
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 environment characterized by thin profit margins and substantial taxation, which presents ongoing hurdles for the company. The review highlights the difficulty of interprovincial trade as an additional complication affecting business operations. Despite these concerns, the company manages to maintain a decent dividend yield, indicating some level of shareholder return amidst industry pressures. The general sentiment expresses that the stock has historically not traded at excessively high valuations, although the absence of growth opportunities remains a significant concern. Additionally, a cultural shift towards reduced alcohol consumption presents a long-term headwind for the company, potentially impacting future performance.
(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.