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Bullboard - Stock Discussion Forum Diamond Estates Wines & Spirit Inc V.DWS

Alternate Symbol(s):  DWWEF

Diamond Estates Wines & Spirits Inc. is a Canada-based producer of wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. Its principal business activities include the production, marketing and sale of wine, and through its agency division, operating as Trajectory Beverage Partners (TBP), distribution and marketing activities for various beverage alcohol... see more

TSXV:DWS - Post Discussion

View:
Post by TheCount11 on Feb 01, 2023 12:25pm

Embedded option

One way to think about a company like DWS is like a lotto ticket or an option.

Why is there a Going Concern by auditors?

Year to date
1) the company reported a 3 million dollar loss.
2) cashflow from operations was a 1.7 million dollar loss.
3) working capital deficiency of $2.8 million dollars.

The book value of the assets are not bankruptcy value.  

Lassonde effectively owns over a third of the company so it is unlikely they want to lose their tangible book value of investment to primary creditors. 

The value of DWS option is the tangible book value per share discounted to today by your next best investment.  ie Reitmans has YTD EPS $1.03, $65M cash, Tangible Book Value around $6, trading at a 52week high with PE of 3.7

So given that I would pay today about 15 cents for DWS because Reitmans offers much less risk and much reward.  This is not investment advice to go buy Reitmans.

 
Comment by 88guy88 on Feb 01, 2023 12:41pm
Go away...you are not fooling anyone.....go peddle your Reitmans elsewhere...you hare ZERO cred...and you make no sense at all...lol!
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