Just over a month ago, James Dunn singled out Yowie Group (YOW) in his article 7 stocks under 70 cents, and a week after that, Julie Lee from Bell Direct named the same company as one of her ‘likes’ in our very first Super Stock Selectors.
She said: “Who doesn’t love chocolate with little animals inside.”
We hope you’ve been following our Super Stock Selectors because if you haven’t, you really should. Each week we’ve been asking market experts to name a company they like, and one they don’t and if they have time they often share the reasons behind their thinking as well.
Julie Lee liked Yowie, not just because of its sweetness, but also because the chocolates are about to be distributed in the US where they have massive potential.
Yowie’s chief competitor – Ferrero Group which sells Kinder Surprise – cannot be sold in the US because of the choking hazard involved in small toys in confectionary.
Yowie has been able to get around that ban, largely because it has created a special capsule for its toy, which has been granted the only patent for a chocolate-encased toy by the US Food and Drug Association.
Why am I talking about Yowie again? Well, it is up almost 20% since we mentioned it on 23 March when it was trading at 60 cents. It’s now at 72 cents and wouldn’t make our 7 stocks under 70 cents list today!
Yowie Group (YOW)
Source: Yahoo!7 Finance, 30 April 2015
Yowie doesn’t pay a dividend but good things are expected from the distribution arrangement in the US so it is definitely one to watch.
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