ARCTIC GROUP AGP-ASE Message Board

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Gold/Mining/Energy : ARCTIC GROUP AGP-ASE

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To: Jim Bishop who wrote (36)	4/23/1998 12:18:00 AM
From: Ice-Man	Read Replies (1) of 101

Hi Jim, I think the last couple of recent financing announcements stand out as rather significant.ÿ If you consider the original financing in the IPO just over a year ago was for $2M & the last two financing announcements have a combined total of $55M, then it's probably safe to say things have progressed nicely so far for AGP.ÿ I think it'sÿ a very good sign for the long term that they have access to large amounts of capital still early in this consolidation story.ÿ Considering the estimates of the total North American packaged ice industry annual wholesale revenues are in the $2-$2.5 billion U.S. range you'd have to think there's still alot more room for future consolidation.ÿ The companies they are now buying which have localized dominant market positions should provide stable long term revenue & earnings growth.ÿ Everyone with a kitchen & a freezer is a "competitor" of sorts, but there's only room for one major ice producer in each market. A news release from Suiza Foods (SZA-NYSE) on Mar. 30/98 indicated they were selling their ice business (Reddy Ice) to Packaged Ice Inc. subject to certain conditions.ÿÿ If the deal goes through then Packaged Ice Inc. will be the largest ice company in North America with revenues somewhere around $160M U.S. in annual sales.ÿ It will also mean there will only be two ice co. consolidators within the industry.ÿ Packaged Ice Inc. & The Arctic Group.ÿ It could lead to interesting possibilities as the months go by. I'm hoping the forecasted predictions for some very hot weather this summer come true.ÿ Hot weather makes people think about ICE! Good Trading, Markus ÿ

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