Long time watcher, first-time poster.
Hard to predict the short-term action, but Lark has a 30-year history of Tasmanian whisky providing it with a competitive advantage in terms of brand legacy, process and product. Historic underinvestment in inventory and brand has however constrained sales. New management is now focussing on
1. investing in high-value channels (e-comm, on-premise, and export;
2. innovation in finishing (eg Christmas and Tawny Casks);
3. increasing production capacity and whisky inventory to support sales (incl. export);
and 4. refining the brand. LRK’s whisky bank is worth $435m at FY22e, B* expectations are for sales to compound at 47% pa (FY21–24e), and there is growing corporate appeal in New World whiskies.
Think the long term here is obviously up. Brokers can see it, going by the $9 price target from Barrenjoey. Just a matter of time for this one. If any consolation on the last couple of months of activity, nice to see an HC community developing.
(20min delay)