Positive earnings, even if they are reduced, is extremely good in this industry. Wineries are a little like farms, where positive earnings means they are earning so much money they couldn't think of anything more to expense/write-off for tax reasons. That's why you see farmers always breaking even, yet they have millions of dollars worth of John Deere tractors sitting in the shed. They are using tax write-offs to reduce paper earnings. The hospitality center is an excellent example. I can only imagine how much of shareholders earnings went directly into that.
Not much to brag about to be the 32nd best regional wine according to the Seattle Times. I looked for WVVI wines in the Spectator top 100 magazine this month, but sadly they were not there.
Tsachy Mishal has done a good analysis on CWGL's value. At the low end, the land is worth $10-13/share. But ... they won't be selling any land anytime soon, and the profits are minor, and no dividend.
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.
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.
They're usually late, but they always release it eventually. I'd rather them spending money on product improvement rather than on accountants.
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.
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?
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.
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.
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??