Day Trading May 19 - Morning, page-321

Look at this co. I just discovered..nice chart!!

Primary Opinion (POP) 4.5c
What’s cooking here?
Now little more than a shell, the Jeff Kennett-backed Primary Opinion is to house 48 per cent of the Barossa Valley-based Maggie Beer Products, with the kitchen maven and her hubbie Colin continuing to hold the remainder.
Primary Opinion started out as a dotcom era thingummy and then morphed into a subscription-based platform for lawyers to spout their learned views.
In the words of Monty Python: now for something completely different.
Maggie Beer produces foods including pastes, pates, ice creams and soups, either through its own facilities or contract manufacturers.
The deal involves issuing $15 million of scrip to the Beers, accompanied by a $25m raising at “no more than” 5c a share.
“It is anticipated that as a result of this transaction, Maggie Beer Products will have approximately $10m in gross proceeds to deploy over time to grow and expand its business.’’
In an exclusive interview with colleague Damon Kitney last July, Maggie Beer outlined plans to expand via a greenfields kitchen on an acquired property adjacent to her Tanunda HQ.
“As a business we have so much more potential and if we didn’t bring in investment, we couldn’t do this greenfields site,’’ she said.
The Beers are expected to hold board positions.
While far from its past remits, food is an obvious target for Primary Opinion given the interest in recently-listed plays including Bellamy’s, Costa Group and the now-troubled Murray Goulburn.
Shares in old timer Capilano Honey have more than doubled over the last year and the gains look like sticking.
Eyeing an unspecified new line of business, Primary Opinion recently raised 1.3m at 3c apiece in a placement. Erstwhile Victorian Premier Jeff did not participate, thus reducing his stake from 9.27 per cent to 7.65 per cent.
Having invested a seven figure sum in 2014 and having stuck with the company since its days as doomed digital play Jumbuck, Jeff’s reticence is understandable.
We await the details of the raising to see whether Maggie Beer’s revenue and earnings are commensurate with the high profile of the brand.
Unlike Maggie’s crockpot, Primary Opinion shares were off the boil today, losing half a cent or 10 per cent.
The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not own any of the stocks mentioned.