Half of the live shorts were closed 30 May. 4.5% of shorts remain.
Contrary to Ralph's observation above, TWE has not broken its October 2020 support @7.77. I use here the ASX chart as it adjusts for splits, issues and dividends.
The damn fools over-paid for DAOU Vinyards, funded entirely with fresh equity and debt, for $US1b. Kiddies, you are supposed to invest from retained earnings, not fresh and dilutive equity.
This follows their buying Frank Family Vineyards for $US315m, using $US240m debt and the proceeds of US divestments.
Nobody wants to buy the 'Commercial Wines' business it offered for sale.
I dont list all their errors,which has to include buying Chinese vineyards.
It is easy to foresee further major write downs, poor cash flow and weak NPAT.
The final low and how far into the future it is remains an open question.
I have held, exited on poor financial performance well before they bought Frank.
Yes, yes, yes, Penfolds is a great global brand. Yet every corporate move - including back to Southcorp days - to build out on that strength has been a disaster.
I'll just sit over here and watch.
Ash
TWE Price at posting:
$7.93 Sentiment: None Disclosure: Not Held
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