
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.
They made an acquisition about a month ago. It was in BC and is a long term investment. They want to start a vineyard there. They can double the capacity of their retail store there. Their business might accelerate under Ford now. They expanded their plant capacity with imports. They have been treading water recently but recent crops have been good. Now is a good time to get in. He owns 9,9% of the company.
This is one of two publicly traded wine companies in Canada. He has seen the success of Andrew Peller (ADW’A-T) and wants to be in the business. He has accumulated over 9.9% of the company. Diamond Estates is growing faster than the industry. It has the biggest market share in Ontario. This is a small company, growing hugely. They are sold out of exports, have new management in place. This is one of the biggest no-brainers he can invest in. (Analysts’ price target is 0.40$)
The only other publicly traded company other than ADW.A-T in wine. Legislation in Ontario allows wine to be sold in grocery stores. This is going to grow significantly. But DWS-X also sells most of their production to a Chinese exporter. It has higher growth potential than Brick Brewing (BRB-T). (Analysts’ target: $0.40).
(A Top Pick Dec 11/17, Down 29%) China had a bit too much inventory on hand. There was a poor crop about two or three years ago. Many Ontario companies had to de-list from the LCBO and it takes time to get re-listed, but they now have a number of products back on the shelves. Their sales in the grocery channel in Ontario – they have the leading market share. He expects 2019 to very, very strong. They are diversifying geographically.