Topic: How To Invest

Q: Pat: What is your view on this wine stock? Thanks.

Article Excerpt

A: Diamond Estates Wines & Spirits, $0.30, symbol DWS on the Toronto Venture Exchange (Shares outstanding: 140.4 million; Market cap: $42.9 million; www.lakeviewwineco.com), produces, markets, and distributes wine and alcohol products. The company operates two wineries in the Niagara region of Ontario (where it’s also based) and one in Toronto. Diamond Estates produces both VQA and blended wines under brand names such as 20 Bees, EastDell, Lakeview Cellars, FRESH, Dan Aykroyd, and Seasons. Through its Kirkwood Diamond Canada (KDC) business, the company also acts as the sales agent for a portfolio of international wines and spirits. The sale of its own labels accounts for 53% of revenue, its agency unit contributes 47%. The company’s overall revenue fell 12.0%, from $23.4 million in 2013 (fiscal years end March 31) to $20.6 million in 2014. It then recovered to $24.3 million in 2015 and $29.2 million in 2016. Powered by a 31.7% increase in revenue for its winery business, revenue grew a further 17.5%,…