I wouldn't make the decision based on what's going on in one little country. DEO is worldwide. They sell products in 180 different countries. Take one down, spin it around, 179 countries left on the wall.
This bank is becoming the perfect candidate for Sokol to come in and work his managerial magic. I doubt there will be a change in management, though, since I understand there is a family connection between Shook and Sokol. Seems more likely that when the weather gets cold in Wyoming he would be tempted to spend a few months in VA cleaning up the mess. If there is anybody who can do it, it would be Sokol.
I checked in on the stock price today, and almost fell out of my chair! Congratulations, between WVVI and TSLA you should be quite a wealthy man. I guess they don't call you networth for nothing.
I agree VFC is a cash generating machine, but they're too large to be "gobbled up". In fact it's the other way around - they are the ones who do the gobbling.
This report is extremely misleading. The only countries where "area under vines" decreased is Spain, France, and Italy. The decrease was expected due to crop loss from high temperatures and drought last summer in Europe. They will replant and area under vines will go back to normal. Further, this is not material to WVVI, because they do not sell their wine in Europe.
The only inane argument is the wine shortage article you referenced. I pointed out that WVVI does not sell in the areas that currently have shortages. Also, if you think I have multiple "aliases" you are free to report them. Unless there is a possibility that not everyone who disagrees with you is the same person?
If you think it's a good long term "buy and hold" stock, why complain about the drop in price? Just buy more. That's what stocks do - they go up and down for no good reason.
Thanks for the advice. I'm not worried at all about the long term nature of the security portfolio - that's what banks do. They take deposits and invest them in higher yielding long term investments. Also the great thing about troubled loans is they don't have to be sold immediately. They can be held until it is smart to sell them. MBRG has a solid enough balance sheet to wait 3-5 years or longer if they have to on those loans.
I have actually reduced my ownership, but it wasn't for any of the reasons you give. I think the valuation right now is on the really high side. Some other regional banks in the area (SONA, FBSS, BHRB) are selling at much more attractive valuations. But I could easily be wrong. MBRG is sitting in a uniquely lucrative spot and could easily grow enough to justify the current price, as expansion of the DC metro area goes into Loudoun County. I am hoping the price comes back down so I can buy again.
I hope you followed my advice and bought more when it was down. You'd be rewarded with a higher share price and a higher dividend.
Looks like they've been aggressively cutting down on the non-performing assets (down to 2.51% of total assets), but revenue, net income, and deposits are all decreasing. Most alarming is an 11.93% decrease in revenue over last year's Q3. I think both revenues and deposits have been decreasing for a few quarters now. Yet the stock price keeps going up??
Don't they owe something like $152 million to Leucadia, or did they pay that off recently? The 10-K shows book value at $1.06/share.
They're usually late, but they always release it eventually. I'd rather them spending money on product improvement rather than on accountants.
I agree it seems high, but in May and June, Sokol purchased roughly a million dollars worth of shares, near the current price in the $18 dollar range. I think he is setting the bar on valuation. A couple other insiders have also purchased in the 19's and 20's.
I was completely floored when I saw these guys trading in the 6's. I've said before this stock is overpriced. Pinot Noir has been trendy but over-planted due to the Sideways effect, so we are seeing intense competition among too many wineries that focus on Pinot. A fair value is probably around $2.50 to $3.00.