Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: Graham Dellaire who wrote (1148)	2/9/1999 2:58:00 PM
From: CIMA	Respond to of 2453

It appears as though AGORA agrees with you: Good afternoon to you all. Please find enclosed our updates with respect to the following: YOGEN FRUZ On Friday, February 5, we announced our intention to acquire a trading position in Yogen Fruz (YFa.TSE) in between a range of $2.75 and $2.90. Though many investors were successful in making such an acquisition, the trading volume and the amount of time in our target range was not adequate for the purposes of officially recording this acquisition in The AGORA Portfolio. As such, congratulations to all who were able to act quickly and acquire YF.A but we will not be able to officially record this position. Secondly, despite the recent drop in price due to weak earnings, AGORA continues to remain very confident in the future prospects of Yogen Fruz for the following reasons: 1] YF announced record revenues for the first quarter of fiscal 1999, which ended November 30, 1998. Revenues in the first quarter more than doubled to $22,799,000. 2] The Company's results were adversely impacted by the cost of butterfat, which during the quarter ended November 30, 1998, reached all time high price levels. Butterfat accounts for anywhere between 10-18% of costs in YF products, thus resulting in a big cut to the bottom line. Our experience with commodities indicates these things are bound to happen occasionally but rarely sustain themselves for very long. In fact, the price of butterfat has significantly dropped since November of 1998. As such, all other things being equal, we expect YF earnings to return to more normal levels next quarter. 3] Our research indicates that sales of frozen novelty products (popsicles, creamsicles etc.) are at their slowest for the two quarters September-November & December-February. As such, we expect to see a significant jump in current record revenues during the March-October time frame, which should also strengthen earnings. 4] The Company reported cash holdings and short-term investments of over $41,000,000 for the period ended November 30, 1998. This makes for an exceptionally powerful balance sheet and gives the company the ability to weather any slow periods, thus reducing investment risk. 5] Despite a 40% drop in revenues from franchise fees, largely due to fewer master franchising agreements, the Company was recently named by Entrepreneur magazine to the Number One position in the 20th Annual Franchise 500 ranking of top North American franchises. Yogen Früz was ranked ahead of McDonald's, Subway's and Wendy's, which finished 2nd, 3rd and 4th respectively. In addition, Yogen Früz also finished first in the magazine's ranking of the fastest growing franchises in North America and first in the frozen yogurt category. We would expect such an endorsement to add a boost to franchise sales and master franchise agreements as the company enters it's busy season. CONCLUSION Though no company can claim perfection, a look at the strength of YF's balance sheet, revenues and brand name recognition (including Tropicana and others) leads us to believe Yogen Fruz is very undervalued at these levels. As long as revenues continue to increase and cash stays healthy, this company should easily return to it's tradition of record earnings.

To: Graham Dellaire who wrote (1148)	2/10/1999 11:28:00 PM
From: CIMA	Read Replies (1) \| Respond to of 2453

AGORA buying again: After a failed attempt to acquire Yogen Fruz (YF.A - TSE) last week, we are once again making an attempt at current levels. You have all received our recent comments regarding Yogen Fruz, as such, it should come as no surprise that we believe current levels represent excellent short-term and long-term potential. YF closed at 3.00 today on volume of 261,700. More importantly, there were a total of 331 trades made today, which equates to: - average volume per trade of 790 shares - average value per trade of $2,448.50 (using an avg. price of $3.15) >From these figures, we can conclude the majority of trading is calling from smaller investors who are not willing/able to hold onto YF at these levels. Given our confidence in this company, AGORA intends to acquire a core and trading position over the next two days and we are setting a range of $2.80 - $3.10.