
CVE:DWS
This summary was created by AI, based on 1 opinions in the last 12 months.
Diamond Estates Wines and Spirits Inc. (DWS-X) operates in a challenging market characterized by thin profit margins and a complex interprovincial trade environment. Despite being relatively well-managed, the company faces significant headwinds, including changing consumer preferences leading to decreased alcohol consumption. While it offers a decent dividend, the growth prospects appear limited, which raises concerns about its long-term sustainability. The stock does not trade at excessively high valuations, making it an attractive option at its current price point. However, investors should be cautious due to regulatory pressures and market conditions affecting the beverage industry.
(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.