WHAT'S A GOOD CANADIAN STOCK TO SHORT Message Board

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Gold/Mining/Energy : WHAT'S A GOOD CANADIAN STOCK TO SHORT

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To: pavlov 1 who wrote (16)	2/21/1998 4:20:00 PM
From: Ward Nicholson	Read Replies (1) of 112

Anyone: How about Cott [BCB:TSE] for a short? From FP... Cott Corp. shares bubbled up 18.5% to $13.75 Friday on reports a U.S. money manager believes the company shares will sell for US$20. But other company watchers were quick to deflate the suggestion, citing Cott's high debt and a price war with Coca-Cola Co. and PepsiCo Inc., in the U.S., as reasons the company shares would not be sold for more than "a generous" US$11 to US$13. "I think that money manager's been hanging around a smoke-filled room with Canada's Olympic snowboarding team," said Allan Roness, an analyst who tracks Cott for J.W. Charles Securities in Florida. Cott stock (BCB/TSE) rose $2.15 in Toronto Friday, and US$15 1/88 to US$93 1/84 on Nasdaq (COTTF/Nasdaq). The company refused comment, saying only that Morgan Stanley & Co., hired to find a buyer in October, continues to shop Cott. The wild trading began with a report in Business Week published Thursday night on the Internet. In it, Forrest Mervine, managing director of Investment Counsellors of Bryn Mawr, said a likely suitor for Cott is British soft drink maker Cadbury Schweppes PLC at a price of US$20 a share. The 146% premium to Cott's close Thursday is justified because once the price war ends Cott's earnings will "explode to higher levels partly because of new products from acquisitions it has made," he said.

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