tag:blogger.com,1999:blog-2149523431587168680.post217494798652251853..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Like wine? Then maybe you'll like OeneoNate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2149523431587168680.post-58413140691403732402013-01-18T00:54:17.738-05:002013-01-18T00:54:17.738-05:00Thanks for this post!Thanks for this post!Darmanoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-74744861416555682722012-10-02T17:00:42.540-04:002012-10-02T17:00:42.540-04:00Hello Nate
I own some SBT shares (bought under 2 €...Hello Nate<br />I own some SBT shares (bought under 2 €).<br />How many shares do you take into account ?<br />Here are my numbers :<br />50,619,974 shares +<br />8,648,190 (from the convertible bond = ORA) +<br />1,270,548 (from the BSAR ; how the hell to you translate that share subscription warrants attached to the bonds ?)<br />=60,537,712 shares<br />see page 19 of the "Reference report" for 2011 issued July 30 for these numbers<br /><br />That makes SBT cheap but not dirt-cheap.<br /><br />I think they're now mainly betting on "DIAM" closures = cork treated (with supercritical CO2) to avoid cork taint. They recently started a second production plant.<br />http://www.youtube.com/watch?v=bIvg9EVorJA<br /><br />Their analysis is that cork closures (and not metallic screw on caps and related stuff) will continue to be widely used by winemakers for premium/expensive wines (tradition, etc...).<br /> <br />And if you sell expensive wine, I think you're willing to pay a little more for a cork if you somehow think your wine will age better.<br /><br />Operating margin 20 % on closures, 14 % on barrels.<br /><br />In principle I'm a little wary of a company relying on a technological advance for competitive advantage, though. <br /><br />RegardsCaquehttp://valueinvestingfrance.blogspot.fr/noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-81843142497775608982012-10-02T11:03:04.423-04:002012-10-02T11:03:04.423-04:00I like your point about the stable Southern Europe...I like your point about the stable Southern European market for wine. This will probably never be in a recession...?<br /><br />Could it be that the great margins , the high growth and the cheap multiples of the company are ignored because of the downturn in the French economy in general? Could it be that this company needs a catalyst, such as french economy turnaround, before people realize how cheap it is?Vegardnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-14872764878713179622012-10-02T10:56:52.070-04:002012-10-02T10:56:52.070-04:00Hi Nate,
interesting that you bring up Oeneo. Ton...Hi Nate,<br /><br />interesting that you bring up Oeneo. Tonnelerie Francois Freres which is one of my main holdings is the company which just bought Radoux from Oeneo.<br /><br />Oeneo's past is really horrible, share count for instance increased stteadily due to a series of distressed rights issues.<br /><br />From the perspective of TFF, the Radoux purchase was quite nice because the market leader could buy the struggling number 2 and will hopefully reap some synergies. And the price paid was Ok.<br /><br />I am not sure what is now left at Oeneo, from what I know they are now only producing cognac barrels.<br /><br />The shareholder structure is relatively intresting. The company is controlled by by the family behind Remy Cointreau (Debreuil). It seems to be a kind of "playground" for them.<br /><br />Oeneo is often among potential delisting candidates, so there might be a potential catalyst.<br /><br />However, in my opinion Tonnelerie is the much more interesting comany. I tis not so cheap but a really steady grower with a very strong competititve position.<br /><br />MMI<br /><br />memyselfandi007http://valueandopportunity.comnoreply@blogger.com