Ann: Half Yearly Report and Accounts, page-25

Hi, I am a first time forum respondent. A lot of positive & negative views. I come from the food industry, and have a modest knowledge of what ultimately drives a share price (although based on what I've read, it's highly subjective!)

Either way, I brought in on Thursday just prior to announcement. Why? General thoughts are that these guys are on a winning formula. The SP is right down, and yet I see nothing that is overly concerning. Here are some key observations (from an industry point of view...):

1. Rovio entertainment would not have signed up to a backyard operator - there is too much exposure for Rovio! The license will take this unknown brand into the known psyche of a lot of US consumers.
2. The upscaling to the new manufacturing facilities was a no brainer - these guys are planning for the future not the current.
3. I understand the desire to sign up more accounts, but if the figures are to be believed (top 10 check out line in Walmart) then they have to ensure 100% service levels. I bet they're not even supplying at 50%.
4. Management not communicating??? Ah ha, you're suspicions are correct - if you could see behind the scenes you would have bailed out 2 years ago. The food manufacturing & supply chain business is not for the faint hearted...not even Mars or Nestle!
5. Growing pains - they're playing the long game....as fast as they can! 1000% ain't bad.
6. They could have pulled the Australian ranging card ages ago. Coles & WW are falling at their feet to range - they are sticking firm to the US strategy.
7. 7 Eleven probably have them only as a fringe range offer due to unreliable supply. Once they can assure 100% ranging & availability, the game will change dramatically.

Best wishes to all..."the smallest fish are the sweetest!"