Time to evaluate another stock... Andrew Peller Limited Class A [TSX:ADW.A]
This is a description of the company
Andrew Peller Ltd is engaged in the production, bottling and marketing of wines & wines related products in Canada. Its brands include; Sandhill, Peller, Red Rooster, Calona, Thirty Bench Wine, Vineco, Winexpert and Artful Winemaker. Debt/Revenue
This is a link to ADW's balance sheet
Quarterly Balance Sheet
from the above link I find this information
CAD in Thousands... 2017-09.......... 2017-06............. 2017-03.......... 2016-12.......... 2016-09
Current Debt ............... 33,934............. 41,069................. 41,026............. 45,512............. 33,980
Long Term Debt .......... 91,761 ............ 45,625 ................ 46,678 ............47,806 .............46,257
I like the structure of this debt though I wonder at the doubling of the long term debt in the last quarter. Other than that there is consistency and the current debt is has a nice decline to it.
Now let us see if they can support this debt with revenue
Income Statement
CAD in Thousands... 2017-09.......... 2017-06............. 2017-03.......... 2016-12.......... 2016-09
Total Revenue............... 91,857............. 88,640................ 72,295............. 94,048............. 88,357
Net Revenue .................. 9,226.............. 8,191 .................. 2,010 .............. 8,137 .............. 7,630
Well they certainly have enough revenue to service the debt and still generate a nice net revenue... not one negative net revenue in the past 5 quarters and the last net was the highest.... And we are headed into the best seasonality change for drinking wines
Technical analysis
Here are the first two charts
I should have done this analysis yesterday {sigh}... at least I have been catching stocks closer to their breakouts lately.
Nothing bearish in the stock's P&F chart... it struggled in early 2017 but as of August 2017 it has rocketed off.
The Trigger chart is equally as impressive... see the buy signal in the indicators below... the Slow Sto was already solid above 80 and the MACD and BBwidth have a sharp up tick.
Note in the upper circle the share price is far above the upper bollie... what does that mean? I expect a pullback
is possible... though the strong volume may not produce an immediate retrace... the best scenario is to re-enter the bollie envelope in a positive drift.. I don't want to see a strong immediate pullback.
here are the next two charts
What can I say... everything is Bullish and we are heading into its bast season... All the indicators are great.
It is not necessary to do my normal consensus analysis...It is quite obvious that there is no bear bone in this body
Conclusion
I don't envision a big pullback... this showing is too powerful
I will set a Limit Buy as of 10:38PM MST Dec 21/2017 for 2000 shares of ADW/A.to @ $15.25/share
If the stock just takes off from where it closed... I will chase it down as cheap as possible... I want this stock.
_____________________________________________________________________________________________________________________________________________
Disclaimer:
I am not a registered broker. I am retired and use Technical Analysis as the main tool in my investment decisions. Accept or reject my comments as you will, but do your own Due Diligence (DD) before making any decisions based on the information I provide.
Underexposed
|
