** John Menzies (JM), which splits its effortsbetween the disparate areas of news distribution & aviationservices, is a small cap "full of value", says Premier AM's headof UK equities Chris White
** Dwindling demand hurt growth at news distribution, butWhite likes fact business generates lot of cash to invest inaviation services - where problems caused profit warning Nov(stock c.14 pct below pre-warning level)
** JM could mitigate news distribution's decline throughcost savings & deal like competitor Connect has with Amazon for 'click & collect' delivery, he says
** White says essentially what co has to do in aviation armis get more embedded with existing customers (says JM Aviationwas spread too thinly over many countries)
** He flags co is getting more involved in US whereoutsourcing process has gathered momentum & has opportunity toget a good market position with airlines
** Activist shareholder Lakestreet Capital Partners (3 pctstake) called for change, believes co "dramatically undervalued"& queries logic of operating in 2 unrelated sectors; has supportof top shareholder Kabouter (c.9 pct stake)
** White welcomes fact they are shaking up JM (though doesnot necessarily disagree with shape of business)
** JM up 1.9 pct, adding to Friday's 3 pct gain afterin-line update (RM: tricia.wright1.thomsonreuters.com@reuters.net)
