market should start to react now

This stock has been punished severely by the market, and because of that it seems now to be getting overlooked. Directors have been buying in at low prices, be it directly or through DRP allotments. The aquisition of NZ Co Planet Fun, finalised on 1 Jan 05, (Planet Fun is a private co. with sales around 20M) allows FUNTASTIC to penetrate the NZ market as the no. 1 distributor in the country. Although the stock is currently downtrending, the announcement today of Perpetual Trustees taking a 5% stake could signal a turnaround, they have obviously drilled the management and would be well aware of what is happening inside this Co.

Recent announcements:
20 April 05 - PPT becomes substantial shareholder buying 5% of FUNTASTIC (6,321,382 shares)

Directors buying in:
22 Mar 05 - Director (D Berry) buy 5000 @ 1.86 (holding 183,868 shares)

30 Mar 05 - Director (D Berry) buy 20000 @ 1.71 (holding 203,868 shares)

30 Mar 05 - Director (D Berry) sells 15000 @ 1.72 (holding 188,868)

6 Apr 05 - Director (D Berry) acquires 4784 shares (DRP) holding 193,652

6 Apr 05 - Director (G Tomlinson) acquires 28444 shares (DRP) holding 1,092,220

30 Mar 05 - FUNTASTIC has exclusive rights for toys from King Kong movie, Universal Pictures believe this will be one of the biggest movies ever launched. Product to be released to market 1 Oct 05, acceptance from retailers has been exceptional and shelves will be full of King Kong products leading up to christmas.

30 Mar 05 - FUNTASTIC wins Disney Mousecar Award for outstanding achievement in product development. "this reflects the increased demand for the companies Disney range of products, "we have created over 200 different titles which have been sold into 25 different countries in the world" David Hendy said.

8 Apr 05 - FUNTASTIC scoops 4 out of 9 toy of the year awards. The awards are seen as an important indicator of sales successfor the year. According to MD Mr Hendy "the awards are judged by industry experts well versed in what translates into fantastic toys kids will love, so they are one of the closest predictions of what will actually be leading the charge to toy boxes around the country"

downtrend may not turnaround immediately and will be a mid - long term hold, I bought into FUN after the drop and will be looking to top up soon. just hoping I can pick the bottom or close to

My opinions only, would like to know what others think

Mr J