Fever-Tree Drinks

[Will!]

I missed out on the IPO for Fever-Tree. I have them on my watch list for if/when there's a market crash. I like a G&T as much as the next person and I realise there's potential for overseas growth but they have a P/E ratio of 63 and I just cannot see how that is justified. Does anyone have any insight or are they just bubbly?

[RDW]

Spooooky

My office looks onto the back of the Acolade wine warehouse in Avonmouth, I saw a Fever tree wagon driving round the site about half an hour ago, then ....

I was looking at diversifying my pension portfolio, one fund that caught my eye was the BlackRock DC alpha smaller companies, the largest investment in the fund is with Fever tree

Then this

No idea if they're a good bet or not btw

[One-percent]

Bl**dy expensive for tonic water, something like 1.50 or 1.75 a bottle and also smaller in size that 'ordinary' tonic water. Makes the cost of a g&t prohibitory expensive. Feeling flush the other week I thought I would try it and could not tell the difference between this and the cheaper stuff. Now, the Adnams gin, that is worth the extra few quid. Can't see fever tree being around for long

[Arpeggio]

It would be too late for me. I'm generally apprehensive of investing in individual companies as opposed to managed funds (unless its something big like General Electric) because a managed fund is flexible to move its money around between winners and losers. You can also check the fund managers track record (wiggly line on chart) against a benchmark (wiggly line on chart).

[choochoo]

Note that BA will stop offering fevertree tonic on it's flights in January as part of it's removal of free food and drink on short haul flights, that must put a dent in it's sales.

[Just_Do_It]

It wouldn't seem so:

http://www.telegraph.co.uk/investing/shares/five-stocks-tipped-next-fever-tree1/amp/

 

[Errol]

Fever-Tree lemonade is really nice. Top stuff. I recommend it highly.

[Habeas Domus]

It's a neat example of limited supply causing volatility in price.

Fever-Tree is still relatively small compared to the number of people who want to buy it's shares, so you get a boom & bust volatile stock.

If we want to fix the volatility in the housing market then we need to fix the limited supply - forget building a paltry extra 50,000 houses, the UK needs a MAJOR reform of planning laws and then the market will be able to sort itself out.

[Will!]

I'm beginning to wonder whether part of what's driving FEVR's sky-high p/e ratio of 104 is the fact that it is relatively ungeared.  Its gross gearing ratio is only 24%, which compares well with another share I recently sold from my portfolio, Inmarsat, which has a gross gearing of 74% and whose share price is falling despite recently announcing some good numbers.