
CVE:DWS
This summary was created by AI, based on 1 opinions in the last 12 months.
Diamond Estates Wines and Spirits Inc. operates in a challenging industry characterized by tight margins and high taxation. The company's ability to maintain a decent dividend indicates some resilience in a tough market. Nevertheless, there are significant headwinds, including a general decline in alcohol consumption which could impact growth prospects. Experts note that while the firm is fairly well-run, the difficulties associated with interprovincial trade add to its operational challenges. Overall, the stock rarely trades at a premium, which may reflect its stable yet stagnant growth outlook in the current economic environment.
(A Top Pick Sep 10/19, Down 30%) He owns 10% of the company and recently added more on weakness. The stock has been down due to lower restaurant and bar sales, but retail and online sales are booming. He doesn't expect sales to be down that much this year. Cost cutting has widened margins. Lassonde bought 20% of the company last year, which has boosted DWS' sales force. He expects Lassonde to take over the rest of the company at some point, which should boost the stock price. He's in for the long run. Also owns Andrew Peller.
He is not sure the company will stay public. A fruit juice company (LAS.A-T) has a 20% stake and could acquire it in 20-3 years for a much higher price.