Tuesday, 8 May 2007

Taste Holdings

Taste Holdings - Very good results combined with a recent cautionary can result in quite a bit of corporate action in this sector. If you look at cultures abroad (UK and USA) and the growth in the fast/easy food culture, combined in the rise in the black middle class it appears as if their might be quite a boom in this industry going forward (I just hope that they can add a more healthy option to their menu). Based on the recent cautionary I am of the opinion that they probably looking into buying something (chicken/fish) opposed to being bought but you never know - perhaps Famous Brands is feeling the heat with Maxi's competing with Wimpy, doubtfull whether the competition act would allow any "fast" marriages. With a current share price of 140c and EPS of 7.2cps it gives a historic P/E ratio of 20 which is a bit expensive to my liking but if you consider the agressive growth forecasts and what seems to be quite an efficient business model it does appear as if it won't impossible for them to grow there EPS at more than 40% per circa. I will definitely be watching this one.

Wednesday, 2 May 2007

This blog is not yet fully operational, watch this space