Foster’s keen on wine turn

At the end of January 2007 Foster’s shares traded at AUD 6.67. That was significantly above the analyst’s average target price of AUD 6.54. Analysts agree that the company has experienced hard times in the wine industry since its AUD 3.2 billion takeover of Southcorp in 2005. Although wine now represents 60 percent of Foster’s assets it produces only 40 percent of the profit and the market is asking when the long-awaited turn-around is going to occur. Now what’s new about that? Haven’t they been waiting for a turn-around for years? Gentleman, let us tell you, you may be in for a long wait.