Ann: MCP Announces Completion of Equity Raising , page-9

re: Ann: MCP Announces Completion of Equity R... Thanks for your thoughts John and to expand on my concerns by responding to your comments.

I don't view the purchase of the appliance business as a "bot on" acquisition as any of the normal synergies to qualify as same are absent, viz. an entirely different supply and distribution chain. The only synergies will come from the merging of some Head Office functions.

This view then follows on to the cross selling synergies you mention. Cross selling is very much over-rated and aside from that I do not see any chance of cross selling taking place as by-and-large the outlets of their new cooking appliances and their existing flatware and utensils are very much different. For example, their flatware is sold in places such as David Jones, Spotlight etc. Appliances will be distributed through the likes of Harvey Norman and similar electrical appliance retailers.

At the lower end price range of kitchen appliances there is virtually no brand loyalty, and price is king. With the flood of Chinese imports this marker sector is extremely competitive and again, I question whether MCP has the background experience to compete in this new arena.

I sincerely hope I am wrong but I do think they have ventured a little too far from their proven business track record of products, into a area which is at best a 50/50 punt on success.

Alas, I have seen it all before!!