Virgin Wines Share Price (VINO)

Crazy low price what with £11m cash no debt decent cash flow and a give away mrkt value. So here's the 'BUT' its stuck in an awfully cut throat competitive sector which will throw up opportunities to expand on the cheap so to speak.

Am in on a joint on a 6 month view.

WINE now worth £40m after a strong recovery, double VINO's £20m.

The real winner with VINO would appear to be Virgin Enterprises Limited who get an undisclosed royalty based on sales subject to an annual minimum which increases each year with CPI. This right to use the name (which is UK + Ireland only) ceases in 2029. I can't find any references to the %, but I am guessing its somewhere around 3-5% of sales - and presumably on all sales including those introduced by partners and non-consumer sales.

If this is the case, it is staggering that the company listed at the value it did and it would seem that the current valuation is still relatively generous in today's market.

VINO and WINE now have very similar Mkt. Cap. after WINE's plunge. Just hope VINO isn't finding things as difficult as WINE is.

Https://www.proactiveinvestors.co.uk/companies/news/1030915/virgin-wines-drops-following-mediocre-earnings-report-1030915.html