DGL

[macduffy]

where is the up to date thread??

This is it!

The other is Delegats IPO.

[Biscuit]

HY result out. Slow progress, but still predicting 9% improvement in NPAT for full year

[noodles]

DGL reached an all-time high today. No doubt on the back of a lower NZD. #exportersAreLovingIt

[forest]

DGL reached an all-time high today. No doubt on the back of a lower NZD.
#exportersAreLovingIt

Hi Noodles, as an exporter DGL benefits from the lower $NZ also DGL is growing its business with the help of substantial borrowings. The lowering of interest rates is also helpful.

[noodles]

Hi Noodles, as an exporter DGL benefits from the lower $NZ also DGL is growing its business with the help of substantial borrowings. The lowering of interest rates is also helpful.

Good point. I hadn't factored any drop in interest rate into my rough calculations. Will need to revisit that.

[Hoop]

OCR dropped from 3.25% to 3% at 9.00am today.....Another breakout for DGL this morning to new highs

[tobo]

Craigs have this as 'increase'. (Quality brand and offshore earnings.) But they also have a 12 month share price target of $7.05

[BlackPeter]

Just passing this stock somewhere on the bottom of my watch list. Clearly one of the stocks where I underestimated the potential and sold ways too early (with a nice gain I might say).

They are clearly a well run and successful business producing a quite drinkable wine , but still baffled what motivates investors to pay nearly $10 for a share with a forward PE of more than 20, a backward PE of nearly 30 and a forward CAGR of 5? I guess sure, their income (Kiwi dollar dropping) is likely to grow in the next couple of years, but still finding it difficult to make up credible future income numbers justifying the current share price.

Anybody wants to share their income and growth assumptions - or is this just riding the wave? Though fair enough - they say "let your profits run".

[forest]

I have followed DGL for a long time and I am with you, the share price seem to be 2 or 3 dollars ahead of what value I would give it. Specially when you allowed for the extra risk you take on with DGL high Debt to Equity of just over 90%.
Whatever Jim Delegat does he seem to do with a lot of passion, that passion used to be the winery business. Nowadays he seem to put a lot of passion into sailing. I am just wondering if the winery still gets the attention its needs.

[Patient Panda]

Just passing this stock somewhere on the bottom of my watch list. Clearly one of the stocks where I underestimated the potential and sold ways too early (with a nice gain I might say).

They are clearly a well run and successful business producing a quite drinkable wine , but still baffled what motivates investors to pay nearly $10 for a share with a forward PE of more than 20, a backward PE of nearly 30 and a forward CAGR of 5? I guess sure, their income (Kiwi dollar dropping) is likely to grow in the next couple of years, but still finding it difficult to make up credible future income numbers justifying the current share price.

Anybody wants to share their income and growth assumptions - or is this just riding the wave? Though fair enough - they say "let your profits run".

Hey BP,


i had a quick check on reuters and their 5 year eps growth is 9.82. Unless theres obvious reasons as to why it might be lower in future a forward CAGR of 5 seems very conservative. Reuters mean estimate of future long term growth rate % is 14.33

NZ has a strong comparative advantage in wine. Aus exports far more by volume but NZ much higher by value. Only a few countries in the world can be or are currently great wine producers (e.g argentina, italy, france)

As to DGL’s share price often times theres no rhyme nor reason. Mr market is prone to depression and over exuberance. Reuters notes the 5yr PE low was 9.73 so quite a difference to the PE of today !

https://www.reuters.com/finance/stoc...hlights/DGL.NZ



i do not know much at all about DGL though I do own a reasonable amount of one of their smaller competitors, Invivo. They’ve tripled revenues in the last 3 years and have been extremely happy with them thus far.