For those of you living under a rock DW8 or Digital Wine Ventures is one of the most exciting growth stocks on the ASX. This company is revolutionising the conventional retail beverage industry. DW8 operates WINEDEPOT, which is an online platform that is transforming the wine logistics space. The company allows a cloud-based marketplace to allow trade buyers to purchase directly from suppliers and a network of depots across the country. By cutting out bulky steps in the wine logistics business Wine Depot is cutting costs for the wine industry and allowing for same-day delivery and cheap, reliable storage for traders.
So How Popular is IT?
Wine Depot has recorded a 557% increase in shipped cases month to month. Shipping a total of 25,311 cases. DW8 is growing exponentially welcoming 27 new suppliers to the platform in the last month alone.
COVID?
The recent growth of this company has been awe-inspiring considering the current global market and the Australian wine industry is in hot water with its key buyers in China. As we begin to see the world trade return to normal, we expect to see a massive boom in DW8’s opportunities. The company’s CEO Dean Taylor has expressed interest to gain exposure to the massive wine export of Australia worth 2.8billion. This is almost double the wine that Australians consume locally. This platform is going to allow many unique and smaller wine players a better opportunity in the global wine market.
Share Price
Over the past year DW8 has risen a massive 2592%, enough to turn $1000 into a whopping $27000. In the past month alone DW8 gained 66.67%. The current share price is $0.175, valuing the company at a market cap of 1.7B.
Financials
The first thing we notice in the financials is the massive increase in revenue from 86K to 991K, up a massive 1042% from this time last year. After taxes, the company reported a loss of 2.3M, which is the common story for these growth companies.
From these results DW8 has an EPS of -0.2cents and a book value of 0.6 cents.
DW8 is also in a strong cash position with 6.8M cash on hand and only 1.2M in short term liabilities. The company has net assets of 9.3M which has grown substantially from 500k last year, this is a jump of 1760%.
The Verdict
Not only is DW8 in a good financial position but it has had proven substantial growth and with many opportunities opening up to the company with exports and the eBay deal, things are only set to go up. So, it’s a clear buy for us.
Here is a look at one of our first reports of DW8 at the start of the march.disallowed link/the-share-price-of-digital-wine-ventures-exploded-todayAfter further investigation and the MOU deal with eBay we have taken a more bullish view and have taken a position in the stock. To the moon from here.
(20min delay)