Country Bumpkin's move to the Main List coincides with the first, but certainly not the last, stock market mania of the 21st Century.
Hype surrounding internet stocks reaches fever pitch. Incubator funds float and soar twenty-fold on their first day of trading. A press release in any quoted company with a hint of dot.com went into orbit.
It was Country Bumpkin's good fortune to be caught up in this frenzy.
The company's PR advisers embraced the opportunity. E-Bumpkins was, they said, the ultimate B2C business:
"It sells small packets of seeds that cost nothing to post."
the shares jumped 10p"It's got the fulfilment expertise in place."
the shares jumped 20p"Everyone trusts the Bumpkins brand name."
the shares jumped 30p"It's got first mover advantage."
the shares jumped 40p"They've signed a major celebrity as a frontman."
the shares jumped 80p"The Japanese love English gardens."
the shares jumped 160pIn March 2000, Country Bumpkins' share price hits a high of £35. This values the company at £600 million, and, even though the high is shortlived, it is enough to propel the company into the ranks of the FTSE 250. Old economy stocks making real profits but without a dot.com halo, are shunted out of the index.
FTSE 250 status means that those tracker funds that track that particular index are obliged to buy CB shares.
There is deep unease in the financial press, which questions the wisdom of being invested in a tracker fund which has to buy new economy stocks which, on any normal criteria, are massively overvalued and has to sell old economy stocks which, on any normal criteria, are massively undervalued.
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