sales should do well. Cheers!!! Not all promising treasures are found in the technology field. Some are chilling right now in your grocer's freezer. Packaged Ice (NASDAQ: ICED) is the leading manufacturer and distributor of…you guessed it…packaged ice. Trading at $5.38 per share, the company is positioned as a dominant competitor in the highly fragmented packaged ice industry thanks to an aggressive acquisition strategy. Shane Glenn of Stephens, Inc. reports that its competitive advantage comes not only from acquisitions but also from its self-contained ice manufacturing and proprietary bagging system, the Ice Factory. This machine generates higher margins and greater return on investment and allows the company to become the vendor of choice for many national retailers, reports Glenn. In fact, Packaged Ice recently announced an agreement to install the Ice Factory in 244 Safeway stores in Northern California. The company continues to expand across the U.S., raising expectations that further announcements of similar agreements are still to come. Glenn's 12-month target price for Packaged Ice is $15. Although the year began with a dreary start for small caps, there is reason for optimism. Investors of late seem to prefer relatively undervalued small cap stocks over very expensive large cap stocks, and are placing their faith in small caps with positive growth potential. This market preference for smaller stocks continues to apply directly to new issues, which are typically small, fast growing companies.

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