I hold this stock and have held it for two long(ish) periods over the last 3 years.
I heard from Evil Knievil (Simon Cawkwell) that he was short on them (due to them being overvalued). At last years investor show that I attended, they (Evil and Tom W) did a blind test on tonics on stage, probably to show that it was all hype. The testers, drawn at random from the audience, voted for drink no. 1 to the tune of about 85%). Yes, you guessed it. Fevertree tonic. It surprised everyone, including me!
I got stopped out last year on a dip, then bought back in again early this year. I hope Evil cashed out at this stage, because if he is still short it will now be very expensive!
My feelings about this stock are similar to my general feelings about the market as a whole. It has kept rising, despite a couple of setbacks that made me think the gains would end/reverse. So I'm cautiously staying with it, but feel that it has to end sometime, but experts thought that 15 months ago.
Certainly not a Value stock, massively overvalued with a PE of 70+ and a PEG of 5, yet it keeps going and achieving targets.
They have just done a deal with an American drinks distributor and if this works, the growth story could be set to continue for a prolonged period, or even ratchet up a notch. This should start to kick in after August (I understand). Obviously it won't double revenue, but could be a handy additional revenue stream.
Could this be a Superstock of the Minervini type? Its listed as a High flyer on Stocko. High Quality, High Momentum, Value is just 1 (not surprising with a PE over 70). If they do well over the pond, who knows? It certainly looks like a stock in a phase 2.
Pondering if I should twist or stick. I may wait to see if their American channel can add value first.
Thoughts anyone?
Just for info. it has also been covered today by Graham in his excellent value report.
