DGL

[Biscuit]

A very different story. Last 5 years HLG v DGL shows HLG has outperformed and the chart attached excludes dividends and we know HLG have consistently paid twice annual massive fully imputed dividends so overall inclusive of dividends HLG has absolutly thrashed DGL.

Yes, HLG very cyclical and have outperformed in the short term - time to sell probably? In the long term they go nowhere much, what they gain here they lose there. I'm not saying they are a bad company - I have a fairly big holding. But looking at the longer term, I don't think there is really any doubt that DGL are the better investment. Ten years from now the story of the last ten years for each company will likely repeat as far as I can see. They both are consistent to their own strategy and DGL's strategy is better.

[Beagle]

Time will tell. I have posted my thoughts on HLG in the appropriate thread. Probably the most misunderstood growth stock on the NZX, (probably due to complete lack of analyst coverage).

[777]

Interesting that Kingfish have DGL in fund but not HLG.

[winner69]

Interesting that Kingfish have DGL in fund but not HLG.

KFL understand DGL but can’t get a handle on misunderstood stocks?

[Beagle]

Kingfish have done well to beat the market by a few percent on average over the last few years and I understand they view DGL as very much a core stock in their portfolio. I am sure they will be pleased with today's result as are other shareholders. I vividly recall at last year's Kingfish annual meeting that shareholders were very keen for the directors to ask Delegate's to bring along some of their excellent wine to enjoy with the superb complimentary lunch. Such a fine idea. Lets hope it happens at this years KFL meeting.

Forecasting $67m this year which is 66 cps and puts them on a FY21 PE of 23 at today's closing price. Seems reasonable given their solid track record.

[jg8512]

what is happening to profitability/solvency in the wine sector? two significant receiverships within the week: https://www.rnz.co.nz/news/business/...n-receivership and https://www.stuff.co.nz/business/ind...o-receivership

and before that Lamont wines (Organic) and Carrick Wines (owned by the murdered woman in Akld) went into receivership.

anyone shed any insights?? reassuring that DGL's recent update was so positive, but still interested to know what is happening in the wider sector.

PS. the last harvest was not flash, so financial pressures on the sector may grow. consolidation opportunities?

[Ricky-bobby]

Yeh both have been I trouble for a while... both are a complicated supply model with slow cashflow. Delegats is the opposite, single skew (oyster bay) that hums. They have just purchased more land up the wairau valley, think they have nearly 8000 hectares now... they also have an impressive route to market and are very effective at moving their product quickly (great cash flow). Villa and sacred hill are to exposed to Bordeaux reds, need to age for 12-18 months takes ages to sell through.

[Rawz]

Villa Maria holding company receivership was actioned because of infighting in the Fistonich family, younger generation wanted to sell while older generation wanted to hold is my understanding. Business needs capital to expand. Can't do that through current ownership. The receivership was the only way to force the sale of Villa Maria which operates profitably.

Harvest down on last year is well known. Might see some of the big players buy some of the smaller players.

[Ricky-bobby]

George doesn’t want to sell but bank is forcing it placing it into receivership. Bank wanted the sale to be through by the end of April and this cut out oversea bids. Scales bid covers debt with a bit left over for family. Next offer only covered debt...

[Biscuit]

Seems to be no positive reaction to the Free Trade deal agreed with the UK that will eliminate tariffs on wine once it comes into force. Should provide a healthy boost to DGL exports to Britain, one of its main markets. I've been adding to my holding during this years sp weakness.