Yogi,
I am not at all distressed by this quarter's market gyrations. I remain long on YF, have complete faith in management and was impressed by their qrowth numbers in the recent earnings release. Butterfat is an issue, but as far as I'm concerned it is a cyclical issue and thus does not deter me from averaging down and accumulating more shares (as I did at $3.74 on Friday)...the volume of late includes blocks of cross trades by major institutions. They are currently in an accumulation phase, IMO, with a longer term (read: two quarters) perspective.
I have not spoken to Michael S. lately because I don't feel there's a need to. In my view, YF will prove itself as an industry leader in the frozen dessert category, not to mention it's latest foray into the limelight of franchising excellence.
For momentum players (and believe me, I also play this game), YF is not the place to be right now...I have it safely tucked away in my RSP and don't need it to pay the mortgage or green fees)...however, I do have a sneaking suspician that during February, when the RSP dollars begin to roll in, few fund managers will be able to resist the oversold scenario of YF and buy into it because it is, without a doubt, one of the better value plays around.
As for FM's report, I have also spoken to Perry C. who wrote the article and I was not impressed with his analysis....it remains my view that YF will ulimately prove to be an attractive acquisition for either Nestle or Unilever given their adeptness in franchising and maintaining a strong balance sheet...time will tell.
In the meantime, if any YF shareholders need a quick fix of reassurance, I think a call to Michael would help - or better still, sit tight until mid February and watch the big boys buy in....this is not hype as I have studied this company intensively and was also interviewed by Globe & Mail for a followup story when I called them to object to a slanted (and inaccurate) article which appeared in their paper...please don't ask me to post the details here as it has since been corrected.
Just 2 cents from a "regular" even though I have not posted recently.
regards,
NOK |
