Herald Sun

Wednesday, August 24, 2011 Page : 36 Section : Edition : Region : Vic Metropolitan

Page : 1 of 2 Circulation : 514,000 Area Of Clip : 303.23 sqcm Clip ID :: 0000001 Clip ID 2398322

BUSINESS DAILY

with John Beveridge with John Beveridge

IN THE BLACK
join because they get to keep more margin, said Dean, who pitched Cracka at the mid-priced online wine market between Graysonline and Langtons. With wineries squeezed between the wine glut and the retail power of Coles and Woolworths, the online sales channel is a way for them to get back some control over their marketing and brand. Such success doesnt come easily or everyone would do it, with the company website offering extensive wine reviews and information, cellar door sales, a falling price auction system and fast delivery through Australia Post. Australians love sport so you have to make buying like a sport, explained founding chairman and former chief operating officer of carsales.com, Shane Pettiona. If you can buy some wine cheaper than the next person or race the clock and still get what you want, it adds excitement to the transaction. From Crackas perspective, the great thing about its business model is that revenue can multiply many times without having an impact on costs the crucial advantage online retailers have over their bricks and mortar cousins. The other big advantage is the open pricing model which is difficult for the Dan Murphys of the world to copy if they want to retain differential pricing across various outlets. Unfortunately it is too early to invest in the fastgrowing Cracka other than as a purchaser but the recent profit numbers out of carsales.com painted a similarly attractive but much more mature online business that should thrive in a tough or booming retail environment, earning a buy call. been vindicated by a big corporate move yesterday. The Melbourne-based minnow is set to get a handy $20 million by selling the companys Australian uranium assets to a major Chinese investor following an independent valuation of the projects. A non-refundable deposit of $500,000 is already in the bank and the remainder should arrive within 90 days if the due diligence and approval from shareholders and regulators is all forthcoming. While Uranexs Thatcher Soak, Bremer Basin and Alligator Rivers projects are all desirable, the main game for Uranex is in Tanzania where its Mkuju project has huge potential. With around 69km of strike, uranium anomalies in five different areas and stellar drilling results, the extra cash should allow Uranex to speed up the task of getting some reserves on the books and some scoping and feasability studies

Wine online finds success with buyers and sellers

F you want the ultimate challenge, it would be to sell a product that is in chronic oversupply in the softest discretionary retail market for many years. Which is why Cracka Wines achievement of averaging 20 per cent growth month on month since the start of 2011 with virtually no marketing is an amazing effort. Turnover is on track to reach around $20 million this financial year and a sharemarket float is on the horizon. According to managing director Dean Taylor, the secret is to be friends to both customers and wineries by sharing the benefit of the lower margins that can be charged online between them. We have had hundreds of consumers who have gone to the trouble of thanking us for our service and the wineries are really keen to

UR early speculative buy call on uranium explorer Uranex has

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Herald Sun
Wednesday, August 24, 2011 Page : 36 Section : Edition : Region : Vic Metropolitan

Page : 2 of 2 Circulation : 514,000 Area Of Clip : 303.23 sqcm Clip ID :: 0000001 Clip ID 2398322

completed. The other nice things to note about Mkuju is the sandstone style of uranium mineralisation which helps to cut extraction costs through either open-pit mining or in-situ leach. Even without the Australian assets, Uranex is not a one-trick pony with the Songea thermal coal project in Tanzanias Ruhuhu coal basin adding another source of future cashflow should the postFukushima recovery of uranium prices be slower than expected. The Herald Sun accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser.

$5.30 0 5.10 4.80 4.50 4.20

CARSALES.COM

80 80c 60 40 20

URANEX

Aug 2010 g

Aug 2011 g

Aug 2010

Aug 2011

HIGH LOW

$5.31 $4.19

HIGH LOW

81.5c 14.5c

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