Who would have thought we'd be above 15c back in Feb? I've been in since 1.9c and no plans on selling. The last few days do not worry me in the slightest. In fact I'm excited. We've had the largest retrace we've ever had, and we are still above 15c. It was only recently we were celebrating 10c.
DW8 is a unicorn stock and a once in a life time opportunity (even at these prices). At its core is a market disrupting idea that is a win-win for producers and buyers. It has developed a business that provides an end-to-end logistical solution developed by DT from years in the wine industry after personally experiencing where the downside is in the supply chain. He has covered every angle to support the winery and the buyers. This level of dedication to supporting wineries and buyers is why we have achieved such market share in SA. DT and the team could have 'thrown' together a business that does ok, and it would probably be showing better financial results than DW8 - at this stage. But that is not what they have done. They have developed an end-to-end logistical solution that covers every aspect a producer or buyer could ask for. This level of commitment has taken time, but it is also why we don't have any real competitors, because what DT and the team have achieved takes a lot of hard work, and a lot of connections within the industry. The gap between DW8 and any competitors is only going to grow. The fruits of DT and the teams' hard work is close to paying off with the imminent launch of the B2B.
Now if you consider the timing of DW8 into the market it only gets more positive. It started signing up wineries really only months before Covid hit. This was a global catalyst for ecommerce - things were already heading that way but this gave it a huge boost. This provided exponential growth for DW8 through 2020 in the form of sign ups. Then came the China trade issues, which saw DW8 SP drop. However, this was fantastic news for DW8. At a time when we are in the sign up phase, our largest export country decides to slap us with significant tariffs leaving many wineries without a buyer for a chunk of their wine - in comes WineDepot. Now those tariffs have been extended for 5 years. Now if you consider the Bibendum partnership which provides a big injection of sku's and trade buyers into the B2B just prior to launch, this is likely to be another significant catalyst of growth for the B2B and subsequently DW8.
Additionally, many of the LTH here invested in the idea of the B2B market place - which is also why I jumped on board. However, what I didn't anticipate was the possible and now likely growth of the D2C market. We have seen the MOU with ebay, which was expected, but the vivino partnership was not anticipated. This is the world's largest online wine Marketplace with 50million users worldwide. This partnership, along with ebay, will be a catalyst for more partnerships, and a greater exponential growth rate for DW8.
Yes there is still work to do, but we are also a start up company that is not usually listed on the ASX. We are in the fortunate position that DW8 was already a listed company prior to DT and WineDepot. This gives us investment access to a market disrupting tech company with exponential growth opportunities at pre IPO prices, yes I believe we are still cheap. The Australian market share prospects are exciting enough in themselves, but add in the possibility of international expansion (beyond NZ) and the DW8 story only continues. Once you appreciate what DT and the team have set out to achieve - and are achieving - you will feel comfortable with your investment.
Happy weekend all!
DW8 Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
(20min delay)