SVIN - Scheid Vineyards

[porcupine]

Oddball Stocks makes a good case that Scheid is just a bad business:

http://www.oddballstocks.com/2019/07/do-disappointing-scheid-vineyards.html

A $9/ share GAAP loss for a $65 stock is something to sneeze at.

Indeed. Awful year.

Case sales were extremely disappointing, as these sales are the basis for the long-term thesis. Looking forward to seeing FY 2020 case sales with the increased sales effort and announced partnerships. 

[writser]

Isn't the long-term thesis that the owners sell this to another rich man who wants a hobby at a very juicy price / acre? Consider me skeptical about the economics of the vineyard itself.

[Spekulatius]

Isn't the long-term thesis that the owners sell this to another rich man who wants a hobby at a very juicy price / acre? Consider me skeptical about the economics of the vineyard itself.

Yes, owning a vineyard is similar to owning a sportsteam, horses etc. in this sense - they are status symbol he super Rich and give them something to do. Scheid vineyards may not be good enough in terms of quality to be bought as a celebrity toy though.

[Foreign Tuffett]

If someone is (1) interested in this space and (2) only managing their personal account, I think they would be better off trying to buy a few shares of the (brutally illiquid) CAOX, which is more of a landlord than it is a vineyard operator (over 50% of its owned acreage is leased to 3rd parties).

[writser]

If someone is (1) interested in this space and (2) only managing their personal account, I think they would be better off trying to buy a few shares of the (brutally illiquid) CAOX, which is more of a landlord than it is a vineyard operator (over 50% of its owned acreage is leased to 3rd parties).

I have nothing to add.

[Foreign Tuffett]

Greenhaven Road is still in this, with the thesis being that it's trading @ ~30% of NAV.

https://static1.squarespace.com/static/5498841ce4b0311b8ddc012b/t/5daa7eaeab96a61181bef76f/1571454639744/Greenhaven+Road+Letter+%282019+Q3%29.pdf

While it is undoubtedly too small/illiquid for Greenhaven, I continue to believe that CAOX is a better deeply discounted CA vineyards play than SVIN. CAOX leases a big chunk of its land to SVIN -- I know which side of that transaction I'd rather be on.

[Spekulatius]

Greenhaven Road is still in this, with the thesis being that it's trading @ ~30% of NAV.

https://static1.squarespace.com/static/5498841ce4b0311b8ddc012b/t/5daa7eaeab96a61181bef76f/1571454639744/Greenhaven+Road+Letter+%282019+Q3%29.pdf

While it is undoubtedly too small/illiquid for Greenhaven, I continue to believe that CAOX is a better deeply discounted CA vineyards play than SVIN. CAOX leases a big chunk of its land to SVIN -- I know which side of that transaction I'd rather be on.

Well just a simple look into the latest bag holder report should remove all doubt where not to put any money:
https://backend.otcmarkets.com/otcapi/company/financial-report/231867/content

[trying to improve]

Scheid Vineyards reported earnings for quarter ending May 31st, 2020
Lost approximately $2.4 million ($2.70/share) vs $2.8 million loss ($3.15/share) same quarter from prior year