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It's got to be worth £20m or £30m, SELL IT!!!!
The operating costs of DIS are so low, that it could sell RedLeg and spend the next 3 years building 20 new brands, whilst building up Blackwood's and Trove to sell off, IT WOULD NOT RUN OUT OF MONEY!!
I did not mean sell the shares. I meant sell the Red Leg...It is the mainstay of the business..
Yes, I have a bottle of the first year of Benriach 25yo blended malt - as yet unopened.
Its a good earner, but I will probably never open it ..
I took it DIS was just going to release a blended malt, not a single malt.
A blended can be released a lot quicker, as the malts are in the barrels and already aged, just take some of each and blend them, bottle it, brand it and sell it.
As per the first Ardgowan RNS:
"Within the Manufacturing Agreement (see below) Ardgowan will assist, through their Whisky Distiller, the sourcing and crafting of blended malts purchased in cask from third party distilleries. These whiskies will be branded, owned and marketed by Distil and sold through the Company's own distribution network."
It goes on to say:
"Malt whisky is an attractive high value, high margin, high growth category. Opportunities for the joint development of future malt whisky products will be explored enabling Distil to further broaden its brand portfolio once Ardgowan whisky stock has sufficiently aged (minimum of three years). Distil expects to launch a range of Distil branded premium malt whiskies in 2021/22"
I don't plan to, didn't mention selling did I?
My shares only cost me 0.8p so I can wait for a decent return, but SG needs to get on with selling RedLeg, as he is the one that told us that selling brands is the core strategy of DIS, yet he's not sold a single brand since he's been here.
Single Malts are specific to the locality, local malt and most importantly the used American Oak casks used for ageing, and it takes a minimum of 10 years to get a good one. But there is plenty of empty sheds on Shetland to mature a good still.
Why sell.... Hope a wee recovery today...
Nice update. All still going well. Blackwood's still growing. Redleg still the brand worth the most money and the brand we should sell ASAP to take this company to the next level with multiple new brands funded. DIS hugely undervalued. Not much else you can say really, is there.
Its great that the lowest grade of whisky can be sold for that money, but mostly its the name, as the product can be churned out at any of their factories, and left in the shed for 7 years in the cheapest old American oak second hand barrels.
"Diageo has announced that it has sold it's Windsor blended whisky business to a private South Korean equity group for £124m. The deal will be completed in fiscal 2023 and Diageo will provide the whisky content for the next 10yrs. Windsor is a 40% premium brand aimed at affluent whisky drinkers in Asia, where its biggest market is Korea. There is a marketing hint that there is some link with Lochnagar, but as this is about the tiniest of Diageo's distilleries, it's hard to imagine there is much of the Scottish brew in it. In 2014 the brand just squeaked into the world’s top 25 Scotch whisky blends by volume with sales of 700,000 cases but I can't find any more recent data."
DIS surely has to be doing similar volumes, with very good margins, and very good potential for the DIS brands if owned by one of the global spirits manufacturers.
So DIS is ridiculously undervalued, as suspected!! "Diageo has announced that it has sold it's Windsor blended whisky business to a private South Korean equity group for £124m." versus DIS MCap of just £8.55m.
DIS is so far under the radar, it's like a stealth bomber that's hidden in a secret underground bunker.
How does DIS get itself rerated, without some big company putting in a low ball offer to acquire DIS and then a bidding war kicking off??
It would be good to get some updates on the plans for a malt whisky brand as this could be a good addition to the DIS brands. A decent single malt will never go out of fashion IMHO.
Below is the excerpt from last year's RNS
· Immediate and longer-term benefits for the Company through the Investment, including distilling, new product development and small batch bottling capability, a physical 'home' for the Company's Blackwoods and TRØVE brands and access to Ardgowan's Master Distiller, the renowned Max Macfarlane, to help produce an own brand malt whisky for the Company;
· The global malt whisky market is currently worth approximately US$7.7bn out of a total whisky market worth approximately US$74bn annually. The Directors believe there is significant scope for growth in the malt whisky market and see numerous benefits through adding malt whisky to the Company's product portfolio as well as through further collaborative agreements with Ardgowan;
Bored. Even stopped drinking since i bought these. I will visit Scotland and see he new building if I live long enough.
