DGL

[ericlin10]

It was down 5 percent in the noon with out any news I wonder what happen to it

[winner69]

quote:Originally posted by ericlin10

It was down 5 percent in the noon with out any news I wonder what happen to it

down because the punter with 50,000 to sell had to accept 225 to get rid of them .... the cost of low liquidity in a stock .... not saying he was desperate to sell

[Lawso]

I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.

[COLIN]

Why the sudden 9% upwards leap today, on relatively good volume (number of trades, and value) for a normally thinly traded stock such as this, and on the present cautious market?
Perhaps the market expects an increase in wine consumption as people try and drown their sorrows following Allan Bollard's determined attempt to deflate house prices!!!

[COLIN]

Obviously none of you take much of an interest in this stock, and I appear to have been talking to myself, but at least the NZX was sufficiently alerted to raise a formal enquiry and got an answer - i.e. a good harvest predicted and also a JB Were positive report.
What does surprise me in these situations is that so many holders then see fit to dump their shares!

[Zaphod]

quote:Originally posted by Lawso

I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.

I unfortunately was not able to attend the AGM and subsequently sample the wine, but I can tell you that we were also offered heavily discounted product late last year of which I heartily partook.

The company has certainly performed well thus far, meeting (actually, exceeding) their last two annual report predictions. With a PE of 29x expectations are high, however I am not sure whether this is typical of Wine industry in general.

I'd be interesting in hearing people's comments on whether they believe that ever increasing water scarcity problems in Australia, may considerably help NZ wine producers.

[Steve]

quote:Originally posted by Zaphod

I'd be interesting in hearing people's comments on whether they believe that ever increasing water scarcity problems in Australia, may considerably help NZ wine producers.

The South Island already has its own water issues when it comes to irrigation. Supply is being constrained by the likes of the RMA while demand is increasing...

[Zaphod]

quote:
The South Island already has its own water issues when it comes to irrigation. Supply is being constrained by the likes of the RMA while demand is increasing...

Yes, we certainly have similar problems in areas in NZ, however we are still (realatively speaking) in a much better position than Australia in that respect. I believe the key to increasing NZ wine sales will be to specifically target higher per-case prices by selling quality product.

[KJ]

quote:Originally posted by Lawso

I'm just getting interested in this stock - and not solely because I heard about the very tasty wine-tasting at the agm recently. (Memories of CIL/Montana in the good old days, when we all walked away with gift bottles in our hands!)
Were any STers at the agm? I'd be interested in anyone's thoughts/comments on DGL as a medium/long term hold. I note the div yield is negligible and the P/E abnormally high.

Lawso-only just noticed this-yes I did go to AGM and thought it an excellent presentation.My original problem with DGL was believing the step in profit in one yr from $4m to $13.8m.

I added as I got more comfortable with this & I think the market now believes this will happen as reflected in the recent SP strength.
Remember that their $13.8m budget used an exchange rate of UK 0.376-its biggest market by far.
Indications are that it could reach NPAT of $15 to $16m for the full year -a PE of 15.Time will tell.

[soltrader]

Any got any thoughts on this wine company?