Wine Stocks: Stocks Worth Sipping?

1. The first evidence of wine production dates from 6000 to 5000 BC.
2. Greece contains remnants of the world’s earliest evidence of crushed grapes.
3. In medieval Germany, beer was banned and considered pagan and barbaric while wine consumption was viewed as civilized.
4. The color of wine is determined by the presence or absence of the grape skin during fermentation.
5. White wine can be made from any color.
6. The five countries with the highest wine production are France, Italy, Spain, U.S. and Argentina.
7. Studies have shown that moderate drinkers of wine have a lower risk of hearth disease.

Many of these stocks are low cap and thinly traded.

Constellation Brands Inc. (STZ) The largest seller of wines in the world, their wines include Estancia, Ravenswood, Simi, Almaden, Banrock Station, Hardys, Inglenook, Vendange, Arbor Mist, Robert Mondavi Winery, Franciscan Oakville Estate, Blackstone, Robert Mondavi Private Selection, Ruffino, Alice White, Nobilo, Hardys, Woodbridge by Robert Mondavi, and Stowells. They also produce and sell beer and liquor. Price sales ratio is a favorable 0.96 and the P/E ratio is 19.25.

Scheid Vineyards Inc. (SVIN.PK) This Salinas, California based company, which trades on NASDAQ, is involved in the production and sale of wine grapes and bulk wine, including Chardonnay, Cabernet Sauvignon, Merlot, Pinot Noir, Sauvignon Blanc, and Syrah. The stock has a price sales ratio of about 1.01 and a P/E of 8.7 based on latest reported data. This thinly traded stock is trading below its $40 book value per share.

Willamette Valley Vineyards, Inc. (WVVI) This Oregon based company, founded in 1983, owns and manages vineyards and a winery. Their labels include Pinot Noir, Chardonnay, Pinot Gris, Riesling and Oregon Blossom. Price sales is 2.17 and P/E is 28.55. Quarterly earnings growth was down over 34%.

360 Global Wine Company (TSIX.OB) This Sonoma, California based company, founded in 2002, is a producer and seller of wines. Their wine brands include Viansa, and their Viansa winery receives over 1,000 visitors per day. Their P/E is 0.3 and their P/S is 0.61.

Foster's Group Ltd. ADR (FBRWY.PK), in addition to being known for its Foster's Lager beer, it also owns several major wine brands including Beringer, Chateau St. Jean, Jamiesons Run, Wolf Blass, and Yellowglen. The stock has an operating margin of 24.35%, and the return on average equity of 15.20%.

Majestic Wines PLC (MJWNF.PK) is a retailer of wines and beers. The stock has an operating margin of 9.15% and the return on average equity of 26.25%.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com