Ann: Breakfast Presentation, page-30

We will probably see some nervous sells today....

DJ Yowie Looks Good, But May Need Cash Topup: Canaccord -- Market Talk

2238 GMT [Dow Jones] Chocolate maker Yowie Group Ltd.'s (YOW.AU) sales push in the U.S. continues to gain traction, cementing Canaccord Genuity's speculative buy call on the stock and 1.80 Australian dollar/share ($1.33/share) price target. Still, the broker fears Yowie could overstretch its balance sheet if it moves too quickly. "We felt the risk that demand could significantly out-strip the working capital capacity of Yowie may be higher than we contemplate in our base case scenario," analyst Chris Northwood says. "If growth exceeds our forecasts, we expect the company will increase its available working capital either via debt, equity or a factoring/working capital facility." Yowie has approximately A$10 million ($7.4 million) in cash, A$11 million of inventory and up to A$5.5 million of cash expected from the conversion of some options. "We encourage it to be prepared in order to capture the opportunity fully," Northwood says. YOW last traded at A$1.22. ([email protected]; @dwinningWSJ)