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Strategies & Market Trends : Dino's Bar & Grill

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From: Goose9412/11/2017 8:01:32 PM
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Diamond Estates Wines & Spirits (DWS-V) top pick from Stephen Takacsy on BNN.ca Market Call Monday Dec 11th @ 1300ET

Only publicly-traded wine company in Canada besides Andrew Peller, and third-largest VQA producer in Ontario. Sales are growing fast now that new legislation allows wine to be sold in grocery stores in Ontario, where Diamond has the largest shelf space at 12 per cent market share. Currently 70 grocery stores sell wine, and this will quadruple to 300 over the next few years. Diamond’s export sales to China are booming. Also owns an agency that imports wines, beer and spirits. We also expect Diamond to make acquisitions and consolidate the fragmented wine market. The Beutel family owns 21 per cent, and we own just under 10 per cent having bought another block at $0.28 earlier this year. Enterprise value is around $60M or 1.7X TTM sales, which is cheap for a fast growing beverage company. Stock could double over next two years. A core holding.
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