QUOTE(chyaw @ Feb 19 2009, 09:18 AM)
I'm surprised that F&N only drop 10%. I thought it will hit lower limit in the morning...
Added on February 19, 2009, 9:18 amConnection normal.
The news come out now, but the effect won't be felt during this financial year but the next financial year end 2010. So if people continue to sell now they have neglected the profits made by F&N prior using the Coca Cola brand.Added on February 19, 2009, 9:18 amConnection normal.
I believe the share price of F&N will depreciate over a long span of time, the closer to the termination date the more severe the price will drop. For the time being it looks like its bothering on oversold.
As for future concerns...
1. Who will be the lucky one to pick up Cola's distributorship? (normally target price will appreciate significantly not to mention cola actually contributed 35% of F&N's profits)
2. Or... worse case scenario Cola will be moving in to Malaysia and setting up their own facility controling distribution and manufacturing. (this is a more likely prospect)
Feb 19 2009, 09:32 AM

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