Topic: How To Invest

Q: Dear Pat: Please give me your comments regarding Diamond Estates Wines & Spirits Inc. (DWS). Thank you.

Article Excerpt

A: Diamond Estates Wines & Spirits, $0.29, symbol DWS on the Toronto Venture Exchange (Shares outstanding: 145.4 million; Market cap: $40.7 million; www.lakeviewwineco.com), produces, markets, and distributes wine and alcohol products. The company operates one winery in Toronto and two in the Niagara region of Ontario (where it is also based). Diamond Estates produces both VQA wines (wines made of 100% Ontario grapes) and blended wines under several brand names. They include 20 Bees, EastDell, Lakeview Cellars, FRESH, Dan Aykroyd, and Seasons. Through its Kirkwood Diamond Canada (KDC) business, the company also acts as the sales agent for a portfolio of international wines and spirits. While the sale of wine under Diamond Estates’ own labels contributes about 53% of its revenue, its agency unit contributes 47%. The company’s overall revenue fell 12.0%, from $23.4 million in 2013 (fiscal years end March 31) to $20.6 million in 2014. It then recovered to $24.3 million in 2015 and $29.2 million in 2016. Powered by…