I'm quite a competitive person, me...
So to follow on from Tom's Sleuth email yesterday I'd also like to disclose an IPO with great potential, to whet your appetite for the New Year!
Good old IPOs are a particularly favourite subject of mine and that's why I'm so excited to tell you about another one on my watch list!
Not only that, it appears to be getting off to a great start.
Now, you must also bear in mind the time of year these guys (I'll tell who they are in a second) have chosen to float – coinciding with the infamous ‘Santa’ rally, which I spoke to you about at the end of October.
But just to jog your memory...
Since 1935, the market has risen in December a staggering 80% of the time. The exact reason why is none too clear. It could possibly be due to tax reasons, or perhaps the general frivolity surrounding the “big day”. But I don’t think this is the reason for the interest in this particular company, but it all helps.
So it’s time to fill your boots with some exciting stocks, and wait to see what 2007 brings…
On with the story!
Polymer Logistics raised £17m on their AIM debut on 13 December, floating at 82p – not quite as spectacular as West Pioneer (see yesterday's Sleuth if you've already forgotten!) just yet – but an interesting story all the same, and with good potential.
They're providers of reusable plastics and packaging to retailers and suppliers.
Now they already have deals in place with a number of blue-chip clients such as Tesco, Asda, Sainsbury’s, Coca-Cola, Danone Waters, Carlsberg and Coors Brewers, to name but a few.
Chief Executive Gideon Feiner said, "The IPO will help us continue along our growth path, giving us the capital we need to fund recently signed contracts in Europe and the USA."
The company says its environmentally friendly packaging comes “display ready” direct from the lorry.
They make containers for products such as drinks, that stack safely when full, and fold flat once they are empty.
Throughout my time as a City dealer I have always found that the simple ideas are always the most effective. And this is definitely the case here. Why else would these blue-chip companies be using Polymer!
Polymer are able to benefit retailers by reducing supply chain costs, cutting retail losses from damage and wastage, thereby increasing the in-store availability of the products stocked.
This could spell the end for dented tins and cans – which are often pushed aside, and sold at reduced prices. Consumers simply don’t want to buy damaged goods.
This stock looks very interesting and I'll be keeping an eye on this one throughout the New Year.
As Tom said yesterday, we won't be in touch tomorrow, so have a fantastic New Year and I'll look forward to getting straight back to business next Wednesday when we'll resume full swing into 2007.
Happy New Year!
Best regards,
Melissa Carroll
for The Penny Sleuth
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