RE:RE:Value of Assets?I see lots of downside and lots of upside.
My big question is "Are all levels of government going to support Canadian Wineries?"
Are wineries stucturally unprofitable now?
The Niagara Wineries have been identified as an important tool in regional goods and services which is the major source of jobs. However, at a global level wine production has been increasing faster than wine consumption making for an increasingly competitive wine business environment. Not to pick on Argentina but they produce wonderful wines at a range of prices. Its very hard to compete as their currency weakens and labor is cheaper.
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That aside I would like to see Peller cut the dividend and invest in the wineries. Also if the land is really worth $750M sell a third of it and pay off debt.
I think they did a wonderful job diversifying Gretzky Estates. Wine, Beer, Whisky, Vodka, Cream Liqour, etc
Could the company add a spa to Riverbed Inn?
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I don't see any near term catalysts to drive a 5% profit for Peller yet the cash from selling the stock paying me 5%. Cheering company on from sidelines. Hope they get Government support!