Valuations:

IRR:
Price and liquidity
PE bands
Precedent Transactions
Growth Strategy
Downside Protection
Option Value :
Management Team Bios:

TGBL has spent more on developing the

international tea business and emerging segments
than incremental revenues from this segment. If this
expenditure tapers, growth for F15 & F16 could be
strong (>20% YoY), driving solid stock performance
from current levels. However, we think this would
impact TGBLs long-term brand strength and market
competitiveness in international markets

TGBL has successfully improved business in its

Australian division, driven in large part by what we
view as good-quality management, a consistent
strategy, solid execution, and rapid growth in the
specialty tea segment. In addition, TGBL has
renewed its focus on the UK, Canada, and other
European markets with increased advertising
spending and promotions. If TGBLs management is

successful in implementing strategies to replicate its

performance in Australia, there may be a case for
better operational and earnings performance.