Willamette Valley Wines
This company has been around for a long time. They sell wine online, but also distribute under the Griffin Creek Tualatin Estates & Willamette Valley Vineyard labels. Their sales have been increasing, up to 25%/year. They’ve increased over the last 6 years in general -336.3 million cases sold in 2016, 20% more than 2015. People like wine, and since we like to “buy what we know” this fits the bill. I can’t remember the last time we didn’t have an open bottle of wine at our meeting.
As a club we are constantly searching for small cap companies, this happens to be a nano-cap company, and fits the “tiny” bill. It is a winery in Turner, OR and buying nearby is always an added bonus. WVVI’s grapes are grown in vineyards owned, leased or contracted by the company. This Oregonian location for a vineyard could prove to be beneficial since much of CA is swimming these days.
This company has historically had a healthy growth rate and a healthy growth rate is expected. We always look at the 52 week range to see if we think the company is in a promising ‘buy’ range – WVVI’s range is $6.75-$9. Valueline gives WVVI a financial strength of B.
Sales have increased since 2012. The graph looks healthy. It seems promising. Who doesn’t love wine? I feel like we are always taking a bit of a chance purchasing a small cap company but the shares are cheap!