IMHO 2 years ago DIS was in a bad position. The only brand doing well was Redleg - 31/3/20 YE accounts for Blackwoods and Blavod showed a big decline despite the gin boom and duty free (for blavod) not really impacted by covid at that time. DIS is careful not to split revenue by brand but RL appears to be well over 50%. Without RL the other revenues wouldn't cover costs and that's before any marketing spend.
So that £10m would be burnt through pretty quickly as we are competing against massive companies in the gin and vodka space.
Today Blackwoods is in a better space and appears to be considered a premium gin brand, and we also have the new Vodka brand. Whisky is coming soon. Blavod will never be a big seller IMHO - pointless throwing a lot of money at this.
I would be more comfortable selling RL in the not too distant future as i can now see alternatives. 2 years go i don't think that was the case. Just my opinion
shandypants2,
If he sold RedLeg back then, DIS would have been a fair bit more than a shell, with Blackwoods and Blavod and the other brands, but with £10m+ in the bank to pay for big marketing and a multitude of new brands to build up. I'd have taken the money and got things moving. Pity Don was just too greedy and wouldn't let his baby go. Will he ever sell a brand? I don't think so, he will be retired before that.
Wrong board I guess ringworm?
Double your money from here.. just need to be patient.
We should receive 150 - 250k per annum interest on the loan we made to Ardgowan which will pay for some heavy marketing when necessary.
10 years is still a baby in branding terms, and the primary investor is long term (Rothschild) so don't panic about not sold - who would the customers be ?
Diagio ? any more suggestions ? and who is in the market for buying ? Kraft-Premier ?
Blackwoods is well established here, its just not "Boutique" as the trend is just now.
My chart says its at the bottom of the price curve, but may not move for 6 months, watch and wait, maybe a small punt here and there when something spills over. At least they survived lockdown by making hand sanitiser ..
Haggis - i remember the comment about building brands.
IMHO the issue is/was that the only decent brand was RedLeg , so to sell that off they would be left with a shell (a bit like IDP with Skinny Tan).
Blackwoods was struggling a few years ago (despite the gin boom) but that seems to have been resolved and there are clearly plans to grow it further. This could have decent value in a few years. The new vodka brands are small appear to be growing nicely so lets see what happens there. The Whisky option via the new distillery is also interesting.
But as of today the fact that RedLeg is probably worth more than the current market cap shows how little value the other brands currently have.
The ii's were told several years ago that the DIS core strategy was 'DIS builds brands in order to sell them', because 'brands are where the big money is', and they were no doubt given a list of brands that had sold for tens of millions (he rolled some off to analysts on a video that was on YouTube a few years back). DG also says he laughed at offers of £10m for RedLeg.
At this point in time, many MANY years later, we have not sold a single brand!! That is surely an epic failure, because it is the core strategy!!
If DG had accepted the £10m for RedLeg, imagine how he could have built up the business with that, and made several other new brands worth £10m or even up to £50m each with enough advertising.
So we are now left drifting along just looking at sales figures every 6 months. It's no wonder people (especially ii's) are bored.
DG needs to get back to the core strategy and sell off Redleg, Blackwoods, and anything else that buyers will pay a good price for, then we can get on with creating the next wave of products, and we can all have a special dividend to make us a bit happier after a long time waiting for a decent return.
DG should remember that investors own the company, and they invest looking for a return, they do not invest just to create a gravy train for the BoD to live off forever.
I think you mean 1.2p to buy, and 2p to sell, it was never 12p nor 20p ... 1.2 is a good in, 2.0 was profit but not top ..
I don't think we will see 1.2 again, but certainly 2.4 sometime ..
As I have previously noted - its a pendular share, sell at the top, buy in the dips - rinse and repeat - but look at the swings over years not days ..
pedro61 - How do you arrive at the valuation you do?
What is your valuation?
I remember buying this for 12p in 2015 and selling for 20p in 2019. One of my best moves ever.
Great future.Should not have been marked down ,on a 20% increase over 2 years.Should be worth much more than this.
That was my point.. we have already outperformed pre-covid levels by over 20% which is great.
Little top up this morning.
Long term this has legs
steady growth to pre covid levels is good considering how little was sold in pubs