Uk Stock Writeups

C&C Group manufactures Magners, Ireland's leading cider brand, with approximately 80% market share, as well as Tullamore Dew Irish whiskey. With strong brands and marketing capabilities, the company re-created cider as a fashionable drink for people in their 20s and 30s. On the back of its success in Ireland and upon entering the UK market, C&C geared up for massive volume expansion with the UK launch of Magners. Unfortunately this coincided with an unexpectedly wet British summer and an underestimated competitive response from Scottish & Newcastle to C&C's entry into the UK market. The stock price fell by over 40%, leaving it with an expected 5% dividend yield and 10% free cash flow yield. Volumes have now stabilised and cost cuts are expected to improve earnings. As a potential bonus, the company may be an attractive acquisition to one of the major brewers with strong distribution channels, such as SAB Miller or InBev.

Sedol	Type	Price	Date
B011Y09	Buy	EUR 3.98	15/01/2008

Cobham has made three large acquisitions in the last year, significantly increasing its exposure to US defence spending in the growth area of digital battlefield communications subsystems and components. The company is also benefiting from booming government investment in airport and border surveillance systems. Management continues to implement a strategy of divesting non-core assets and building on market-leading positions in niches with high barriers to entry. With only 13% of its revenues derived from the UK, sterling weakness should also provide a tailwind for growth.

Sedol	Type	Price	Date
B07KD36	Buy	£ 2.198	02/05/2008