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Just in case you want to check the progress

of that FGL trade, posted earlier in this thread,

before the February low ..... :




happy trading all ... http://www.sharescene.com/html/emoticons/smile.gif







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  • 1 month later...

So little talk about Fosters of late.


I notice that a lot of vineyards e.g. mcGuigans, peter lehamn, etc are all announcing records harvests and crushes.


It will be interesting to see how the FGL price reacts. I know that some brokers have been downgrading on the basis of US wine sales, however, i see only a pick up in economic activity and as a result wine consumption, after all what esle do people spend their money on..LOL


Any pther comments on short term drivers or medium to long term drivers would be most welcome as to me FGL looks like a steady to good play.

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I've been holding for years cos they seemed a good play with good management. To date still waiting. FGL just do not excite the market! http://www.sharescene.com/html/emoticons/sad.gif c > b
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  • 3 months later...
  • 1 month later...

FGL has jumped over $5. Below is the explanation... About time some value was recognised. A positive view is that the tough conditions in the wine industry are tailor made for strong cashed up companies like Fosters to pick up opportunities at low prices... Partly the theory that saw them take on Berringer, but they did that a bit early in the cycle, didn't adjust quick enough with new product to an evolving market ($2 buck chuck) and picked the top of the US$ as the time to buy a US$ asset... If the new management is smart (I think they are) they will make better acquisitions in the coming years... Anyway, here is the article:



MELBOURNE (Dow Jones)--Shares in Australian-based winemakers Foster's Group Ltd.

(FGL.AU) and Southcorp Ltd. (SRP.AU) climbed early Wednesday as analysts reviewed

valuations following takeover news in the key U.S. market overnight.

Rival U.S. company Constellation Brands Inc. (STZ) on Tuesday made a US$1.3 billion

unsolicited buyout offer for Robert Mondavi Inc. (MOND) at a 37% premium to the target's

closing price.

In early local trading, shares in Foster's surged to a three-year high of A$5.17,

while Southcorp jumped to a 16-month high of A$3.62.

Around 0027 GMT, Foster's was up 1.8% at A$5.13, while Southcorp was up 6% at


Goldman Sachs JBWere said in a research note to clients Wednesday that the U.S.

takeover gives Southcorp an implied takeover price target of A$3.90 and Foster's a

A$5.10-A$5.60 price.

While noting the offer will inspire a fresh round of investor enthusiasm for

Australian wine stocks, the broker said a key implication of the Constellation move is a

potential erosion of the competitive position of both Foster's and Southcorp in the U.S.

market over the medium term.


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