Bill, which biotechs look interesting? PPOD looks like it underwent a massive catalyst yesterday. I sent the below piece to Jim Seymour today. Lets see if he writes about it.
BTW I bought some PPOD today....and believe it or not , there was not a single mention on McLane's Investment in the Houston Chronicle today.
With McLane you have a guy who built a food distribution company that was so successful that WMT bought it and McLane is such a great Manager that WMT had him run it. And everyone touts WMT as the having nailed the business model in their area.
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I am very excited about PPOD because of the investment in the company of Drayton McLane, which occurred yesterday.
I know a tremendous amount about him since he is the owner of the Astros for the past 6 years and I am a big baseball fan. The man is a
business genius and has been ridiculously successful. He said that he knew very little about baseball when he purchased the Astros in 1993, but has brought in one of the very best management teams in all of baseball. And has
had A+ results with the Astros. If only Bagwell and Biggio could hit in the playoffs -g-
with the WebVan IPO heating up this sector the valuation on PPOD will look quite compelling in my opinion, and the probability of successful
execution on PPOD's part has , in my judgement, just gone through the roof. The synergies between McLane's business background and PPOD's business model are an excellent match.
I can not think of a better Manager, with a better history of success in the technological innovation and logistics of food distribution.
This quote says it all.
Drayton's long-held vision for totally integrated, global data and logistics services, broadline exporting and
Full-service food distribution is rapidly taking shape. McLane Group's total commitment to its century-old code of "honesty,
integrity and high business principles" continues to serve customers, suppliers, employees, and partners successfully and without
compromise, worldwide.
here is some background info McLane.
mcexportsf.com
McLane and M-C: Combining a Long Tradition of Innovation and Superior Customer Service.
In 1994, when M-C joined the McLane Group family of companies, its 38-year heritage in global trade met with Drayton McLane's 102-year
legacy as one of America's largest and most admired food wholesalers. Since then, the excellent reputations and industry leadership of both
companies has proved a dynamic and powerful combination.
As a third generation entrepreneur and grocery merchant, Mr. McLane took the helm of his family's then 84-year old grocery wholesaling
business as President and CEO in 1978. Founded by his grandfather, Robert McLane in 1894 in Cameron, Texas, McLane Company had
reached $176 million in sales when Drayton's father, Drayton Sr., "passed the torch" of leadership and vision to his son, although he remained
active in the business well past his 90th birthday.
From the mid-1960's to the mid 1990's, Drayton's inimitable "hands on" style, technological innovation, "trademark" cheerfulness and driving
leadership propelled the McLane Company to over $7 billion in sales, at a compound growth rate of 30% per year. The McLane system
became the only food wholesaler in America to offer full service distribution in all fifty states, as well as a half-dozen foreign countries.
In 1991, Mr. McLane and his "family" of shareholders ceded to the long and increasingly attractive overtures by family friend and American
business icon Sam Walton, and McLane Company was purchased by Wal-Mart Stores, the world's largest retail company. Soon thereafter,
ile remaining a Vice-Chairman of Wal-Mart and Chairman of McLane Company, Drayton formed the McLane Group with a long-loyal
and dynamic team of senior executivesllowing the Group's acquisition of the Houston Astros Baseball Club and a thirty-year master lease
on the Houston Astrodome, other companies were added in rapid succession with focus on international expansion.
While McLane International, operating in the United Kingdom, Spain, and Portugal was repurchased from Wal-Mart Stores, San-Francisco
based M-C International was acquired, Classic Foods of Dallas was formed, along with M-Group Systems and McLane Logistics.
Drayton's long-held vision for totally integrated, global data and logistics services, broadline exporting and full-service food distribution is
rapidly taking shape. McLane Group's total commitment to its century-old code of "honesty, integrity and high business principles" continues to
serve customers, suppliers, employees, and partners successfully and without compromise, worldwide. According to Ron Messner, President
and Chief Executive Officer of M-C International, "Creativity, persistence, quality of workmanship and service levels that consistently exceed
the expectations of our customers will remain the building blocks of McLane Group for the next one hundred years."
* * * *
here is the reuters news release.
biz.yahoo.com
Thursday November 4, 8:50 pm Eastern Time
Ex-Wal-Mart exec to invest in online grocer Peapod
CHICAGO, Nov 4 (Reuters) - Online grocer Peapod Inc. (NasdaqNM:PPOD - news) said Thursday it named former Wal-Mart Stores Inc.
(NYSE:WMT - news) vice-chairman Drayton McLane a director, and said McLane would make a "significant personal investment' in
Peapod.
Peapod also said it formed a strategic partnership with McLane's firm, McLane Group L.P., which provides distribution and logistics services
and technology for food companies. Peapod said it would use distribution-management systems McLane has implemented at top food
companies.
Shares in Peapod surged more than 40 percent on the news. In afternoon trading on Nasdaq, the stock was up 4-3/16 at 14-3/4, close to a
52-week high of 15-11/16.
McLane, who is also the owner of the Houston Astros baseball team, becomes the ninth member of Peopod's board of directors, effective
immediately. The amount of his investment in Peapod was not disclosed.
"I can clearly see that Peapod is a company that will continue to lead the Internet grocery revolution,' McLane said in a statement. "That's
why I'm making investments of my time, money and energy in an Internet company for the first time. I plan to reach back into my 40 years of
experience in the grocery distribution industry to assist Peapod in developing the best e-commerce food-distribution system in the U.S. and
continue to lead the industry in customer service.'
McLane served 27 years as president and chief executive officer of the McLane Co., a wholesale grocery distribution firm his grandfather
started in 1903. Wal-Mart bought the company in 1990. McLane continued to run the business and served as Wal-Mart's vice chairman and
a member of Wal-Mart's board of directors until 1995.
"Getting Drayton McLane on the Peapod team is a huge strategic advantage for us,' Bill Malloy, Peapod's president and chief executive
officer, said in the statement. "Drayton is the foremost authority on food distribution and logistics, while Peapod is better than
anybody in the Internet grocery business at building solid, enduring relationships with customers. This one-of-a-kind combination
will continue to make us the best in the Internet industry in customer service.' |
