Fevertree Drinks Share Discussion Threads

[trying2getrichquick] 02/3/2020 09:11

Legendary investor, Nick Train, is now buying into Fevertree -

[trying2getrichquick] 02/3/2020 09:02

Fevertree Cola gets 5 out of 5 in taste test -

[dround87] 02/3/2020 08:28

Came back in this morning with a very small investment. Allocated a third of my cash to a recovery portfolio across 23 shares including fever as an outside but stable growth opportunity with a fair price of 10-12. Will add another third on the way down if it does indeed drop further and the rest on the way back up.

[bargainbob] 01/3/2020 19:48

Looking at sub £8 as an entry point , the risk would be much reduced there.

[montyhedge] 01/3/2020 19:09

But last trading statement, I thought they said growth slowed, so p.e 24 seems very expensive.

[montyhedge] 01/3/2020 10:33

Surprised at him, still expensive with hardly a dividend.

[christh] 29/2/2020 09:20

‘Do nothing’ Train buys Fevertree after 6 year wait



By Gavin Lumsden 28 Feb, 2020


Nick Train, one of the UK’s few remaining star fund managers after the downfall of Neil Woodord, has scooped up a stake in battered tonic maker Fevertree (FEVR) and declared himself uninterested in the stock market turmoil caused by the coronavirus.

Train invested 0.6% of Finsbury Growth & Income Trust (FGT) in Fevertree this month as its share price sank following a profits warning in January caused by disappointing Christmas trading.

The Citywire AA-rated fund manager told shareholders in the £1.7bn investment trust that Fevertree was ‘a classic Lindsell Train idea’, referring to the investment firm he co-founded with Michael Lindsell 20 years ago.

After a meteoric rise from their flotation in late 2014 as Fevertree stole market share from Coca-Cola’s Schweppes, the company’s shares peaked at over £38 in September 2018. Since then they have plunged by two thirds as fears have grown about the company’s US expansion and whether the UK tonics market has lost its fizz.


More than tonic

Train acknowledged the £1.5bn company faced challenges in the short- and medium-term. Asked by an FGT shareholder whether Fevertree was too ‘fashionable’ and vulnerable to changes in consumer taste, Train replied: ‘A brand of global significance has been established. There is an opportunity to grow that brand equity in Europe and the US.’

But he agreed that ‘Fevertree needs to be about more than tonic’ if it was to continue to succeed, pointing to the growth potential in its ginger ale and soda water products in the US.

Train told investors at FGT’s annual general meeting in London’s Guildhall that he and Lindsell had watched Fevertree for years looking for an opportunity to buy.

‘Having kicked ourselves for not buying it seven years ago then to see the collapse in the share price,’ he said they had to act.
Train declined to say what price he had bought Fevertree but said it was ‘notably under £14’. The shares have continued to fall as covid-19 fears have gripped the market, down 3.9% or 51.5p to £12.63 today.

[dround87] 29/2/2020 08:37

Especially in recovery diversification is very important as profit warnings and stuff are going to drag on for at least a year. I've got a list of 24 I want. I think I'll give it until Tuesday at the very least although ftse has been recovering on IG.

[llama1978] 28/2/2020 16:42

Nick Train is a smart man.

[bargainbob] 28/2/2020 16:39

Famed investor Nick Train has added premium soft drinks maker Fever-Tree to his £1.8bn Finsbury Growth & Income trust.

Speaking to investors at the Annual General Meeting, Mr Train said the company was a “classic Lindsell Train idea”, referring to the investment style of his asset management company to buy companies with strong brand power and global reach. In December 2019, he bought Imperial Leather soap-owner PZ Cussons for similar reasons.

[llama1978] 28/2/2020 16:33

Maybe Netflix and just eat will be ok, as everyone stays at home... bear in mind as soon as summer comes this will be gone from the northern hemisphere. Then Australia can have it along with forest fires.

[fuji99] 28/2/2020 15:51

IMO the question is not whether a stock is cheap or expensive anymore. The problem is now global as the world is facing a treat by thi corona virus. The virus is slowing down China economy and by domino effect, the rest of the world. China being the factory of the world will delay everything affecting production of large economies. Adding to that, the bull market was running non-stop for more than 10 years. China was just a trigger for a long correction. Pharmas and P. Metals used to be the best to hold in a bear market but it is not the same anymore. All big pharmas for example get lots of supply from China. China being paralysed at present so we can see the likes of AZN, GSK, HIK etc. slaughtered for some time now. IMO the only sector that is more or less decent to hold is gold/silver because it could become a safe heaven. For the rest, we only see the tip of the iceberg as it'll take 6 to 12 months for profit warnings and downgrades to pile up in the US and each time, the markets will be taking everything with them. So no stock or sector is safe at the moment.

[dround87] 28/2/2020 15:03

In my humble opinion I wouldn't rush into any buying decisions now on any share. Make your list and keep your powder dry for a sunny day.

[llama1978] 28/2/2020 12:08

It’s not expensive at this level at all! Get a grip! The price will double in 12-18 months once the US expansion comes into full force. Great time to buy. If only I had more cash.

[montyhedge] 28/2/2020 11:43

Still very expensive even this level.

[greenelf] 28/2/2020 09:47

Sadly due to market collapse I can now only afford Lidl gin and tonic water. Fevertree is delicious and definitely preferred. Sigh.

[llama1978] 27/2/2020 15:45

By the way I sold half my shares at £15. In hindsight should have sold more as well as the Lindsell train fund but hey ho. Ride it out now.

[llama1978] 27/2/2020 15:44

The reality is people around the world might be going out a bit less in the next couple of months. Some places more than others. Coupled with a global sell of of shares / funds currently this is dragging it down. Nothing to do with it’s US expansion plan for 2021. I’m sure the fever tree management still have global domination at the top of their white board in the board room... just a little set back.

[dround87] 27/2/2020 11:54

Not even on the watchlist but still you take the time to stop by and enlighten us! What a top bloke!

[wetdream] 27/2/2020 11:38

Oh well, a but wide of the mark with my guess at £14 support. :-(
Perhaps £13 will hold.

[hpcg] 27/2/2020 10:30

Despite the poor tape there are institutions buying at this level. Still not short and frankly this isn't really on my watch list now when there are so many other candidates.

[bargainbob] 27/2/2020 10:10

Just after the next profit warning Llama

[llama1978] 27/2/2020 09:08

Companies will make a bit less money this year but it’s not impacting long term prospects. Will pick up in 1-2 months once the virus dies off as the weather warms.