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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 market characterized by thin margins and heavy taxation. Experts note that while the company is fairly well managed, it faces significant headwinds due to changing consumer habits, particularly the trend of reduced alcohol consumption. There is a consensus that growth opportunities are limited, which may impact its future performance. However, the company does offer a decent dividend and typically does not trade at expensive valuations. Consequently, despite the operational challenges it faces in interprovincial trade, it remains a steady player in its industry with moderate expectations.
(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.