RE:RE:RE:RE:RE:RE:RE:RE:LEADERSHIP LEAVING PELLERGiven its a winery how quickly are they going to reduce inventory when they need to raise wine prices? Unfortunately no easy wins. Reducing inventory will be an accomplishment. Not saying it can't be done just can't think of any wineries that have quickly done that with inflation pressures.
I have the impression management thought the low rate environment would persist by having the tangible assets funded by 50% debt that is variable rate.
With profitability questionable now the equity resembles a call option on increasing cash while decreasing uses of cash. I don't think a DCF model adequately captures the risk here.